Onsuming: RIP: Aeon To Delete Daiei

JAPAN CONSUMING
REAL INSIGHT ON JAPANESE CONSUMER MARKETS
YEAR 15 | NUMBER 10
OCTOBER 2014
IN THIS ISSUE
RIP: Aeon to delete Daiei.....................1
Unassailable Aeon...............................2
Aeons station mall model launch.........3
Brunello Cucinelli Japan expands........4
Isetan-Mitsukoshi: small store expansion continues, emphasis on clearer
targets..................................................5
Start Today cancels free shipping........6
Shosha invest in e-commerce..............7
Lawson to acquire Seijo Ishii...............7
Working population drops by 4 million
in 5 years.............................................8
Sazaby sells Starbucks stake..............9
Familymart: more cross-retail deals...10
Distribution industry staffing crisis......11
FOCUS: Apparel Retailing FY2013:
the best year in 15....................... 13-16
Retail & Consumer Data...............17-18
SEPTEMBER RETAIL SNAPSHOT

Company
YonY (%)
Total Comp
Adastria HD
Askul
Cawachi Yakuhin
Chiyoda
Daimaru Matsuzakaya
G-Foot (July)
Hankyu Hanshin
Isetan-Mitsukoshi
Komeri
Kusuri no Aoki
Matsuya (Ginza Only)
Muji (direct operations)
Nishimatsuya Chain
Nissen
Nitori
Parco
Right On
Shimamura
Sogo & Seibu
Sukiya (Zensho)
Takashimaya
Uniqlo
United Arrows
Uny
3.7
8.5
-4.0
-7.5
-1.1
12.1
2.2
2.3
0.8
13.4
9.9
7.0
13.1
-17.5
8.1
3.6
6.1
12.2
-1.0
-0.2
-0.2
22.0
3.6
-0.7
1.1
-6.7
-6.6
2.9
-1.3
2.4
1.8
11.1
5.3
5.7
10.4
7.1
19.7
2.6
-2.8
RIP: Aeon to delete Daiei

Aeon will shortly make Daiei a wholly owned subsidiary and delist the companys
stock. This means that Japans biggest retailer from 1972 to 2000 will finally meet its
end a fate it had previously avoided thanks to government support and funding. The
simultaneous confirmation that Aeon will also wipe out the Daiei brand has saddened
many in the industry, but Japanese retailing has changed to the point that few will
have been surprised.
Aeon isnt a retailer, its just a realtor. So said
Isao Nakauchi, founder and long-time CEO of
Daiei, to a JC staff member in the late 1990s.
Nakauchis inference was that Aeon was not a
real retailer and so not real competition. In Nakauchis mind it didnt exist For the Customers
as he himself had positioned Daiei. The proclamation, although true at the time, was the
kind of damning criticism that reflected not
only how much Nakauchi understood retailing, but also his honesty and forthrightness.
Although Nakauchi saw Daiei as the genuine retailer, it was already burdened with interest bearing debts of more than 2 trillion
way in excess of its annual turnover. These
were debts that Nakauchi, the last of the great
retail barons, was wholly responsible for, buying up ailing firms across retail, travel, hotels,
TV and radio stations, restaurants, and even a
professional baseball team. Nakauchi insisted
he was saving iconic but struggling companies and Daieis bankers were always willing to
fund him, a leniency which led to Daieis collapse.
Daiei was a financial train wreck long before it was handed to the Industrial Revitalisation Corporation in 2004. It never actually
went bankrupt the government refused to
allow the countrys largest, most visible retailer
to implode officially. Aeon was eager to take
over, but having already acquired Yaohan and
Mycal, was met with opposition from rivals,
and, although Walmart might have been willing, the IRCs political remit required a domestic firm to handle Daieis rehab. Instead Aeon
was given a large stake in Maruetsu, one of
Daieis largest affiliates, and a compromise was
reached by Marubeni taking over Daiei. While
on paper this seemed reasonable Marubeni
was a major Daiei supplier and had minor supermarket interests of its own the decision
to hand the countrys largest chain to a nonretailer was always likely to be temporary.
In 2007, in a move that shocked precisely
no one, Marubeni invited Aeon back into the

equation to help manage the ongoing restructuring process and inject some much
needed retail knowhow. The only irony was
that Aeon came on board just as Daiei posted
two consecutive years of record pretax profit.
It slumped into the red the following year and
has stayed there ever since. Aeon had to wait
six more years while Marubeni endured a series of major losses, but in July 2013 Marubeni
finally agreed to sell its stake in Daiei to Aeon
press reports claiming that Marubeni toyed
with the idea of selling to Walmart were just
PR, aiming to pacify those aware that Aeons
dominance in the retail sector had effectively
and suddenly become unassailable.
Last month Aeon confirmed that Daiei will
become a full Aeon subsidiary as soon as January 2015. Daiei has a number of station located
stores which Aeon will seek to leverage, and it
has already started work on integrating Daieis
highly rated Big A discount supermarket chain
located in Tokyo. Some 60 stores in Hokkaido
and Kyushu will be absorbed into existing
Aeon operations, while in Honshu all of the
remaining 280 Daiei stores will be closed or rebranded to focus on food. Within two to three
years, the Daiei name will disappear.
Aeon was cautious in announcing the removal of the Daiei name. Even though there
are quite a few recent precedents, Daiei is still
a retailer that has been embedded in many
communities around the country for literally
decades Nakauchis legacy of debt was of little importance to many loyal consumers who
knew Daiei as the first retailer ever to standup to the price fixing shenanigans of Japans
powerful manufacturers. Many will be sad to
see the name go, but Aeon understands that
modern retail requires strong brands and it
needs to unify its branding into a much reduced portfolio. In this new, genuine retail
empire, the venerable name of Daiei no longer
has a place. JC
this month
ABOUT JAPANCONSUMING
Editor
Roy Larke
editor@japanconsuming.com
Publisher & Editor

Administration
Michael Causton
michael@japanconsuming.com
Research Staff
Sally Bedown
sales@japanconsuming.com
Yukiko Ikeda
Masao Suzuki
David Reed
Production Control
Maki Endo
Eiko Stephens
Subscriptions
Sally Bedown
sales@japanconsuming.com
Fax: +813-4496-6421
JapanConsuming is for companies with an

interest in Japanese consumer and retail
markets. It is for those operating in Japan,
those planning to, and anyone that wants
to know about the second largest consumer
market in the world. JapanConsuming covers
most consumer sectors, retail trends, product development, consumer buying trends,
company financials and has a special focus
on the activities of non-Japanese companies
in Japan. It aims to deliver relevant, concise,
and usable information. We genuinely welcome feedback, comments and views.
www.japanconsuming.com
Unassailable Aeon
It is hard to avoid Aeon at the moment. It
is everywhere, not least absorbing Daiei and
thereby becoming the dominant mass market
retailer, with little chance of anyone catching
up, at least for a while. Its relentless expansion
of shopping centres in the last decade has
already transformed retailing in suburbs and
especially regional communities, and now it
looks set to do the same in cities.
If you are an overseas premium fashion
brand or upscale food business, you might
think Aeon has little to do with you, but this
is to ignore both Aeons wider impact in distribution, as well as its gradual incursion into
higher end markets. In food, Takashimaya will
open an upscale food emporium within Aeon
Okayama, a space that will showcase a myriad
of overseas food brands, and could sell a lot
more. Over in Hino, a new Aeon SC will play
host to the first Japanese outlet for French
frozen food brand Picard. It also runs the local
franchises of brands like Claires Accessories,
Body Shop and Sports Authority.
Equally, the spread of Aeon SCs to city centres has a direct impact on the venues selling
premium fashions, even if its own malls do not
suit premium brands yet. Not for nothing is
Isetan-Mitsukoshi opening five MI Plaza stores
in Aeon SCs shortly. Aeon Okayama will also

grind nearby retailing like Takashimaya into
the ground or force a rebuild while pushing
others, notably Tenmaya, to work hard to improve sales floors through brands like Tods
and Salvatore Ferragamo. In other words, a
new Aeon SC requires brands to understand
which retail partners of theirs will suffer, and
which will be shaken up and in that shaking
up, provide opportunities to negotiate.
For brands and retailers in the mass market,
Aeons dominance is both an opportunity and
a threat. A smooth relationship as enjoyed by
a host of international firms, from cosmetics
chains like Lush to a range of fashion chains,
delivers boundless opportunities for expansion in choice locations from a professional
and efficient SC operator.
At the same time, Aeons tried and tested
capacity to decimate local retailing means it
cannot be ignored, let alone spurned.
Only in food, with the growing power of
Seven Eleven and Lawson, is it being truly
challenged. As Japans most acquisitive retailer, it will no doubt seek to plug this weakness
too, and Daiei is the first step.
Tokyo, October 2014
Index
A-Coop, 10
Abeno Harukas, 4
Adastria Holdings, 13
Aeon, 1,2, 7,8, 10,11, 13, 15
Aeon Mall, 3
Amazon Japan, 7
Aoki Holdings, 15
Athena New York Girl, 5
Atmos, 7
Atre Vie, 8
Bape Kids, 5
Beams, 5
Berluti, 6
Bic Camera, 9
Big A, 1
Brunello Cucinelli, 4
Casabella, 4
Charles & Keith, 4
Ciaopanic, 4
Circle K Sunkus, 10
Cox, 15,16
Credit Saison, 10
Croesus Retail Trust, 3
Cross Company, 3, 15,16
Dila, 9
Disney, 6
Doshisha, 4
Dunoon, 4
Egoist, 16
Espritmur, 15
F. T., 15
Familymart, 10
Familymart A-Coop, 10
Fancl, 10
Fast Retailing, 5, 11
Fendi, 6
Flying Tiger, 9
Food Maison, 3,4
Forever 21, 13
Fray I. D., 13
Freeks Store, 4
Fukulog, 6
Gelato Pique, 13
Global Work, 15
Grameen, 11
GU, 13, 16
Hakuhodo, 7
Havaianas, 4
Helen Kaminski, 3
Hello Kitty, 6
HMV, 8
Honeys, 16
Inditex, 13
Isetan, 5, 7
Ito-Yokado, 11, 13, 15
Itochu Shoji, 4
Izumiya, 10
J Front Retailing, 6
Japan Imagination, 16
Japan Post, 5
JR East, 8
Keikyu, 15
Kintetsu Department Store, 4
Koe, 16
La-Boo, 6
Laura Ashley, 15
Lawson, 718, 10
Le Style Kids, 5
Le Style Lady, 5
Limited Edition, 8
Little Marc Jacobs, 5
Loft, 10
Lorena Antoniazzi, 3
Mac House, 16
Malie, 9
Maruetsu, 1
Marui City, 9
Maruoka Shoji, 16
Mash Holdings, 13, 15, 16
Matsuya, 15
Metrocity, 3
MI Plaza, 2, 5
Mina Perhonen, 5
Mitsui, 7
Mitsukoshi, 5, 7
Muji, 10,11, 15, 16
Mycal, 1
Niko and..., 13
Nissen, 15
OPA, 3
Orihica, 15
Pal, 16
Picard, 2, 4
Printemps Ginza, 9
Queens Isetan, 7
R. Newbold, 4
Rachel Ashwell, 9
Rakuten, 7, 15
Raquel Allegra, 9
Red Cabbage, 10
Reins International, 7
Ryohin Keikaku, 15
Salvatore Ferragamo, 2
Sazaby League, 9
Seibu, 4, 8, 10, 13
Seijo Ishii, 718
Seiyu, 9, 11, 15
Sense of Place, 15
Seven Eleven, 10, 15
Shimamura, 16
Snidel, 3, 13
Sogo, 8, 10, 13
Solaha SC, 5
Starbucks, 9
Start Today, 6, 13, 15
Stella McCartney, 5
Sterne International, 3
Studio Clip, 13, 16
T-point, 10
Taka Q, 15
Takashimaya, 2, 7, 15
Temasek Holdings, 7
Tenmaya Department
Store, 3
Tods, 2, 3
Tokyo Midtown, 5
Tokyu Hands, 4
Toppan Printing, 8
TopValu, 15
Trinity Arts, 13, 16
Uniqlo, 5, 6, 11, 13, 15, 16
United Arrows, 3, 5, 6, 16
United Cinemas, 8
Urban Research, 4, 8, 15, 16
Wacca Ikebukuro, 7
Walmart, 1
Wear, 5, 6
World, 2, 11, 13
Yagi Tsusho, 3
Yaoko, 7
Zara, 4
Zara Home, 4
Zozotown, 6
Zozoused, 6
This publication is provided without any representation or endorsement made and without warranty of any kind whether express or implied, including but not limited to the implied warranties of satisfactory quality, fitness for a particular
purpose, non-infringement, compatibility, security and accuracy. In no event will JapanConsuming or Sensu Limited or any of the contributors be liable for any damages including, without limitation, indirect or consequential damages, or
any damages whatsoever arising from use or loss of use, data, or profits, whether in action of contract, negligence or other action, arising out of or in connection with the use of the publication. No part of this publication may be reproduced
without prior written permission from the publisher. Sensu Ltd. 20002014.
JapanConsuming | 10.2014
SINGLE USER SUBSCRIPTION: Please respect our copyright
news & analysis

Aeons station mall model to launch
in Okayama
Aeons SC expansion has been unprecedented in the last 10 years, so much so that new
SCs pass in a blur. Aeon makes many claims for new malls, with each one presented as
the latest, mould-breaking new model, but in Okayama in December Aeon will genuinely
open one of its most important SCs in years. It is a model for its planned takeover of station
retailing across the country, making Aeon an ever more important partner for international
and domestic brands and retailers in food, fashion, and the home.
Aeon Mall will open a shopping centre next
to Okayama Station on 5 December. A sprawling
10 story building with almost as much parking as
retail space, the mall will have over 90,000 sqm of
sales space with 356 tenants. This is in addition to
Aeons own GMS and a plethora of cultural zones
including an event hall and even a TV station.
Already almost complete, the mall is vast, so big
that several nearby buildings have been taken
over just to handle the interviews for the thousands of staff to be employed there.
Okayama is not a thriving retail hub but it
does rank 18th in retail sales among the top 100
cities (see JCs Top 100 Markets report). Cross
Company is based there and has a swanky new
HQ; Tenmaya, the largest regional chain operating south of Kobe, is also there; and Daikoku Bussan is one of the regional supermarkets to watch.
Otherwise Okayama is very much a regional city,
quiet, serene and with the patches of decay that
are common to hundreds of regional municipalities around Japan.
Okayama is, however, one of the bright spots,
the gateway to Shikoku and the Chugoku region,
and a city clawing in investment and tourism
and, as a result, increasingly a magnet for migra-
Retail
Expenditure, Income, Savings
Demographics & Economy
Okayamas ranking in the top 100 markets

Ages 0-14
Ages 15-64
Ages 65+
DID Population
Single Households
Households inc 65+
Future Population 2025
Businesses per capita
Long-term Unemployed
Consumer Expenditure
Food
Housing
Furniture/Homeware
Apparel
Medical
Transport/Telecoms
Education
Consumer Incomes
Savings per Hhold
Sales per Store
Sales per capita
Space per capita
Sales Density
Food Sales
Apparel Sales
8.0
0.6
-6.4
0.4
11.3
-12.2
4.2
0.5
35.0
-4.2
-6.5
22.6
-6.6
1.4
1.6
0.9
-7.9
-8.3
10.3
16.3
10.1
13.7
-3.1
-26.6
-0.4
% Difference to Japan Average (Japan = 0): -100 to +100
Consumer Power Ranking

Population
Retail Sales
Large Store Space
Consumer Monthly Expenditure
Consumer Monthly Income
Source: JapanConsuming Report.
709,584
674,375 mn
682,438 m
274,737
471,802
30/100
21
18
16
78
75
tion from nearby towns and cities. For Aeon, it

presents virgin, close to competitor-free territory.
Okayamas population will not contract over the
next decade, and including the neighbouring
Kurashiki and Soja, has a combined population
of 1.3 million. It is already the only major city on
a 300km stretch of the JR West Shinkansen route
between Kobe and Hiroshima.
Okayama is also ripe for change. Despite its
stable population, retailing is limited. Tenmaya
Department Store and its attractive shotengai
offer a genteel shopping experience in the old
centre. Tenmaya is busy upgrading its main store
there to deliver a more premium shopping experience, including top notch luxury brands such
as Tods, to create a clear difference to Aeon, but
there is no other significant retail centre.
Takashimayas store just around the corner
from Aeon is ripe for closure or a complete rebuild, a drab building whose only value is as an
immersive experience of Japan in the 1960s.
Takashimayas response so far is to open its own
store in Aeon too, a food store called Takashimaya
Food Maison but it will likely close its main store
or convert it to a shopping and dining SC. The
OPA store next door already closed last month
and the adjacent Aeon-owned Vivre will close
soon. The fate of the 10,000 sqm Sanyo Ichibangai SC which carries brands like United Arrows
and Snidel is unclear, although it is hoping the
increase in traffic to the area the new hub for
Okayama will help float all boats.
The impact of Aeon Okayama will be huge
and extend beyond Okayama. Located next
to the station and the ramp from the highway,
the mall has a premium feel to the design, and
should draw shoppers, not only from the city itself, but from quite a distance across the region,
further decimating local trade in neighbouring
cities. Smaller Aeon malls of around 250 tenants
have footfall of around 18-20 million a year and
Aeon forecasts 20 million for Okayama, but this
looks conservative, as do the sales forecasts of
40 billion the 60,000 sqm Tenmaya had sales of
48 billion last year.
Aeon Okayama will house 240 tenants that
are new to Okayama and the surrounding region,
and will appeal to a diverse market, covering the
young women that frequent station buildings, as
well as families and seniors. Key to its success in
METROCITY OPENS POP UP

STORE IN TAKASHIMAYA
Italian handbag brand Metrocity
opened a pop up store in Takashimaya Shinjuku last month prior to
a full scale launch in the Japanese
market. Established in 1992 in Florence, Metrocity is already well-established in South Korea where it has
100 stores and will now start expansion here. The main target is women
in their 20s to 40s selling bags, shoes,
and accessories with prices of around
60,000-70,000 for handbags.
YAGI TSUSHO SIGNS HELEN
KAMINSKI AND LORENA
ANTONIAZZI
Yagi Tsusho has signed a distribution deal with Australian hat brand
Helen Kaminski. Helen Kaminski is
known for its handcrafted hats made
from raffia but also now sells accessories, including handbags and some
apparel. Started in 1993, the company was bought by US hat business
Bollman in 2007 and in 2008 opened
a store in Roppongi Hills. The agreement is a joint venture 51% owned
by Yagi and will sell both the main
womens line and the mens Kaminski
XY label. Helen Kaminski has been
selling to Japan for 18 years, but
now wants to expand through retail
stores as well as wholesale. Yagi has
also signed a deal with Italian high
end knitwear brand Lorena Antoniazzi, owned by Sterne International
in Perugia. Yagi has already started
wholesaling Lorena Antoniazzi in
Japan, but wants to invest in department store concessions and stand
alone stores. Yagi will open the first
store in Aoyama next April. Cashmere
sweaters will sell for around 100,000
and jackets and coats from around
120,000.
SINGAPORES CROESUS
EXPANDS IN JAPAN
Singapore retail property giant Croesus Retail Trust plans to expand its
presence in the Japanese market
over the next two years. It is looking
to buy more suburban malls and refurbish them with a particular focus on
non-retail tenancies. It notes the trend
towards new suburban SCs being
designed as community hubs, with
a mix of retail and services including
community needs such as medical
clinics, libraries, kindergartens and
news & analysis
dining, and sees an opportunity to

convert older SCs to match. Croesus
recently acquired Ones Mall in Inage,
Chiba for 11 billion, its seventh SC
in Japan, a portfolio with a total asset
value of around 82 billion.
ITOCHU SHOJI SIGNS
CASABELLA
Tapping into the growing demand for
designer home gadgets, Itochu Shoji
has signed US cleaning and kitchen
goods brand Casabella for the Japanese market. Founded in 1988, Casabella products are now sold in more
than 80 countries. Day to day distribution will be handled by Doshisha, a
wholesaler of a variety of household
product categories including apparel,
bags and jewellery, and one of Itochus affiliates in Osaka, which also
sells brands like Havaianas (another
deal with Itochu) and British mug
brand Dunoon.
KINTETSU DOWNGRADES
PROFIT FORECASTS AS ABENO
HARUKAS FLOPS
Kintetsu Department Store has
revised its forecast for FY2014 to
February down from a previous 4.2
billion net profit to a much more
modest 1 billion. The 70% reduction comes on the back of poor
performance at the recently rebuilt
Abeno Harukas shopping complex
in southern Osaka. Sales forecasts
for the main Abeno store have also
been reduced by 28 billion to 117
billion, with total sales for the retailer
now 17 billion lower at 287 billion.
Kintetsu blames the tax increase in
April with HQ sales down 20% on
2013 for Q1, but, in addition to excess
department store capacity in Osaka,
the store is simply poorly done. While
the building itself is brand new and
glitzy, it is as if Kintetsu preserved its
old dreary store in a warehouse and
installed it as is into the new build.
Apart from the shiny escalators and
new lighting, it is like being back in
1980s Japan. Kintetsu has displayed
a stunning lack of imagination in store
planning and tenant selection, a study
in contrasts with Hankyu Umeda. And
the competition isnt helping. Although
Hanshin Umeda is just beginning its
own rebuild and is due to finish its first
phase in 2018, having had to wait for
the completion of its Hankyu Umeda
becoming a significant player in station retailing to encourage shoppers back into the centre in
will be Aeons capacity to maintain footfall over what remains one of the more prosperous cities
the long-term, and avoid the fate that has befall- in the northern island. Takasaki is Gunmas largest
en some of its out of town SCs. So far the line up city and Aeon will again take over the station area
looks strong with the street level alone offering right next to Takashimaya and the 104 tenant
the kind of retail entertainment usually found in Montres SC.
Tokyo and Osaka: Zara Home, Urban Research, R.
Aeon also continues to increase the numNewbold, H&M, Ciaopanic, Freeks Store, Takashi- ber of slightly more premium station-based SCs
mayas Food Maison and so on, with the likes of near the capital. The latest to open will be Aeon
Charles & Keith and Zara on the second floor, and Tamadairanomori at Toyoda Station in Hino in
Tokyu Hands above.
November. The 130 tenant 25,000 sqm SC will ofFor Aeon the new station focus marks a de- fer a generous amount of outside space, includparture from its legacy bid for suburban and out ing a 150 sqm lawned play area, optimistically
of town dominance. While it has already opened called Forest Garden, that will be popular with
some station-based SCs, Okayama is the flagship shopping parents after school. As popular will be
model for the future, twinning the benefits of a Picard, the French frozen food brand, which will
station location with the scale of Aeons suburban open in Japan for the first time. JC
SCs. Stations used to be the fiefdom of department stores, railway-owned
station buildings and fashion
SCs like Parco. Aeon plans to
take their place.
Other Aeon station SCs are
already being built, including
Takasaki in Gunma and Asahikawa in Hokkaido. Aeon JR
Asahikawa is located right next
to the station near to a Seibu
that houses Louis Vuitton and
other luxury brands. It will
open next Spring with 47,000
sqm of sales space, and is being built in cooperation with
the local governments city revival committee. Plans also call
for a new pedestrianised zone Aeon Okayama, at least part of it
Brunello Cucinelli Japan expands

Luxury brand Brunello Cucinell is now in charge of its own distribution in Japan. Sales are
up and much needed investment in upgrading department store concessions will continue
this year culminating in the opening of a flagship in Ginza in Autumn 2015.
Brunello Cucinelli Japan was established in
November 2013 as a joint venture between the
Italian luxury brand and Itochu Shoji, but with
75% of the stock owned by Brunello Cucinelli.
Woollen Shokai, which had previously distributed
the brand, continues to wholesale womenswear
and will retain the rights through 2015.
Brunello Cucinell, famous for both its very high
end product and its ethical approach to business,
gives away 20% of its profits to a foundation and
pays above average wages to staff housed in the
village of Solomeo in Umbria.
The Japanese business will see sales of 4.5
billion for the year ending December, but next
year expects sales to climb to 5 billion. Part of
the growth will come from a new flagship store
in Ginza planned for Autumn 2015, but rather
than expand store numbers at present, Brunello

Cucinelli will instead negotiate bigger concession spaces in order to carry its increasingly large
collections. While originally a cashmere knit business, Brunello Cucinell has expanded into a lifestyle brand selling a diverse array of apparel and
accessories.
Currently there are 20 outlets in Japan including a stand alone store in Aoyama. After repositioning existing concessions over the next year,
Brunello Cucinelli plans to invest in stand alone
stores in key cities in 2016. With larger stores, the
Umbria-based firm hopes to increase sales of
menswear and accessories. Currently womenswear makes up 70% of sales and accessories just
15%. Over the next few years it hopes to raise accessory sales to 20% of turnover. JC
news & analysis

Isetan-Mitsukoshi: small store expansion
continues, emphasis on clearer targets
Isetan-Mitsukoshi continues to take direct control of parts of its sales floors and expand
its new network of small format, specialty retail stores. In its department stores, new sales
areas are being turned into self-managed concessions and mini shopping centres in order
to clarify the positioning of each branch to better suit local traffic. The latest areas include
a select shop for the over 60s in Nihonbashi and a mini SC for working women in Kyushu.
Meanwhile, specialty chain MI Plaza will see a significant boost to store numbers. All of this
means opportunities for overseas brands.
In the last two years Isetan-Mitsukoshi has
become one of the fastest developing retailers in
the country, increasing the pace of small specialty
store expansion as well as revamping its department store sales areas all with clearer customer
targeting in mind.
Mitsukoshi Nihonbashi opened a new storemanaged sales floor last month called Le Style
Lady to appeal to older women interested in
fashion. Le Style is a sales floor brand used at Isetan Shinjuku selling high fashion merchandise
selected by Isetans top buyers. The Nihonbashi
version, perhaps fittingly, is firmly targeted at the
over 60s, while still focusing on distinctive fashion
labels and designs.
Located on the 4th floor, the 40 sqm space
mixes a wide range of accessories such as handkerchiefs and umbrellas with apparel, and the
display is designed to show customers how to
coordinate items to best effect. Perhaps as important, the large and comfy fitting room area also
includes a large dining table and chairs dubbed
the chatting space, where customers can have a
natter and read a selection of magazines too. 26
brands are sold.
Le Style Lady is just one more example of the
use of directly managed sales floors to sharpen
the profile of each department store branch to fit
its target market. The Isetan Shinjuku childrenswear floor will introduce Le Style Kids next Spring,
including brands like Stella McCartney, Little Marc
Jacobs, Bape Kids and Mina Perhonen. Another
area called Tasteful Style will sell a mix of apparel,
accessories and household items for mums and
kids with brands such as Bluebird Boulevard and
Athena New York Girl. An event space called Park
will offer workshops, a kind of mini, upmarket

Kidzania, alongside a healthy juice bar and a high
end hobby zone offering science, art and cultural
toys, and tools. In December a maternity area offering designer maternity apparel will also open.
In similar vein, Mitsukoshi Fukuoka opened a
new floor in its basement last month called La
Chic, dedicated to young working women complete with its own website (www.lachic-fukuoka.
jp). Mitsukoshi says research showed local working women tended to wear more casual apparel
to work than those in the capital, and it saw an
opportunity to create a dedicated space for this
segment. The 3,100 sqm space on the basement level houses 58 specialty store tenants. Apparel makes up just 35% of the mix, with the rest
spread across accessories, cosmetics, home and
other lifestyle merchandise, as well as lunch and
after-work dining, all split across three distinct
zones. Many tenants are new to Kyushu and at
least six completely new stores.
Outside department stores, Isetan-Mitsukoshi
will continue to expand its small format chains
including nine new MI Plaza stores by November
2015, and new high end select shops (see box
below). Many MI Plaza stores will replace Mitsukoshis old satellite stores, but five will open in
Aeon SCs. MI Plaza stores come with a high level
of service, attractive and distinctive store designs,
and a community space with kitchen facilities
to make them upscale neighbourhood community hubs. Isetan-Mitsukoshis small format store
division currently operates 80 stores nationwide,
but through 2016 expects to double this to 150
stores, and will also convert the remaining 55 satellite stores to the MI Plaza banner at the same
time. JC
ISETAN-MITSUKOSHI TO OPEN IN TOKYO MIDTOWN

Isetan-Mitsukoshi has announced plans to open adjusted to fit SCs, allowing the department store to
a 1,000 sqm select shop in Tokyo Midtown in Rop- take its wares and service to new customers.
As a chain operation, the small format business
pongi next Spring. This is one of a series of smaller
format select shops planned for key city centre SCs should also be more profitable than department stores,
across the country; it has already announced a 3,000 especially given the opportunity to sell its own private
sqm store in Nagoya slated for next year. These will brands similar to the model of United Arrows and
be essentially larger versions of the airport stores Beams, but more upscale. Isetan is keeping mum
opened recently. Exploiting the product selection and about its plans for the store, but womens apparel and
merchandising skills of buyers at Isetan Shinjuku, accessories are likely to make up the bulk of product,
the select shops will be positioned similarly to Isetan while maintaining a similar diversity of merchandise
Shinjukus fashion floors but in a format that can be to Isetan Haneda.
sister store across the road, all other

major department stores in the city
completed their own refits and expansion long before Kintetsu. Kintetsus
most recent addition of the Solaha
SC annex adjoining the department
store has also suffered due to poor
branding and positioning, meaning
most young people continue to flock
to Cues Mall across the street.
POST OFFICE RENEWS STORE
CONCEPTS, MOVE TOWARDS
RETAILING
Japan Post has opened a new store
concept in the underground area in
Tokyo Station on the Yaesu side. The
new store features a lot of whites,
wood fittings, and lower than usual
post counters that, the company
says, will appeal to female customers. More importantly the store is
170 sqm with lots of room to display
a wide range of gift samples from its
own direct mail catalogues now being
offered in a new venture with IsetanMitsukoshi. Japan Post is planning to
move away from the old, functional
post offices of the past and towards
genuine retail outlets, while maintaining the standard postal, insurance
and finance services of its core business. During hours when the post
office part of the store is closed, the
rest of the space will concentrate on
sales events. Japan Post will open
the first post office featuring a powder
room in Kanazawa in November, and
is planning another concept store in
Fukuoka for next Spring, this time as
the first post office designed to attract
family shoppers.
UNIQLO TO DOUBLE
CHILDRENSWEAR SALES
Uniqlos childrenswear is popular for
its quality and reasonable prices yet
to date Fast Retailing has never really
exploited the potential in a market
still short of exceptional nationwide
childrenswear chains. It now plans
to fix this, increasing the number
of stores carrying childrenswear by
60% and the volume of apparel by
50%, in the hope of doubling sales
of childrenswear this year. Currently
426 stores carry childrenswear,
about half the domestic chain, but
this will be expanded to 680 stores
and the number of SKUs from 300 to
450. While many items were unisex
news & analysis

Start Today cancels free shipping
designs in the past, more distinct

ranges for boys and girls will be created. More collaborations with famous
characters are also planned including
Disney characters, Snoopy and Hello
Kitty. At the same time, Uniqlo will
expand childrenswear sales to 16
countries. One of the best places to
view the new ranges will be Uniqlo
Kichijoji, a new 2,700 sqm store which
opened October 3 complete with a
500 sqm childrenswear area.
GINZA6 BEGINS TENANT

SELECTION
J Front Retailing and its partners
have begun selection of tenants for
its upcoming SC in Ginza. Replacing
Matsuzakaya Ginza, the 46,000 sqm
SC will be the largest in the area, and
looks like being the most upmarket
too. Some headline tenants have
been confirmed already, but the space
will have 250-300 tenants in total and
a website has been posted to help
select tenants (ginza6.tokyo), which
is even in English. The building, operated by J Front, Mori, L real Estate
and Sumitomo, is expected to open
in November 2016 catering to both
affluent local residents as well as the
fast-growing tourist traffic the basement will include a tourist bus terminal
and tourist information centre and
will also house the Kanze Nohgaku
Theatre and offices. The retail space
is being designed by Gwenael Nicholas, a Tokyo-based French designer
with a host of luxury store projects to
his name, including Maison Moynat,
Berluti, several Fendi stores and
Louis Vuitton Townhouse.
HOUSEHOLD FINANCIAL ASSETS
RISE AS CAUTIOUS CONSUMERS
SAVE
Despite the mixed messages from an
enthusiastically bullish government
backed up by slavering export manufacturers on the one hand, and wage
starved and tax pressed consumers
on the other, the latest statistics show
that the average household is now
richer than it has ever been before.
For the April to June quarter, total
financial assets for all households
(including the large sums held by
senior citizens) came in at 1,645 trillion, the highest on record and 2.7%
higher than in 2013. The volume of
high risk assets rose to 82 trillion.
Start Today introduced free shipping in 2012 in the face of growing competition from
Amazon, which had already lured some of its key merchants like United Arrows to its mall.
The service was always going to be expensive for a business that relies on the consignment
model, and last month it capitulated, introducing charges again for low value shipments.
Instead, however, it is offering free shipping for same day delivery around Tokyo, the first
time an online store has introduced such a service.
Start Today has cancelled its free shipping in regional cities too a neat solution for a busipolicy in the wake of rising costs. As of October ness that will never be able to match the logistiorders of less than 3,000 placed on Zozotown cal power of a general shopping portal.
will carry a 350 shipping charge. The Zozotown
By cancelling the nationwide free shipping
operator introduced free shipping in November policy, Start Today says cost control will improve
2012 in an effort to stem the loss of customers markedly and allow funds for more marketing.
to Amazon which offers free shipping on any It is forecasting transaction values up 15.5% in
order. The move helped increase membership FY2014 to 132.4 billion and operating profit up
and sales, with transaction values rising 19.6% in 10.7%.
FY2013, exceeding 100 billion for the first time.
Start Today continues to experiment with new
Zozotowns membership remains the jewel in ideas for growth. During FY2013 it opened and
its crown, with the number of active customers then closed its younger market mall, La-Boo, due
(who made a purchase in the last year) rising from to poor sales, but is hoping for steady growth of
1.7 million to 2 million. The percentage of so- its used clothing business, Zozoused sales more
called guest buyers (those who purchase with- than doubled to 2.3 billion last year and are exout registering) has risen sharply, from 700,000 to pected to double again this year. It also continues
1.2 million, making a total of 3.2 million, 58% of to rapidly increase the number of fashion stores
whom are women, with an average age of 31.4. represented through Zozotown, something it
Smart phone purchases exceeded those from can do easily since it takes no risk on inventory for
PCs last year, hitting 52.7% against 45% for PCs.
the bulk of the merchandise sold, increasing from
However, the shift towards lower ticket items 492 stores to 621 last year.
on Zozotown meant that the burden of free shipAn update to the mall interface is also
ping had become a significant cost, especially planned, and given the growing dominance of
for a business with none of the logistical reach of smartphone sales, high function apps will also
Amazon. During last year, average per item pur- be introduced. The social shopping app, Wear,
chase values for its active customers fell 3.1% to no longer allows in-store scanning, but Start To5,773 while shipments ballooned from 7 million day claims it is driving some sales to Zozotown
in FY2012 to 9.3 million. Although Start Today in- Start Today bought out a similar service called
creased operating profits by a very healthy 45% in Fukulog earlier in the year to boost the platform.
2013 to 12.4 billion, shipping costs as a percent- It launched Wear in Taiwan in May and as of Ocage of transaction values increased from 2.9% to tober is expanding Wear to Europe, the US and
3.2%. The additional cost was paid for by a 3.1% other markets, a total of 21 countries. It has tied
reduction in marketing expenses, in particular with key local e-commerce retailers like Net-athe cancellation of TV spots.
Porter in the UK, Urban Outfitters and Asos to enWhile the cancellation of free shipping will sure it has brand coverage, as well as to generate
be a gift to Amazon, Start Today has introduced affiliate commissions. JC
free same day shipping for the Tokyo area down
from 500 previously. This
is a more affordable move Start Today, Transactions and Customers, FY2007-13
for Start Today given its
120,000
4,000,000
own DC is in Chiba, and by
focusing on a smaller area
90,000
3,000,000
where 35% of its customers are based, can gener60,000
2,000,000
ate some economies of
scale. Later on it hopes
30,000
1,000,000
to offer a free same day
delivery service in Kansai,
0
0
and then by tying up with
2007
2008
2009
2010
2011
2012
2013
hundreds of apparel bouTransaction Value
Customers
tiques across the country,
Source: Company Reports; JapanConsuming.
arrange for similar services
Customers
Transaction Values mn
news & analysis

Shosha invest in e-commerce
in distribution with a total capital value of around

1.2 trillion, and those of Mitsui and Mitsubishi
alone will account for 400 billion of this.
Mitsubishi is currently looking at building a
large scale DC in Kyoto and both trading houses
have investment plans that should easily match
those of Itochu and Sumitomo over the next five
years.
EC retailing is expanding rapidly, with various
estimates putting the market close to 20 trillion
by the end of 2015 at the latest. Amazon Japan
remains the largest single player by a significant
margin and it continues to set customer expectations with free, rapid delivery, as well as low prices and excellent search functions and product
range. It opened its largest DC so far late last year
in Odawara in Kanagawa Prefecture, with 200,000
sqm dedicated to Amazon and its EC mall tenants
alone. Rakuten is number two, and it too is now
moving rapidly to expand directly controlled distribution facilities. Everyone else needs to keep
up, but for any company targeting consumer
markets, rapid, small volume deliveries will be key
and the demand for state of the art logistics facilities will only continue to rise. JC
Lawson to acquire Seijo Ishii

Lawson will add its second major acquisition for the year this month, taking over leading
upscale supermarket chain Seijo Ishii. It is no surprise that Mitsubishis convenience store
subsidiary should want to add another supermarket banner to its portfolio, although
Isetan-Mitsukoshi is disappointed to have been overlooked.
Lawson will acquire Seijo Ishii this month for a
reported 55 billion. Seijo Ishii is the leading upscale supermarket chain in the country by scale,
and has been without a proper operating owner
since 2007 when Rex Holdings (now Reins International) sold off its interest to Mitsubishi-backed
fund, Marunouchi Capital, for a reported 42 billion.
Seijo Ishii was established back in 1927 and
currently operates around 110 stores. It concentrates on high end deli items and sells a high
proportion of imported brands alongside many
exclusive products. Despite problems with the
management of previous owners, sales at the
chain are also good, with FY2013 the fifth straight
year of sales growth. In FY2014 the chain is expecting another 10% increase to around 60 billion, with operating profit also forecast to grow
36% to 4.5 billion.
The rapid growth in e-commerce is leading to huge demand for state of the art distribution
facilities and support. With Amazon Japan leading from the front, all the major players, and
even the smaller ones, are now expected to provide short lead times at very low cost to the
final customer, but few have the volume to justify their own, large DCs, creating a growing
market for logistics providers. Enter the four big trading houses.
The largest four trading houses are planning
major investments in distribution systems designed to support Japans growing e-commerce
(EC) market. Itochu will spend some 100 billion
on new logistics facilities over the next three
years, and Sumitomo is preparing to spend 50100 billion.
Itochu has established a joint venture with a
Singapore-government owned investment fund
tied to Temasek Holdings. The new business will
begin with a 20 billion investment in a new logistics facility in Sakai, south of Osaka. The centre
will be around 130,000 sqm and have capacity
to handle EC supply for around 12 companies.
Itochu says it will be targeting tenants with long
term growth potential.
Sumitomo established a private fund to
spend on similar facilities this previous Spring. By
the end of next year, it plans to have invested 50
billion with an aim to expand to more than 100
billion in the medium term.
Meanwhile, Mitsubishi and Mitsui have both
established REITs for the logistics sector. There
are already 46 publicly listed REITs with interests
Rumour has it that both the serial acquirer,

Aeon, and Isetan-Mitsukoshi were also keen to
buy the chain. Isetan-Mitsukoshi wanted it so
much it reportedly offered a joint deal rather than
lose out to Lawson entirely. Its own upscale supermarket chain, Queens Isetan, has been unable
to move out of the red for some time, partly because of lack of volume.
Seijo Ishii would have solved its problems;
while most supermarkets operate on gross margins in the 20% range, with even Yaoko at around
30%, Seijo Ishii now achieves around 40% with
operating margins of more than 6%. Further, 40%
of its merchandise is exclusively manufactured
for Seijo Ishii alone what most other chains call
private brands. In the end, however, the decision
to sell to another Mitsubishi affiliate with existing
interests in similar formats should make a lot of
sense.
Higher savings does not signify a

booming economy however; wealthier
households have benefited from the
strong stock market, and the weak
Yen has helped some with overseas
investments, but more than half the
figure is made up of savings as even
average households, worried about
the future, conserve their income.
Further stockpiling of savings could
well damage the governments plan
to encourage more spending.
IKEBUKURO GETS NEW SC
A new SC opened in Ikebukuro last
month behind Yamada Denki. Operated by Eima which had previously
used the land for parking, the new SC
is called Wacca Ikebukuro. The 7,500
sqm SC includes 27 tenants mixing
fashion such as Sports Lab by Atmos
and many services such as spas, a
pet centre and a cooking studio.
DUTY FREE SALES UP 30% AT
TAKASHIMAYA AND 50% AT
TOKYU
Takashimaya says tourist sales rose
30% in 1H2014. Although total duty
free sales amounted to just 7.2 billion in FY2013, the fast growth has
encouraged the department store
chain to add more duty free counters at its stores, with new counters
opening at its Nihonbashi, Shinjuku,
Yokohama, and Kyoto stores this
month. Takashimaya will also introduce a tax free system for its smaller
stores developed by Global Blue, a
tax free shopping business. Other
department stores are also investing in services for tourists. As well
as Mitsukoshi Ginzas duty free store
announced last month, Tokyu will
open a tax refund room in its three
Shibuya locations and Sapporo. It
has also opened a souvenir shop in
Shibuya. Tokyu says tourist sales at
the three Shibuya locations increased
50% last year.
AGELESS FASHION FOR
MOTHERS AND DAUGHTERS
Hakuhodo recently surveyed 3,708
men and women aged 40-60, asking
who they liked to spend time with. Both
men and women ranked spouses first
and children second, but while more
than a fifth of women enjoyed spending time with kids, the same was true
news & analysis
for only 7.3% of men worryingly,

men in their 40s actually preferred to
shop with their own parents. Women
enjoy shopping time with daughters,
and the older they get, the more this is
true, with 27.7% of women in their 60s
shopping with daughters compared
to 13.9% of women in their 40s. For
daughters, spending time with mum
is about relaxing and togetherness,
while for mothers, daughters advise
on the latest fashion trends and didnt
make them worry about how much
they spent. Many new malls and even
department stores have adjusted their
positioning to attract more women
aged 40 to 60, but the clearly successful ones have taken care to
include offers for women in their 20s
and 30s too. Chains are increasingly
offering ranges for this so-called ageless fashion trend. There are even a
number of chains that are including
girls clothes too so that grand-daughters can take part as well.
SOGO TRIALS VIRTUAL FITTING
ROOMS
Sogo Seibu installed its first virtual
fitting rooms in Sogo Omiya last
month. This follows the high profile
trial launched by Urban Research
earlier in the year (JC1407). Sogos
iteration is being used to promote
its increasingly high profile private
brand Limited Edition. The system
has been installed through Toppan
Printing and allows customers to try
on four styles and 28 colourways in
an instant. Unlike Urban Researchs
model, which allows social networking of customer pictures, Sogo has
catered for its older customer base by
allowing colour printouts of outfits with
product numbers on them, making it
easy to order later from Sogo Seibus
online store one more example of
Seven & Is efforts to create a seamless ominchannel retail experience.
JR EAST RENOVATES MITAKA
STATION SC
JR East continues its programme of
overhauling key stations in the Kanto
region, boosting revenues from shopping and entertainment by making
each station a local community hub.
The latest is Mitaka Station in western
Tokyo which has been rebuilt complete with a new SC. The SC area
has been rebranded to Atre Vie from
Lawson acquired Shop 99 several years ago,

turning it into the largest discount supermarket
chain in the country with more than 1,000 stores
in operation. It set up a completely new supermarket banner, Lawson Mart, in February, and
has spent the past three years building a growing
agricultural supply base from its own directly run
farms.
The Seijo Ishii banner will add a new, high
volume operation at the top end of the market.
Unlike with Shop 99, Lawson plans to retain the
current Seijo Ishii branding although some cur-
rent and new Lawson private brand lines will be

introduced into the supermarket chain. It will also
consolidate parts of Seijo Ishiis distribution network into Lawson, improving profitability.
This is the second major acquisition for Lawson this year following its buyout of United Cinemas in August, the third largest operator of
cineplexes in Japan. That deal was designed to
expand Lawsons growing omnichannel operations, linking with a previous purchase of HMV to
offer digital music and ticket sales for movies and
other events. JC
Working population declines by 4

million in 5 years
Depopulation in Japan often seems like old news, but the real consequences are only
now beginning to be fully understood. Already medium sized cities in the outer regions,
especially in the north, are being hit by population decline so rapid that theres no
longer enough money to sustain even some basic services, and it is about to get worse.
Depopulation does not just mean fewer consumers, it also means higher local taxes, further
reducing consumers capacity to spend on non-essential items. For overseas firms working
in Japan its increasingly important to understand not only where the problem areas will
be, but equally where opportunities will arise in a small number of growing municipalities.
The severity of Japans long term population
decline is becoming clearer thanks to ever more
striking evidence. Tokyo, Osaka and some other
key cities will continue to grow thanks to an influx of new residents escaping the decimated regions, but the spiralling depopulation elsewhere
will mean removal of local services and withering
markets. This whole phenomenon is the subject
of JapanConsumings latest report, Japans Top
100 Consumer Markets.
Japans population peaked at 127.04 million in
2008 and has dropped by 1.08 million since then.
This seemingly minor change is not the problem,
at least for now. Much more significant is the 3.87
million fall in people aged 15-64, close to 1% of
the total. In other words, the working population
has fallen by the equivalent of the population
of Yokohama, Japans second largest city, in just
five years. Along with a corresponding 4.18 million increase in the number aged 65 or older, the
burden on remaining workers is growing rapidly.
One of the most striking changes is that, by
2040, the number of women aged 20-39 will
halve in 896 of the 1,800 or so municipalities
across Japan, making these areas almost barren
in a literal sense. Birthrates overall are reportedly
lower in countries such as Taiwan and Italy, but
Japan, which already has close to a quarter of
its population at or above retirement age, is expected to drop to even lower levels over the next
20 years. Nobody is willing to come out and say
it, but the decline is almost certainly irreversible
already.
In April, the government introduced new

funding and initiatives to support cities that had
lost 20% or more of their population. Hakodate in
Hokkaido was the first city to receive this support,
with its population falling from 340,000 in 1985 to
just 279,000 today, and forecast to fall to 170,000
by 2040. Hakodate and cities like it are also experiencing a hollowing out, with city centres unable
to survive given the fall in customer numbers,
coupled with the now ubiquitous access to shopping malls just a short car ride away in suburbs
or neighbouring locations. While Aeons efforts to
open new SCs in city centres will help in some
cities, even these new developments will simply
draw custom away from a wide surrounding area
(see Page 3).
Hakodate likely represents how other cities
will fair in the next 20 years. As noted in JCs Top
100 Markets report, it is Hokkaidos third largest
city, but its fishing and tourism-based economy
is shrinking along with the population. It is expected to have one of the biggest contractions
in population over the next 20 years, exacerbated
by having the second highest proportion of over
65s in the country. Already the lack of working
population has meant a rapid drop off in local
taxes, and city infrastructure, even to the point of
the water supply, has been hit by lack of investment. Some 30% of the water supplied to Hakodate is currently being lost through leakages,
forcing the local water authority to request a 35%
rate increase to pay for repairs. Faced with a beleaguered electorate, the city government only
approved an increase of half that, but even then
news & analysis

way need to refocus on service industries even
for export markets, and push further and faster
in terms of adoption of cutting edge technology
to make up for labour shortfalls. This again will
mean that although many regional cities suffer,
some places will remain very affluent and have a
growing importance in the market as a whole. Its
important to identify where those will be. JC
Expenditure, Income, Savings
Demographics & Economy
Hakodates rapid decline in Top 100 Markets
Retail
Hakodate
a 17% increase in water rates is a good example

of how rising costs will have an impact on consumption.
In other words, depopulation does not just
mean fewer consumers, it also means the risk of
rising local taxes, further reducing consumers capacity to spend on non-essential items.
Needless to say, but consumer goods companies and retailers are unlikely to hang around
as the rot sets in, exacerbating the decline even
further. The government, while in the short-term
seeking to prop up the national economy, is now
just beginning to realise that, longer term, fewer
people will mean significant unavoidable costs.
While the problem of regional depopulation
is overwhelming, it also signals how consumer
markets will change over the next two decades.
People will increasingly migrate to larger urban
areas where basic services survive and are cheaper, and these will remain thriving markets. Choice
of location and geographical segments will become increasingly important, and overseas firms
in Japan must be aware not only of the problem
areas, but also of where opportunities lie. This is
true when choosing where to open new SC tenancies or where to spend on A&P, but equally
to understand where the pockets of growth are
likely to occur in the regions.
On a more political note, the situation is now
so near to crisis point there is an outside chance
a future government may have no choice but to
allow in more overseas immigrants, but will any-
Ages 0-14
Ages 15-64
Ages 65+
DID Population
Single Households
Households inc 65+
Future Population 2025
Businesses per capita
Long-term Unemployed
Consumer Expenditure
Food
Housing
Furniture/Homeware
Apparel
Medical
Transport/Telecoms
Education
Consumer Incomes
Savings per Hhold
Sales per Store
Sales per capita
Space per capita
Sales Density
Food Sales
Apparel Sales
-17.3
-3.5
19.6
27.9
12.6
9.8
-12.4
15.3
23.9
-24.7
-16.7
-45.0
-16.5
-35.4
-19.3
-49.4
-67.2
-4.4
-7.7
-16.9
2.8
20.2
-14.5
18.9
-19.3
% Difference to Japan Average (Japan = 0): -100 to +100
Consumer Power Ranking

Population
Retail Sales
Large Store Space
Consumer Monthly Expenditure
Consumer Monthly Income
279,127
247,585 mn
274,746 m
215,745
491,572
95/100
76
73
65
100
53
Source: JapanConsuming Report.
Sazaby sells Starbucks stake

Sazaby is selling its majority stake in Starbucks, a business that transformed Sazabys
turnover, although it still managed to retain its identity as a quirky fashion to interiors
business. By selling off Starbucks Japan, it can return to its roots, but still with plenty of
potential growth from chains such as Flying Tiger. It will add more overseas brands, and
with its bulging coffers and record of past successes, would make a great partner.
Starbucks has agreed to buy the 60.5% of Starbucks Japan it doesnt own. Starbucks Japan has
operated as a joint venture between Starbucks
and Sazaby League since 1995 but over the summer, Sazaby asked the US firm to buy its stake in
what is now a 1,000 store chain with 25,000 workers and sales of 125.6 billion last year.
The two firms agreed to value Sazabys stake
at 55 billion or 965 per share. This will give Starbucks 79% of the Japanese arm and it will then
offer cash for the remaining 21% owned by public shareholders and option holders, at a price of
1,465. By June 2015 Starbucks is expected to
have full control.
Sazaby League wants to focus on its lifestyle
consumer goods business, but the timing also
looks good for a sale given that Starbucks is already well-represented across Japan, coffee prices are rising, and convenience stores are piling
in with cheap and very popular takeaway coffee

too. Sazaby is expected to use some of the funds
to pay off debt incurred from its MBO in 2011, as
well as sign new brands for the Japanese market.
Recent signings include Rachel Ashwell, Raquel
Allegra and Malie, the Hawaiian cosmetics brand,
but it is also having great success with its Ron
Herman franchise, and its record as a partner for
foreign brands and retailers is excellent.
One enticing project is the Flying Tiger chain
of knick knack stores, a business that looks set
to become a major source of growth for Sazaby.
Flying Tiger opened its first store in Japan in July
2012 and signed a joint venture deal with Sazaby
a year later. It began ramping up expansion from
this summer, opening five stores in two months
and now has 10 stores in Japan. Last month it
opened within Printemps Ginza, Machida Tokyu
Twins and Marui City, Yokohama. JC
Dila with 46 new tenants and will open

this month.
BIC INTRODUCES FREE WIFI FOR
TOURISTS
Bic Camera, the number two consumer electronics chain, introduced
free in-store wifi for tourists and new
tax free sales services at the beginning of the month. Tourist shoppers
will be able to use unlimited wifi
for free in Bic stores even without
making a purchase as Bic hopes to
attract more overseas shoppers and
get them to stay longer. To use the
service, shoppers will need to visit
one of Bics tax free support counters
for an ID and password but will then
have access to some 50,000 base
stations run by NTT West Japan, with
Bic footing the bill from NTT. Bic is
advertising the new service in hotels
and will rollout to Kojima, Sofmap and
other group stores in the near future.
The company says it has seen a large
increase in tourist shoppers looking
for gifts. It has expanded its range of
Japanese made whisky by 70%, and
increased its stock of sake by more
than five times. Kojima, which Bic
acquired two years ago, has introduced tax-free counters at 35 of its
stores for the first time. The Japan
Tourist Bureau says that between
April-June this year the average tourist spent some 143,942 per visit, an
increase of 5.7% on 2013.
SEIYU ANNOUNCES PRICE GUARANTEE FOR VEGGIES
Late in September Seiyu announced
price matching guarantees on fresh
produce, similar to the ones it already
offers on non-food and packaged food
products. This is an unprecedented
move in Japan where fresh products
vary hugely in price and often change
day to day. Customers will need to
show evidence through newspaper
flyers that similar products are being
sold more cheaply elsewhere and
Seiyu will match the price. Competing supermarkets reported they were
unimpressed by the news, expecting any impact to be limited to a few
outspoken customers willing to make
an issue of it. What these companies
dont understand is Seiyus determination to offer EDLP (Every Day Low
Price), guaranteeing lower prices
regardless of when a customer visits.
10
news & analysis

Familymart signing more crossretail deals
Given that few Japanese consumers expect this kind of consistent,

low pricing, and are used to having
to switch chains week by week to
find the best current deals, Seiyus
initiative is another step in changing
mindsets rather than a major attack
on competitors.
IMPORT BRAND MARKET UP 20%

Yano Research claims the import
brand market overseas brands of
apparel and accessories expanded
20.3% last year to 1.17 trillion.
Growth came from increasing consumption by affluent consumers,
especially at department stores and
branded boutiques, alongisde the
growing number of tourists who are
also increasing their spending per
head as store marketing to tourists
improves. Yano expects an 8.4%
increase in 2014.
AEON TO ACQUIRE RED
CABBAGE
Aeon will acquire iconic regional
supermarket chain, Red Cabbage
this month. Red Cabbage operates
41 stores from Yamaguchi Prefecture, spreading down to the northern
prefectures of Kyushu. Sales to July
2013 stood at 30.7 billion, making
it one of the largest operators in the
area. Aeon will acquire 86.7% of outstanding stock and make Red Cabbage a wholly owned subsidiary at
a cost of around 1 billion. This will
further strengthen Aeons regional
operations, and is the latest example
of a smaller regional chain choosing a
new, nationwide parent rather than be
forced into submission by increased
competition.
SEVEN & I JOINS WITH FANCL
FOR NEW PB
Seven & I will begin sale of a cosmetics private brand line developed
jointly with Fancl in November. The
new skincare range will go on sale
nationwide in both Seven Eleven
convenience stores and Sogo Seibu
department stores. The first cosmetics to appear in Seven & Is expanding
range of PBs will target women aged
20-40. It uses natural ingredients to
ensure skin compatibility, as well as
drawing on Fancls use of vitamin E
and the currently trending Argan Oil.
With Seven Eleven and Lawson adding around 1,000 new stores a year, and Lawson rapidly
diversifying out of just convenience store retailing, number three chain Familymart is
fighting to keep pace. To make up for this it is now looking at joint venture tie-ups to allow
it to expand its brand and supply chain more widely. Will this be enough to keep it in the
game?
Familymart, the number three convenience
store chain, is taking a different approach to expansion compared to its rivals by increasing the
number of cross-format tie-ups it has in place.
In addition to its relationships with other former
members of the old Seibu retail group such as
Muji, Credit Saison and Loft, Familymart has had
long standing deals with Kintetsu and Izumiya in
Kansai, and over the past two years has completed deals with various regional drugstore chains to
develop hybrid formats.
This model of joint development will now be
accelerated; deals with Yokohama Subways, Daiichi Kosho Star Karaoke and Maido Okini Shokudo restaurants all came online during the summer. The aim is to grow jointly run stores to more
than 3,000 by 2019. It has also tied with Japan Net
Bank and plans to combine its T-point loyalty card
with a new cash and credit card service.
While Seven Eleven and Lawson continue to
expand stand-alone store numbers at more than
1,000 stores a year, Familymart hopes these crossformat tie-ups will help it keep pace. All three
chains are slowly moving into drugstore hybrid
formats too; Seven Eleven has its own operation and Lawson franchises its convenience store
know-how to existing drugstore chains. Using
this joint venture model, Familymart already has
10 regional drugstores signed up and is slightly
ahead of its larger rivals in terms of store numbers, with more than 100 stores already up and
running. The usual format is 40% convenience
store, 60% drugstore merchandise in an enlarged
space with existing outlets at partner chains
converted to the hybrid format in many cases.
Most stores use dual branding.
SEVEN ELEVEN BOOSTS STATION KIOSK
SALES BY 50%
Seven Eleven began the rebranding of 500 kiosks
and convenience stores in JR West stations across
Kansai this summer, with a target of converting the
entire chain within 5 years.The first 11 stores to be
rebranded since June have experienced a significant
boost in sales, up 50% compared to last year. New
product ranges and services have made it more convenient for commuters to buy more without leaving
the station itself. In July Seven Eleven agreed a similar deal with JR Shikoku to take over convenience
stores and kiosks on the island.
This really is a conbini: Familymart A-Coop
Back in May, Familymart also completed a deal

to integrate its convenience store model with ACoop grocery stores, owned by JA, the biggest
agricultural union in Japan. The first Familymart
A-Coop store opened in Ehime in Shikoku in the
summer, and there is a target of 30 stores in the
first year or two. JA and Familymart will develop a
joint supply system for the chain, with both sides
providing some of their own brands and exclusive lines. Unlike typical Familymart stores, JA
stores also sell fresh produce another example
of a joint venture solving a problem that rivals are
tackling independently. A-Coop currently numbers around 800 stores in total and the two sides
are still discussing just how many will eventually
become Familymart integrated. The convenience
store will be hoping to take on the entire chain.
Familymart still retains a reasonably secure
third place in the sector with none of the area
franchisee defections and shrinking market faced
by the fourth largest chain, Circle K Sunkus. It
will continue to emphasise overseas expansion,
despite a set back earlier this year forcing it to
pull out of South Korea, its biggest single market outside Japan. At the same time, overseas
expansion needs stability and strength at home.
Familymarts new strategy of business tie-ups will
certainly help, but it does mean a slower rate of
expansion as well as reliance on a growing and
potentially unwieldy number of partners disagreements with its partner were, after all, the
source of the problems in Korea. JC
news & analysis

Distribution industry offers full-time
contracts amid staffing crisis
11
The distribution industry is one of the biggest employers of part-time labour, relying on
flexible, low paid people to run stores and supply centres. The problem is that there are
fewer and fewer people around to do these largely mundane jobs many young people
see working in restaurants as far more fun. Now companies are looking for solutions to the
short-fall by offering later retirement and the chance to jump from part-time to permanent
contracts.
Distribution faces a growing crisis of labour
supply with fewer and fewer cheap, flexible workers to choose from. Other jobs in restaurants and
offices are seen as easier and often pay more. As a
result many companies in the distribution industry are desperately seeking a solution.
Paltac, one of the largest wholesalers in the
household and toiletries categories, has announced a new scheme to allow employees,
including part-timers, to work until they are 70
years old. Currently the companys retirement
age is 60 with an option to stay until 65, but under the new plan employees can continue on an
hourly wage for another five years still. This is the
second 70-year retirement scheme introduced
among large companies, with an earlier one announced by Tokyu Livable, a major real estate
agency, in April, but Paltacs is the first to include
part-time employees.
The majority of Paltacs 2,000 or so full-time
staff work as sales agents, visiting clients, stock
taking in stores, and generally working long
hours riding trains. Only 160 of these are currently
aged 60-64. In addition it has some 5,000 parttime workers, almost all of whom work in one of
its 15 distribution centres across the country, and
mostly on flexible shifts. While it hopes many of
its older full-time employees will stay on, they will
only be allowed to continue with a good bill of
health. Theyll also be expected to leave their jobs
in sales and be available to work flexible hours
and in different locations most probably helping out in those distribution centres. While this
might help Paltac in the short-term, it doesnt say
much for the companys desire to leverage the
experience of its oldest workers.
On a different tack, Ito-Yokado will introduce a
new system this month offering the possibility of
permanent positions to its part-time workers. The
180 store chain currently employs some 36,000
people on a part-time basis. As ever, part-time
doesnt necessarily mean fewer hours, with 35
hours a week common even for these employees, but it certainly means fewer benefits with
health insurance and pensions left to employees
to arrange themselves.
Ito-Yokados new system will offer temporary
contracts to part-timers, elevating them to fulltime positions for fixed periods. Once a year a
lucky few of these new contract employees, just

30 in 2014, will be offered permanent positions
allowing them to stay with the company until
retirement (currently 60 years old at Ito-Yokado),
draw full benefits and have the chance to rise to
more senior positions.
Seiyu will also promote 70 part-time employees to permanent positions this year although
without the need to have a temporary contract
first. Unlike its Japanese-owned counterparts
who hire new graduates by the hundred, Seiyu
hired just 30 new graduates this year, and the
new system is designed to ensure permanent
employees have suitable experience before being hired full-time. Other overseas retailers use a
similar system.
There are some 19 million part-time workers
in Japan with more than 4.2 million in retailing
and wholesaling alone. With more interesting,
higher paid jobs in other sectors and a falling
supply of docile young workers, other companies
in the distribution sector are likely to follow this
precedent to attract more workers and encourage them to stay longer. Theres even an outside
chance wages might rise too. JC
AEON TARGETS SENIORS THROUGH GRAND
GENERATION MALLS
As well as employing more seniors, retailers are
also catering more to them. Aeon introduced a new
marketing strategy in 2011 called Grand Generation
or GG for short. The aim was to develop retail concepts targeting the active retired market of dankai
juniors aged around 55-70, including shopping malls.
The first to open was Grand Generation Kasai complete with cafe, pet area offering pet birthday cakes,
vast library-like bookstore, travel services just for
seniors from JTB, and special fitness club, but also
a smoking room with sofas.
Last month Aeon unveiled a new and improved
version within its refurbished Yagoto Mall in Showaku, Nagoya, where 35% of the population is over 55.
The space includes a culture school offering classes
in traditional Japanese arts and an event area offering concerts and seminars Aeon has also issued a
new store card called GG card. Another Grand Generation mall is expected in the 150,000 sqm SC due
in Shijonawate in Osaka in 2015.
MUJI TO ENTER INDIA

Muji has announced it will open in
India in 2015, the first Japanese
retailer to enter the country. Muji
will establish a joint venture with a
local retailer (currently unnamed),
as required under Indian regulations,
and the first store is slated for either
Delhi or Mumbai. Muji will take a 51%
stake in the joint venture and handle
merchandising and store layout,
leaving the local player to manage
HR and distribution. Both Aeon and
Fast Retailing are also confirmed to
be actively researching the market
Uniqlo already operates in Bangladesh in a joint venture with Grameen.
As of February, Muji operated 225
stores overseas in 20 different countries, with overseas sales accounting
for 21% of total turnover. It plans to
expand this to 33% of a forecast 300
billion in consolidated sales by 2017.
WORLD PLANS MORE
ACCESSORY AND HOME STORES
World will launch two accessories
chains next Spring. One called Location will focus on bags including luggage, and the other, Boule Neige,
will concentrate on fashion jewellery
and related accessories. Both have
been designed for the 25-35 womens
market and for location in station
buildings and station SCs. World has
been encouraged to develop more
non-apparel formats by the success
of its Ones Terrace chain, where
same store sales have been rising
about 7% a month since May. Ones
Terrace originally sold fabric, but four
years ago was converted into a lifestyle accessories store for SCs and is
now a 76 store chain. This year World
plans to quickly expand the chain with
a stronger focus on fashion and station buildings with a target of 100
stores through 2016. As well as fashion accessories, Ones Terrace sells
kitchen goods, household and interior
items, stationery and fabric for interiors, with around 6,000 SKUs in total.
Most stores are around 250 sqm, but
there are also some 180 sqm stores
in stations and 600 sqm stores in
SCs selling furniture and other larger
household goods. Gifts account for
around 30% of sales.
JAPANS TOP
100 CONSUMER
MARKETS: NOW TO
2025
Up to 30% off
for early orders.
Order now to get
the special discount at
www.japanconsuming.
com or order form on
back page.
Out of nearly 800 cities, discover the

top 100 consumer markets in Japan
by population, future value, wealth,
spending and retail power
a
Top 100 m
00
Top 1
rkets by Savings
ch Key Market
or e a
T he ma
markets by Incomes
p
Com
lete lis
ts of Shopping Centre
s per
Top 1W0h0 markets by Spending on

s wi
sf
ich c
all key
Charted Tren
th t
Set
itie s w
c a te g o
ds
a
h
t
ill win in the nex t decad
e
a
e? ries
bes
Retail Power
te D
t
vest
e
l
n
l
i

ong
p
o
t
s
m
o
e
e
r
C
-te r
ti
Whe
m po
nsi
T he t
p u l ati o n g row th pr osp e c t s
op m ark
il de
e t s by r e t a i l s a l e s , r e t a
Detailed Pr
Analysis by city and prefecture
M a r ke t
ofiles on each market
Trends to 2025

rket
ci t y
focus
Apparel Retailing FY2013: the best year in 15
13
Apparel sales powered ahead last year, driven by consumer demand, excellent retailing and a stronger emphasis on value rather
than price. With the exception of GMS stores sales rose across all formats even at department stores. Displaying its boundless
dynamism, the apparel industry once again included retailers achieving exceptional sales growth, with no fewer than four firms
up more than 40% and 16 more than 10%. With little room for price competition and much of the nation replete with apparel
retailing, all agree the challenge now is to improve product and marketing, and to create chains that stand out from the crowd.
GROWTH FOR EVERYONE EXCEPT GMS
APPAREL MARKET GROWS 2.27%
FY2013 was a strong year for apparel retailing sales rose 2.27%, the highest rate of
growth for more than fifteen years, and only
one of three years of growth since the turn
of the century. Gaining even more through
higher than average growth were the top
100 apparel retailers which now account
for 64.2% of total apparel sales and provide
a good barometer for the state of apparel
retailing overall. These were last years highlights:
Sales growth among the top 100 averaged
3.8%, down from 5.2% the year before, but
still outperforming the market as a whole.
While all the growth in FY2012 came from
specialty and e-commerce, last year department stores also increased sales: average growth among specialty retailers was
6.5%, followed by non-store up 4.5%, and
department stores rising a healthy 2%.
Specialty retail growth slowed from 10% in
FY2012.
GMS/supermarket apparel sales fell 3.7%.
Sogo Seibu and Tokyu were the only two
top 10 department stores to see sales fall.
Aeon and Ito-Yokado both saw apparel
sales fall by nearly 5%.
Most of the top 10 apparel retailers saw
sales rise, let down only by Aeon Retail,
World and Sogo Seibu.
The 10 retailers with the highest growth
were all specialty chains other than e-commerce firm Start Today.
The top 100 apparel retailers continue to

grab a larger share of the total market, a longterm trend. This is partly a result of mergers
and consolidation, but also because of rapid
expansion by specialty chains, online portals
and improving stability in apparel sales at department stores.
The size of the apparel market was 12.783
trillion in FY2013, up 2.27%, within an apparel, accessories and footwear market of
16.730 trillion, up 2.52% (Chart 1).
Total sales for the top 100 reached 8.207
trillion, giving the top 100 a share of 64.2%
of the total apparel market (excluding accessories and footwear), up from 63% the
year before.
Even accounting for mergers, the consistently higher performance of the top 100
over the last decade or more has caused
the market to consolidate rapidly. In
FY2006, the top 100 had sales of 7.450 trillion, giving them 53% share of the apparel
market in just seven years, their share has
risen 11 points.
This increasing dominance of the apparel
market by corporate retailing is more clearly demonstrated by the share of the top
50, top 20 and top 10; the top 50 enjoyed
share of a huge 53% of the apparel market
and the top 20, 38%. The top 10 alone now
own more than 26% of the entire market,
and 41% of the sales of the top 100.
Thanks to higher department store sales,
market share by format stabilised last year
with only GMS/Supermarkets declining
Chart 1: Apparel and Accessories markets by value, 2010-2013

FY2010
Total Apparel & Accessories Market Sales
A
METI Specialty Store Sales
B
C
METI Large Store Sales

JADMA Member Sales
Total Apparel & Accessories Sales
Apparel Only Sales

A METI Specialty Store Sales
B
METI Large Store Sales
JADMA Member Sales

Total Apparel Only Sales
10,479
YonY
%
FY2011
YonY
%
FY2012
YonY
YonY
FY2013
%
%
0.08%
10,844 3.48%
10,984 1.29%
11,286 2.75%
4,649 -6.23%
711 4.41%
4,636 -0.28%
746 4.92%
4,564 -1.55%
771 3.35%
4,612 1.05%
832 7.91%
15,839 -1.68% 16,226 2.44% 16,319 0.57% 16,730 2.52%

7,859
0.08%
8,133 3.48%
8,238 1.29%
8,465 2.75%
3,587 -6.03%
3,577 -0.28%
3,490 -2.43%
3,486 -0.11%
711 4.41%
746 4.92%
771 3.35%
832 7.91%
12,157 -1.57% 12,456 2.46% 12,499 0.35% 12,783 2.27%
Note: JADMA: Japan Direct Marketing Association. Accessories = includes scarves, gloves, shoes, bags and
related accessories . METI total figures include traditional clothing, some textiles, bedding and other items.
Source: Government Data; Trade Associations
significantly.
Specialty stores had a mixed year; the top
retailers did well but many smaller firms
with sales of less than 15 billion suffered
from the growing levels of competition, in
particular the improvements in merchandise design and quality among leading
chains.
FAST GROWTH ACROSS ALL FORMATS
The rapid increase in market share is testament to the dynamism of the apparel and
fashion industries. The sector is constantly
being replenished and infused with new
growth, ideas and innovation from new entrants who are able to grow very fast. Powerful new players in the middle of the rankings
now include Mash Holdings, GU, and Trinity
Arts, not to mention the overseas chains, with
H&M alone up 46% (see Chart 3 Inditex Japan and Forever 21 are not included in our
calculations due to lack of available data).
Mash Holdings (formerly Mash Style Lab)
rose 48.3% to 30.1 billion on the back of
both strong like for like growth and new
stores for its key chains, Snidel, Gelato
Pique and Fray I.D.. Strong levels of presentation, merchandising and marketing suggest plentiful growth in the year ahead too.
GU rose nearly 45%, adding a net 33 stores,
but it also got a boost from successful TV
spots, strong social media campaigns, and
the popularity of its knitwear and leggings.
Its ongoing commitment to improving
product value through design and customer feedback suggest GU has considerable
potential both in and outside Japan.
Uniqlo had an excellent year, up 10.2%
within Japan. As has been said before, the
key to fixing Uniqlos Japanese sales was
womens fashions, and last year, womenswear sales rose 16%. Even more impressive was that almost all of this growth
came from existing stores Uniqlo only
increased net store numbers within Japan
by eight last year.
Trinity Arts, up 42%, raided the cash reserves of its new parent Adastria Holdings
and splurged on opening a net 96 stores
last year, but same store sales also rose. The
ongoing popularity of its key chains Niko
and and Studio Clip suggest good mo-
14
focus
Chart 2: Top 100 Retailers of Apparel, FY2013
Rank
Company
1
Uniqlo
2
Shimamura
Type
SpS
SpS
Apparel Top 100
Apparel
in Total
Sales
YonY
Sales*
mn
%
%
683,314
10.2
100.0
497,317
2.0
100.0
Rank
Company
51 H&M Japan***
52 Iwataya Mitsukoshi
3
4
5
Rakuten**
Aeon Retail
Daimaru-Matsuzakaya
DM
GMS
DpS
385,560
368,000
272,152
11.2
-4.8
2.7
22.6
19.8
40.1
53
54
55
6
7
World
Isetan-Mitsukoshi
SpS
DpS
263,389
254,750
-5.7
3.6
83.0
37.7
56
57
8
9
10
Takashimaya
Sogo Seibu
Onward Holdings**
DpS
DpS
SpS
238,014
226,975
208,349
9.8
-2.7
6.7
31.4
28.8
79.5
58
59
60
11
12
Ito-Yokado
Marui Group
GMS
DpS
204,051
199,395
-4.7
2.2
17.8
47.9
13
14
15
16
Aoyama Shoji
Hankyu-Hanshin
SpS
DpS
185,709
144,577
TSI Holdings**
United Arrows
SpS
SpS
140,019
118,212
4.0
11.1
-2.5
10.9
17
18
Point
Aoki Holdings
SpS
SpS
118,019
116,722
19
20
21
Seiyu*
Uny
Start Today**
GMS
GMS
DM
22
23
24
Pal Group
Gap Japan*
Sazaby Group
Dinos-Cecile
DpS
GMS
SpS
43,078
42135.0
40,955
3.8
-4.4
6.3
39.5
16.1
20.0
GMS
SpS
DpS
40,058
37,399
36,939
-5.7
-0.8
1.1
13.9
60.0
38.5
Mac House
Urban Research
SpS
SpS
36,749
36,300
-4.9
27.4
100.0
100.0
61
62
Scroll (was Mutow)**

Aeon Hokkaido
DM
GMS
35,013
34,981
9.7
-1.0
51.3
23.4
100.0
34.0
85.0
100.0
63
64
65
66
Keio
Itokin
Tenmaya
34,012
33,201
32,475
31,973
0.4
-3.6
-0.1
42.1
35.9
32.0
35.0
Trinity Arts
DpS
SpS
DpS
SpS
2.5
12.3
100.0
65.0
67
68
Mash Holdings
Fuji
SpS
GMS
30,100
29,082
48.3
-5.8
100.0
11.3
112,500
108,655
105,432
-3.1
18.6
15.3
92.0
69
70
71
Felissimo
Life Corporation
28,915
28,868
27,219
-9.6
-2.9
-8.5
71.0
6.0
75.0
SpS
SpS
SpS
100,033
95,000
91,400
8.2
4.2
82.0
100.0
95.0
72
73
74
Palemo
Taka Q
Marui Mitsukoshi
Workman
DM
SM
SpS
SpS
DpS
SpS
25,883
25,317
24,934
3.4
4.1
6.8
97.2
37.2
51.8
Right On
GU*
DM
SpS
SpS
85,330
83,942
83,700
4.0
-2.2
44.3
70.0
100.0
100.0
75
76
77
Izutsuya
F.O. International
Niigata Isetan-Mitsukoshi
DpS
SpS
DpS
23,047
22,806
22,582
0.1
12.9
2.4
36.1
100.0
46.4
Kintetsu
Senshukai
Daiei
Cross Company
DpS
DM
GMS
SpS
81,442
77,853
77,176
76,420
2.7
8.3
-4.2
78
79
80
Ships
Tutuanna
Matsuya
4.5
8.5
6.2
100.0
100.0
34.0
Cox
21,407
Baycrews
SpS
71,662
95.0
81
82
SpS
SpS
DpS
SpS
22,509
22,213
22,191
19.6
11.4
31.6
55.0
14.1
100
Japan Imagination
SpS
21,401
-7.8
-10.1
100.0
33
34
35
Izumi
Ryohin Keikaku (Muji)
Nishimatsuya Chain
GMS
SpS
SpS
68,710
67,033
66,263
0.4
12.9
4.2
14.3
38.0
51.9
83
84
85
Daimaru Hakkata
Wego
Meitetsu
DpS
SpS
DpS
21,320
20,800
20,629
1.7
10.6
2.1
36.3
100.0
34.5
36
37
38
Beams
Konaka
Nissen
SpS
SpS
DM
64,913
64,700
61,814
5.8
-1.9
-12.5
95.7
100.0
31.5
86
87
88
Yamato
Barneys Japan
Can
SpS
SpS
SpS
19,730
19,726
19,685
1.1
1.1
3.0
100.0
100.0
84.5
39
40
41
Baroque Japan
Five Foxes**
SpS
SpS
59,017
57,443
100.0
60
Tokyu
DpS
56,220
-1.4
-11.3
-6.0
89
90
91
Tsuruya
Tokiwa
Yamakataya
DpS
DpS
DpS
19,413
18,338
18,277
-0.5
-1.5
-0.7
40.0
39.2
38.2
42
43
44
Jupiter Shop Channel

Aeon Kyushu
DM
GMS
53,120
52,478
40.0
24.3
Haruyama Shoji
SpS
51,649
4.4
-8.0
1.7
100.0
92
93
94
Maruhiro
Daiwa
York Benimaru
DpS
DpS
SM
18,254
18,214
17,597
-4.2
-0.6
-0.3
29.2
38.0
4.8
45
46
Belluna
Honeys
DM
SpS
49,298
48,052
6.4
-6.5
50.5
100.0
95
96
IGA
Fukuya
SpS
DpS
16,692
16,663
0.6
2.1
100.0
31.0
47
48
49
Jun**
Tobu
Leilian
SpS
DpS
SpS
46,689
45,948
45,617
3.4
1.3
1.6
91.0
30.5
100.0
97
98
99
Tabio
Keikyu
Sakazen Group
SpS
DpS
SpS
15,844
15,746
14,790
3.8
9.8
-2.7
100.0
34.5
100.0
50
Odakyu
DpS
44,640
1.1
30.4
SpS
14,233
-3.3
100.0
25
26
27
28
29
30
31
32
Notes:
*
**
***
Estimate
Estimated retail sales
Local currency conversion
DpS
SpS
GMS
29.0
Department store
Specialty store
General Merchandise Store
JR Tokai Takashimaya
Izumiya
Type
SpS
DpS
Apparel
in Total
Sales
YonY Sales*
mn
%
%
44,490
46.0
44,412
37.7
4.1
Xebio
Heiwado
Sanki
JR West Japan Isetan
100 Tatsumiya
DM
SM
85.0
84.4
Direct Mail
Supermarket
Source: Compiled by JapanConsuming from Company data; Hanbai Kakushin; Trade Data. Results also dependent on survey responses. Zara Japan not included
focus
mentum going forward.
This made up for slow growth at sister firm,
Point, up just 2.4%. Adastria is aware of the
problem, in particular the very staid, copycat product produced through its main
trading partners, and is instead expanding
its own direct sourcing in a bid to differentiate chains like Global Work and Lowrys
Farm, both from each other and from the
competition. This differentiation is necessary if it is to avoid trouble ahead.
Urban Research was the fifth fastest growing apparel retailer in FY2013, jumping
27.4%. It opened a net 46 stores. Its Doors
chain for the SC market has been a significant source of growth, but its new SPA
chain, Sense of Place, is one to watch, offering quality original merchandise at competitive prices, and is proving popular with
SC developers and consumers alike.
Cross Company posted growth of nearly
20%, but most of this came from heavy
investment in new stores, up a net 108 to
602. It also recognises the need to up its
game in terms of product design and value.
New to the top growth rankings is Ryohin
Keikaku (Muji), which rose 12.9% on the
back of much improved merchandise, with
more emphasis on premium lines, helping
it further towards its target of 40% of sales
from apparel in the medium term.
Also new to the growth rankings is Aoki
Holdings which managed to improve like
for like sales as well as investing in new
stores for its Orihica and other chains, increasing stores by 86 net.
Apart from specialty chains, six direct
marketers/e-commerce firms made it into
the top 30 fastest growing businesses. As well
as Rakuten, Start Today and Jupiter, all the
leading former catalogue firms posted strong
growth, partly from expanding e-commerce
and mobile commerce operations. The only
exception was Nissen, which had one of its
worst years, down 12.5%, leading it to accept new ownership under Seven & I. Seven
& I plans to make Nissen the hub of its new
omnichannel strategy, marrying its strengths
in direct marketing with the logistics prowess
of Seven Eleven. If it can execute well, it could
inject new life into the Kyoto-based firm.
DEPARTMENT STORE APPAREL UP
As reported in last months focus, department stores made hay last year on the back
of strong demand for luxury and premium
brands, including in apparel. Of the department store firms within our top 100 apparel
retailers, 21 saw sales grow last year and just
seven saw sales fall. Average growth was
2.0%, which helped reduce the loss in market
share to just 0.2 points, falling to 24.6%.

Four department stores made it into the
top 30 fastest growing retailers of apparel.
Matsuya was again a top performer, adding new brands, refurbishment, a focus on
tourists, and new marketing ideas. HankyuHanshin benefited from the unveiling of Hankyu Umeda and the first full year of Hankyu
Hakata. Keikyu rose 9.6% on the back of refurbishment and Takashimaya jumped 9.8%,
but this was largely due to a recalculation of
its apparel share.
Considering the number of drab stores
still operating within department store
chains, this is a very respectable result. The
leading firms are all planning to upgrade regional stores this year and next which may
help boost sales further, depending on consumer demand. Their apparel market share
within the top 100 may have fallen from 38%
to 24.6% since 2006, but, store closures apart,
it is likely thatshare will stabilise over the next
few years.
GMS STILL ADJUSTING PRIVATE BRAND
FORMULA
15
around 3.3%, lower than in previous years.

One of the prime reasons was the slow down
in store expansion by the likes of Uniqlo,
which opened 51 stores but closed 43, a net
gain of just eight stores although since new
stores were generally larger, net space increased. Instead a key feature of FY2013 was
the increase in same store sales.
The bulk of growth came from larger retailers among the top 150 specialty retailers, 80% of the sales growth came from the
top 11 firms. With the exception of fast growing smaller firms like Mash Holdings, this has
been the rule for the last few years and emphasises the consolidation of share among
the leading firms. Profitability, however, suffered due to rising import prices on the back
of a cheap Yen. This led to a spike in the cost
of sales and a fall in gross margins, from an
average of 48.2% to 47.4% across specialty
apparel retailing overall. Average operating
profit margins fell one point to 8.6%.
There is a sense that the specialty apparel
sector overall is now mature and entering a
phase of consolidation. Plenty of growth lies
ahead for the innovators but, while in previous years this was at the expense of other
formats, notably department stores, in the
future growing specialty chains will be taking
share from other specialty retailers.
Overall Aeon remains a powerful retailer

of apparel; include its subsidiaries like Daiei,
Aeon Kyushu, Aeon Hokkaido, Taka Q, Cox,
and Laura Ashley, and its apparel sales come
to around 600 billion, making it the second
largest apparel retailer within Japan. But it TOP FOUR RETAILERS TAKE 50% OF WOMwill be disappointed in its apparel sales last ENSWEAR MARKET
Competition growth between specialty
year. Both the main GMS format and its Cox
subsidiary saw sales fall. The only consolation brands is already being seen in some segis that all the main GMS and supermarket ments. The low to mid-priced, young womens market in particular is facing a shake up,
chains lost sales last year other than Izumi.
Gross margins improved for some,
such as Ito-Yokado up 0.4 points and Chart 3: Fastest growing apparel retailers, 2013
Daiei up 0.2 points, but there was surSales
YonY
Rank
Company
Type
mn
%
prisingly little real improvement across
Mash Holdings
SpS
30,100
48.3
1
the sector despite the increasing focus
2
H&M Japan***
SpS
44,490
46.0
on private brands. 2014 should be bet3
GU*
SpS
83,700
44.3
ter as new brands and greater invest4
Trinity Arts
SpS
31,973
42.1
ment in marketing pay off (for full
Urban Research
SpS
36,300
5
27.4
details see JC1409). Other than Seiyu,
Cross Company
76,420
19.6
6
SpS
Aeon is leading the sector in this reStart Today
DM
105,432
18.6
7
gard through its TopValu brand, as well
8
Ryohin Keikaku (Muji)
SpS
67,033
12.9
as dedicated apparel brands like Es9
F.O. International
SpS
22,806
12.9
pritmur and its new specialty chain F.T.
10 Aoki Holdings
SpS
116,722
12.3
SPECIALTY CHAINS CONSOLIDATE
AT THE TOP BUT PROFITS FALL
Specialty chains within the top 100

apparel retailers saw average growth
of 6.5%. This exceeded the growth of
specialty apparel retail chains overall
(150 retailers with sales over 1 billion)
which grew 5.8%, still an exceptional
result. While store expansion is normally the primary reason for growth,
last year the rate of store growth was
11
12
13
14
15
16
17
18
19
20
Baycrews
Rakuten
Hankyu-Hanshin
United Arrows
Wego
Uniqlo
Takashimaya
Keikyu
Scroll (was Mutow)
Tutuanna
SpS
DM
DpS
SpS
SpS
SpS
DpS
DpS
DM
SpS
71,662
385,560
144,577
118,212
20,800
683,314
238,014
15,746
35,013
22,213
11.4
11.2
11.1
10.9
10.6
10.2
9.8
9.8
9.7
8.5
Note: ***Exchange rate as of 09/2014

Source: Compiled by JapanConsuming from Company data;; Nikkei. Results also
dependent on survey responses
16
focus
al chains dominate new month in Okayama, and which is due to open

builds. With little virgin overseas within 18 months.
%
territory left within JaAt the same time, expansion across prodSales
Total
YonY
pan, competition be- uct categories is also a key change especially
Sales
Company
Type
%
tween chains will inten- among the mid-ranking, fast growing firms.
1
Uniqlo
Casual
331,912
16.0
48.6
sify, but this does not While apparel and accessories are core, the
2
Shimamura
Casual
125,726
-0.2
30.9
mean on price. Rising breadth of merchandise in stores like Studio
3
Pal Group
General
76,025
76.1
import costs and the Clip and others is striking, covering interiors,
4
Cross Company
Womens
74,258
97.4
5
Point
Casual
70,837
62.1
already extensive work gifts, food, bicycles, and kitchen equipment.
6
United Arrows
Select
52,631
12.6
44.5
done to pass on cheap Some new chains are being planned from
7
Leilian
Womens
45,266
1.6
100.0
sourcing to consumers scratch to be something akin to general
8
Baycrews
Select
44,789
7.1
65.0
in the last decade mean lifestyle retailers, selling fashion for both the
9
Baroque Japan Ltd
Womens
44,589
16.8
85.0
that the era of apparel body and the home in one store while yet
10 Honeys
Womens
42,034
-7.4
88.0
deflation is well and to be unveiled, Pals Colony 2139 looks like
11 Beams
Select
29,211
-0.8
45.0
truly over. Competition being one such example. This kind of cross
12 Trinity Arts
Womens
28,775
90.0
will instead come in merchandising makes sense given the level
13 Mash Holdings
Womens
26,700
45.1
88.5
the form of merchan- of competition in apparel retailing, but also
14 Palemo
Womens
26,125 -12.0
72.0
dising, marketing and exploits the growing demand for fashioning
15 Right On
Casual
23,320
-4.6
28.0
retail
entertainment. the home that is at last taking hold in Japan.
16 Aoyama Shoji
Mens
21,286
12.8
11.7
What marks out the
17 Ryohin Keikaku
General
21,197
15.8
12.0
All of which speaks to promising growth
18 Japan Imagination
Womens
17,547 -11.4
81.0
likes of Trinity Arts, Mash ahead for some retailers, but the broader issue
19 Can
Womens
15,964
4.5
80.0
Holdings and Urban Re- of consumer demand for apparel remains un20 Aoki HD
Mens
15,874
13.6
search is not their cheap certain. The cheap Yen combined with rising
21 Urban Research
General
14,883
30.6
41.0
prices but a judicious labour and raw material costs overseas mean
22 Tatsumiya
Womens
14,233
-3.3
100.0
mix of distinctive mer- that prices of apparel are rising. Uniqlo and
23 IGA
Womens
13,804
-0.9
84.0
chandising,
multiple Muji among others announced higher prices
24 Sanki
General
13,090
-3.1
21.0
well-targeted
formats, for Autumn 2014, and without a strengthen25 Cox
Casual
12,116 -12.0
56.0
dynamic
presentation
26 Keizan
Womens
10,200
-0.4
100.0
ing of the Yen, there does not look to be any
and the kind of store reason to expect prices to fall. Any increase in
27 Ms
Casual
10,113
5.7
95.0
browseability that suits prices will help top line sales growth at least,
Source: JapanConsuming; Company data; Note: World, Onward, etc. not included
SC and station shop- but at the same time, as has been said before,
with the likes of Japan Imagination, down
ping.
not without higher incomes. Aside from the
10%, and Honeys losing out to chains like
A recent survey of apparel retailers by wealthy, wages continue to fall in real terms.
H&M. Smaller retailers like Egoist and Maruo- Senken bears this out. While 64% of 125 And when prices rise and wages fall, there is
ka Shoji were also hit hard. Indeed among firms expected sales and profits to increase a limit to demand for fashion consumption
the 105 womenswear specialty retailers with in FY2014, most said this would only happen in the mass market, even in Japan. Consumsales of 1 billion or more, 60 retailers saw through significant improvements in mer- ers will still buy fashion, but will want every
sales fall last year against 45 with higher sales. chandising. 70% said the number one priority purchase to count adding yet another reaAnd the majority of these were retailers with in the next year would be upgrading prod- son for retailers to seek out even better price/
sales of less than 15 billion 18 dropped by uct design and quality. To do this, more firms value performance. JC
more than 10%.
were reviewing supply chains and looking
The older, more staid casual apparel retail- at factories that could turn
ers like Mac House and Cox are being hit by out better rather than just Chart 5: Top menswear specialty retailers, 2013
Uniqlo and GU. Uniqlos womenswear sales cheaper. Anecdotally, many
YonY % Total
rose an impressive 16% last year, now ac- are emphasising product
Company
Type
Sales
%
Sales
counting for almost 50% of sales. At the top originality, essential in a
1 Uniqlo
Casual
286,959
6.1
42.0
of the womenswear rankings the dominance market where so much
2 Aoyama Shoji
Mens
164,423
3.0
88.0
of the five unisex retailers, Uniqlo, Shima- merchandise is too similar.
3 Aoki Holdings
Mens
100,848
-3.0
86.0
4
Konaka
Mens
38,986
-0.9
60.5
mura, Pal, Point and United Arrows is striking.
The lack of easy pickings
5 Haruyama Shoji
Mens
43,066
-1.4
85.0
Among all womenswear specialty retailers at home also means a new
6 Right On
Casual
42,772
-1.7
51.0
with sales of more than 1 billion, these four international focus, with
7 United Arrows
Select
36,193
6.7
30.5
retailers alone took 48% of sales. The top 10 even smaller companies
8
Beams
Select
35,702
11.9
55.0
took 73%.
like Mash Holdings look9 Shimamura
Casual
32,312
4.4
7.9
In menswear, the picture is even more ing to expand overseas at
10 Point
Casual
23,545
20.0
stark; the top three, Uniqlo, Aoyama and Aoki an earlier stage than their
11 Taka Q
Mens
23,450
5.1
90.5
own 52% of the market and the top 10, 77%.
older peers. Most are look12 Baycrews
Select
21,499
12.1
30.0
ing to take existing formats
13 Mac House
Casual
18,338
-4.9
49.9
as is, but others are buildITS ALL ABOUT THE PRODUCT
14 Sakazen Group
Mens
14,261
-0.8
96.8
15 Urban Research
Select
11,253
23.4
31.0
Much of the country has already been ing entirely new chains de16 Ships
Select
10,033
-3.9
44.6
covered by the main specialty chains, and signed for global markets,
Source: JapanConsuming; Company data; Senken Note: Avail and World, Onward, etc. not
while SC development continues apace, the such as Cross Companys
included.
multi-banner larger retailers and internation- Koe chain that opened last
Chart 4: Top womenswear specialty retailers, 2013
retail data
Department Stores steady, down just 0.3%
JDSA member sales fell just 0.3% in August and would probably
have beaten 2013 if it werent for poor weather. While Seven & Is SEO
came out to insist the post-tax hike recovery would be slower than
in 1997, department stores and many medium sized chain stores did
exceptionally well in July-September and would probably disagree.
Sales in the top 10 cities were indeed higher than 2013, up 0.5%,
17
the first increase in five months, and Tokyo stores did even better, up
1.3%. Regional sales fell just under 2%. By category apparel, accessories and food were all up on the year. Tourist sales increased 41.3%
although per customer sales were down 8.2% to 83,000.
Consumer incomes continue to shift downwards, however, and
households are increasing their savings rates.
METI AND DISTRIBUTION TRADE FIGURES
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2013
2014
Total
Total
Total
Total
Total
Total
Total
Total
Total
Total
Total
Total
July
Aug
Sep
Oct
Nov
Dec
Total
Jan
Feb
Mar
Apr
May
Jun
July
Aug
Store
Nos
387
372
364
358
345
335
323
312
290
274
265
259
254
254
254
254
254
254
254
254
254
253
252
252
252
252
252
Department Stores
Sales
YonY
bn
%
9,628.4
-3.8
9,369.2
-2.7
9,106.7
-2.8
8,853.6
-2.8
8,763.0
-1.0
8,644.2
-1.4
8,467.5
-2.0
8,079.0
-4.6
7,177.5
-11.2
6,842.3
-4.7
6,660.6
-2.6
6,638.8
-0.3
604.1
-2.7
465.3
2.4
481.1
2.5
530.3
-0.9
610.8
2.1
782.4
1.4
6,719.6
1.2
604.9
2.4
478.5
2.5
735.9
25.0
461.1
-10.5
511.3
-2.6
540.2
-3.3
600.5
-0.6
473.8
1.8
LfL
%
-10.1
-3.0
-2.3
0.4
-2.2
3.0
3.0
-0.4
2.6
1.9
1.8
3.3
2.9
25.2
-10.1
-2.1
-2.4
-0.4
2.0
Store
Nos
3,511
3,641
3,755
3,932
3,940
3,989
4,124
4,258
4,391
4,683
4,771
4,873
4,969
4,972
4,982
5,002
5,030
5,057
5,057
5,061
5,048
5,049
5,045
5,046
5,051
5,067
5,076
Chain Stores
Sales
YonY LfL
bn
%
%
12,709.3
0.7
12,670.2
-0.3
12,652.6
-0.1
12,613.9
-0.3
12,565.6
-0.4
12,501.0
-0.5
12,733.6
1.9
12,872.4
1.1 -1.3
12,798.6
-2.1 -5.0
12,737.3
-0.5 -0.5
12,932.7
0.0 -1.5
12,954.7
0.2 -1.3
1,108.6
0.4 -1.2
1,117.0
0.2 -1.3
1,024.8
1.2 -0.4
1,060.8
1.6
0.0
1,085.5
0.8 -0.6
1,357.5
0.6 -0.9
13,057.7
0.2 -1.5
1,106.8
-0.2 -1.8
990.5
3.5
0.5
1,220.2
12.6 11.1
1,006.6
-3.9 -5.1
1,081.1
0.5 -0.8
1,091.5
-0.1 -1.5
1,116.7
0.7 -0.7
1,152.7
3.2
1.4
Convenience Stores
Store
Sales YonY
Nos
bn
%
36,176 6,878.8
3.3
37,083 6,980.0
1.5
37,691 7,096.4
1.7
38,621 7,289.2
2.7
39,600 7,359.6
1.0
40,183 7,399.0
0.5
40,405 7,489.4
1.2
40,745 7,942.6
6.1
41,724 7,980.8
0.5
42,347 8,113.6
1.7
43,373 8,774.7
8.1
47,801 9,477.2
4.0
49,196
901.4
4.8
49,654
904.7
4.3
49,645
828.0
3.8
49,806
842.6
4.6
50,044
819.8
5.9
50,234
876.3
4.9
50,234 9,872.4
4.2
50,384
794.6
5.4
50,887
746.8
6.2
50,820
872.3
7.6
51,072
811.3
4.2
51,379
877.9
6.4
51,513
868.2
4.9
51,774
952.3
5.7
52,280
944.4
4.4
LfL
%
-1.7
-1.7
-2.3
-0.6
-0.6
-2.4
-0.9
4.2
-2.1
2.8
5.6
-0.3
-0.7
-1.3
-1.6
-0.9
0.4
-0.3
-1.2
-0.1
0.9
2.8
-0.3
1.3
0.2
0.8
-0.3
Wholesale Sales
Sales
YonY
bn
%
423,996
-5.4
400,657
-5.5
402,879
0.6
414,402
2.9
407,595
-1.6
414,346
1.7
422,542
2.0
428,087
1.3
317,980
-25.7
325,163
2.3
331,300
1.9
324,617
-2.0
27,265
2.0
26,115
0.4
27,715
2.7
27,378
1.8
27,768
2.4
30,366
2.9
327,238
0.8
25,588
4.4
26,739
2.0
32,442
7.5
25,981
-3.4
25,711
-1.3
26,739
-0.5
27,233
-0.1
25,385
-2.8
Retail Sales
Sales
YonY
bn
%
136,808
-1.9
132,280
-3.3
132,446
0.1
133,649
0.9
134,828
0.9
134,910
0.1
135,415
0.4
136,017
0.4
132,961
-2.2
136,479
2.6
135,157
-1.0
137,584
1.8
11,749
-0.3
11,313
1.1
10,992
3.0
11,215
2.4
11,588
4.1
13,492
2.5
138,898
1.0
11,721
4.4
10,916
3.6
13,733
11.0
11,016
-4.3
11,430
-0.4
11,357
-0.6
11,821
0.6
11,452
1.2
Price Indices
Whs
98.3
95.7
94.6
94.6
96.2
98.2
99.7
102.7
101.7
100.0
101.6
100.6
102.2
102.4
102.6
102.5
102.6
102.8
101.9
103.0
102.8
102.8
105.7
106.1
106.3
106.6
Rtl
101.5
100.6
100.3
100.3
100.0
100.3
100.3
101.7
100.3
99.6
99.7
99.7
100.0
100.3
100.6
100.7
100.8
100.9
100.0
100.7
100.7
101.0
103.1
103.5
103.4
103.4
103.6
Notes: LfL: Like for Like Sales YonY % Change; Chain store store numbers recalculated for July 2010 and annual change readjusted accordingly. Convenience store survey sample revised in January 2012. JC is reporting METIs official figures. METI revised its calculation
methods in February 2013 and revised previous data. JC figures were updated accordingly. Wholesale and consumer price indices were readjusted in mid-2012 so that 2010 =100. Source: METI; BOJ; JapanConsuming.
Clothing &
footwear
Medical care
Transport &
communication
Education
Culture &
recreation
Non-consumption
expenditure
Disposable
income
Net increase
deposits & insurance
326,566
331,636
329,499
320,231
323,459
324,929
319,060
318,082
308,849
313,887
319,170
71,394
71,935
70,947
69,403
70,352
71,051
70,135
70,205
68,417
69,466
70,586
22,222
20,877
21,839
20,292
20,207
19,156
19,614
20,399
21,596
20,478
19,775
20,718
20,950
21,328
21,998
21,555
22,666
21,466
20,689
21,742
22,511
22,993
10,427
10,392
10,313
9,954
9,914
10,501
10,152
10,760
10,406
10,491
10,385
15,444
14,867
14,971
14,430
14,846
14,263
13,773
13,460
13,102
13,554
13,715
11,603
11,545
12,035
11,463
11,697
11,593
12,036
11,691
10,879
11,718
11,596
44,730
47,356
46,986
45,769
46,259
48,259
47,093
48,211
45,488
50,238
52,595
17,857
19,482
18,561
18,713
19,090
18,789
19,493
17,948
18,611
18,002
19,027
32,181
33,549
32,847
31,421
33,166
33,390
33,243
34,225
31,294
30,504
30,944
79,991
80,683
79,671
76,786
76,372
75,260
72,055
70,496
67,292
66,926
67,554
84,143
85,402
83,429
84,271
86,257
91,486
40,878
73,166
89,616
93,507
97,457
440,667
446,288
441,156
441,448
442,504
442,749
427,912
437,647
420,501
424,990
426,132
73,327
75,584
71,798
82,158
80,900
81,213
77,853
83,514
77,479
78,189
74,764
307,926
296,512
310,387
312,622
315,443
316,555
300,994
358,468
325,804
294,509
384,680
329,976
293,050
295,738
311,693
305,836
70,840
69,474
70,747
72,536
69,005
69,269
68,088
84,137
68,155
64,663
74,954
66,272
71,821
68,721
70,165
73,441
22,420
18,980
16,620
21,091
19,981
20,668
19,365
22,019
19,219
20,756
24,686
22,192
17,616
20,201
20,829
17,242
21,856
19,395
19,315
20,106
20,635
19,084
20,478
24,790
29,317
31,092
29,811
25,287
21,352
20,070
18,570
19,891
10,333
11,388
12,574
10,934
9,860
10,172
10,359
13,018
9,641
10,310
17,910
7,889
9,035
10,763
11,420
11,615
14,075
13,632
13,823
10,636
10,458
14,005
15,461
16,450
16,185
9,697
18,380
13,078
13,573
13,517
13,499
10,710
10,963
11,875
11,952
10,821
10,810
11,247
12,205
12,744
10,495
11,076
14,058
9,559
9,695
9,922
10,590
11,359
43,336
47,041
52,940
51,650
53,939
57,434
50,609
58,964
53,790
48,107
71,541
52,826
42,188
48,464
56,413
49,524
18,852
12,209
13,810
11,170
26,201
23,641
13,556
14,351
15,932
16,820
19,918
34,846
16,932
12,387
15,137
11,453
29,477
29,565
32,498
36,269
28,532
27,617
28,794
35,915
30,037
25,577
36,826
30,186
29,000
30,057
30,096
33,315
65,776
62,953
66,109
67,409
66,022
63,417
62,079
76,079
73,032
56,411
76,598
67,840
61,839
61,636
64,974
67,285
104,370
136,853
114,845
82,503
82,354
81,545
80,085
151,515
80,248
80,987
79,463
90,874
100,177
141,501
106,847
80,516
318,353
591,825
454,329
388,907
349,578
401,139
356,208
754,307
358,398
398,281
358,281
373,090
320,940
568,874
448,429
383,294
-15,279
260,653
101,883
44,693
2,603
68,071
39,034
344,851
10,746
65,149
-26,208
14,772
3,170
229,387
109,202
55,855
Other consumption
expenditure
Furniture &
household utensils
412,296
433,365
425,232
395,126
397,797
398,100
381,079
509,983
406,052
375,496
464,143
420,850
393,227
437,239
418,540
386,352
Utilities
422,724
728,678
569,174
471,411
431,931
482,684
436,293
905,822
438,646
479,268
438,145
463,964
421,117
710,375
555,276
463,810
Housing
2013. 05
2013. 06
2013. 07
2013. 08
2013. 09
2013. 10
2013. 11
2013. 12
2014. 01
2014. 02
2014. 03
2014. 04
2014. 05
2014. 06
2014. 07
2014. 08
Food
Average
Per Year
2003
524,810
410,709
2004
531,690
417,038
2005
524,585
412,928
2006
525,719
404,502
2007
528,762
409,716
2008
534,235
416,415
2009
518,226
409,374
2010
528,080
408,515
2011
510,117
398,442
2012
518,497
407,394
2013
523,589
416,626
Actual Figures per Month
Consumption
Expenditure
Total
Expenditure
Income
CONSUMER INCOME & EXPENDITURE: WORKING HOUSEHOLDS, TWO OR MORE PEOPLE
Notes: JC uses figures for working households of two or more people, including primary industry workers. Annual figures indicate 12 month averages. Source: Household Accounts; JapanConsuming.
18
retail data
LEADING DEPARTMENT STORES SALES (PREVIOUS MONTH)
Company
Locations
Tokyo Stores
Isetan
Shinjuku
Mitsukoshi
Nihonbashi & 2 others
Seibu
Ikebukuro
Takashimaya
Nihonbashi
Tobu
Ikebukuro
Tokyu
Shibuya, Higashiyoko
Odakyu
Shinjuku
Keio
Shinjuku
Daimaru
Tokyo
Mitsukoshi
Ginza
Takashimaya
Shinjuku
Matsuya
Ginza, Asakusa
Matsuzakaya
Ueno
Takashimaya
Tamagawa
Seibu
Shibuya
Odakyu
Machida
Hankyu Mens
Yurakucho
Kansai Stores (Osaka, Kyoto, Kobe)
Hankyu
Umeda & 5 others
Kintetsu
Abeno & 6 others
Takashimaya
Osaka & 3 others
Daimaru
Shinsaibashi, Umeda
Motomachi & 3 others
Daimaru
Hanshin
Umeda, 4 others
Takashimaya
Kyoto, Rakunishi
Kyoto, Yamaka
Daimaru
Isetan
JR Kyoto
Sogo
Sannomiya & Seishin Chuo
Keihan
Moriguchi & 3 others
Seibu
Takatsuki & 2 others
Isetan Mitsukoshi
Osaka
Other Regions
Takashimaya
Yokohama, Konandai
Matsuzakaya
Nagoya
Takashimaya
JR Nagoya
Sogo
Yokohama
Mitsukoshi
Sakae
Iwataya
A Side
Fukuya
Hiroshima & Hiroshima Station
Mitsukoshi
Sapporo & Marui Imai
Sogo
Chiba
Daimaru
Sapporo
Izutsuya
Kokura, Kurozaki
Daimaru
Hakata
Meitetsu
Nagoya
Yamagataya
Kagoshima
Tenmaya
Okayama & 2 others
Fujisaki
Sendai
Sogo
Hiroshima & Kure
Hankyu
Fukuoka
Tobu
Funabashi
Mitsukoshi
Sendai
Saikaya
Kawasaki & 2 others
Takashimaya
Iyotetsu Matsuyama
Entetsu
Shizuoka
Mitsukoshi
Fukuoka
Source: Nikkei & JDSA: JapanConsuming.
Sales YonY
m
%
23,150
15,914
15,415
11,024
8,959
7,803
7,722
6,672
6,654
6,333
5,837
5,688
4,381
4,056
3,206
2,208
1,566
20.6
7.9
0.3
-2.8
0.7
7.7
3.8
-4.3
13.8
19.2
10.8
9.4
41.4
12.1
1.7
-30.6
22.0
24,437
16,570
14,221
14,131
9,275
7,377
7,224
6,803
5,428
4,813
4,410
3,957
3,596
4.4
0.8
-1.8
-3.7
-4.9
-9.5
-6.6
-0.8
0.1
-3.1
-5.8
-3.5
36.4
31.8
7.5
13.3
29.3
21.7
9.9
8.9
20.8
17.8
-5.2
-1.6
-4.9
24.9
12,773
12,332
10,254
9,165
6,907
6,313
5,615
5,532
5,473
5,005
4,867
4,856
4,402
4,399
3,985
3,973
3,631
3,539
3,488
3,427
3,062
3,059
2,911
2,788
-3.4
0.1
1.0
-1.4
1.4
-2.9
-5.4
-3.1
-5.8
-1.7
-7.8
-6.4
0.8
-4.0
2.0
-1.8
-2.3
5.3
-5.1
2.2
-8.1
-5.5
-8.6
-7.3
4.7
28.5
8.1
-1.4
9.9
23.4
49.3
11.0
-3.2
12.6
8.4
4.4
12.7
47.5
-1.5
27.7
1.3
12.9
6.9
25.3
10.2
19.1
4.7
19.8
LEADING CITY SHOPPING CENTRES
Source: Senken; JapanConsuming.
Total Hhold Apparel Food

-0.9
-1.2
-2.3
-3.1
-2.0
-1.6
-1.7
-2.0
-4.8
-6.5
-5.8
5.0
1.5
1.7
3.7
1.9
5.5
-14.2
7.5
7.1
1.7
13.0
1.7
2.3
0.5
-2.6
1.0
-2.2
-2.8
-8.4
3.4
1.0
-0.1
-0.4
12.8
1.2
1.9
-3.6
-2.2
3.3
4.4
13.2
0.0
2.6
3.1
-5.1
0.5
-14.3
4.7
-1.0
-2.9
1.5
-1.1
-12.5
-2.8
-8.0
-1.1
9.8
-9.5
Sales
m
By Major Metropolitan Areas
Sapporo
11,352
Sendai
5,850
Tokyo
105,535
Yokohama
25,417
Nagoya
26,159
Kyoto
17,909
Osaka
59,327
Kobe
11,414
Hiroshima
9,511
Fukuoka
14,762
Total 287,236
By Region
Hokkaido
2,361
Tohoku
7,616
Kanto
64,558
10,876
Chubu
Kinki
15,119
Chugoku
10,027
Shikoku
6,813
Kyushu
22,631
Total 140,002
National Total 427,238
Aug/
YonY Ratio Jul
%
%
%
-0.5
-1.5
1.3
0.8
-1.3
-7.5
2.5
0.5
-1.9
2.4
0.5
2.7
1.4
24.7
5.9
6.1
4.2
13.9
2.7
2.2
3.5
67.2
-12.1
-27.9
-23.2
-19.2
-25.1
-14.7
-26.1
-19.0
-25.6
-18.1
-22.6
-2.3
0.6
-0.2
1.8
-2.9 15.1
-2.3
2.5
-1.3
3.5
-2.1
2.3
0.2
1.6
-0.1
5.3
-1.9 32.8
-0.3 100.0
-9.7
-7.4
-21.0
-19.2
-10.9
-18.4
-29.5
-21.4
-19.4
-21.6
Men's Apparel
22,300
Women's Apparel
82,444
Childrens Apparel
9,014
Other Apparel
11,058
Accessories
55,303
Cosmetics
27,124
Jewellery etc
21,785
Other General Goods
19,102
Household Goods
21,535
Foods
126,516
Restaurants
16,537
Services
5,576
Other
8,944
Total 427,238
Chain Store Sales by Category
Foods
719,257
Men's Apparel
14,864
Women's Apparel
26,526
Other Apparel
46,848
Household Goods
88,987
Medicines & Cosmetics
36,809
Furniture & Interior
43,019
Electrical Goods
11,347
Other Household
39,343
Services
3,375
Other
67,107
Total 1,097,482
8.0
4.0
W: 7.83 H: 10.02
Cols:
3.56, 1.52 0.92x3
0
-4.0
-8.0
-12.0
Categories:
M 7.8J x 12.08
J A
GMS CHAINS
Use Chose-go
12.0
8.0
4.0
0
-4.0
-8.0
-12.0
DEPARTMENT STORES
12.0
8.0
4.0
DPS/GMS CHAIN SALES BY CATEGORY

Sales
m
Department Store Sales by Category
12.0
Jul/
YonY Ratio Jun
%
%
%
0
-4.0
-8.0
-12.0
1.5
5.2
-2.4 19.3
3.5
2.1
-0.4
2.6
1.6 12.9
4.1
6.3
-4.2
5.1
2.3
4.5
-2.4
5.0
-0.6 29.6
-2.8
3.9
-0.9
1.3
5.2
2.1
-0.3 100.0
-33.5
-28.2
-16.7
-21.1
-17.8
-2.1
-17.9
-0.6
-15.5
-27.1
3.3
6.6
-16.7
-21.6
1.0 65.5
3.9
-5.5
1.4 -24.7
-6.6
2.4 -21.4
-1.2
4.3 -1.0
0.6
8.1
1.1
-2.5
3.4
8.8
-0.7
3.9 -8.9
-8.0
1.0 -14.2
-2.1
3.6 -7.4
-7.8
0.3 -2.3
-2.3
6.1
1.0
-0.1 100.0
0.9
Note: YonY figures are for same store sales only for both Department Stores and Chain
Stores. Source: JDSA, JCSA, JapanConsuming.
CONVENIENCE STORES
12.0
8.0
4.0
0
-4.0
-8.0
-12.0
SHOPPING CENTRES
12.0
8.0
4.0
0
-4.0
-8.0
-12.0
Last 12 months
Previous 12 months
All figures Percentage change in same store sales (except Retail

sales overall). Sources: METI; JDSA; JCSA; JCSC; JapanConsuming.
GMS CHAINS AND SUPERMARKETS (PREVIOUS MONTH)
July (YonY%)
Kanto & Nagoya
Lumine Shinjuku
Lumine Est
Shinjuku MyLord
Lumine Ikebukuro
Shibuya Parco
Shibuya 109
Atre Ebisu
Tama Plaza Terrace
Tamagawa Takashimaya SC
Lumine Omiya
Lumine Yokohama
Atre Kawasaki
Shinyurigaoka OPA
Central Park, Nagoya
Osaka to Kyushu
OPA Kawaramachi
Hankyu Sanbanchi
HEP Five
Lucua
Diamor Osaka
Keihan Mall
Shinsaibashi Opa
Nanba City
Sannomiya Opa
Tennoji Mio
Solaria Plaza
Tenjin Core
0.5
1.9
-1.2
-7.0
-2.9
-4.6
-3.6
-7.6
2.1
6.0
0.0
9.5
-10.1
-5.0
-3.3
-20.6
3.7
RETAIL OVERALL
DEPARTMENT STORE SALES BY REGION
Jul/
Jun
%
-14.4
4.1
-1.4
-3.3
1.1
-1.5
-11.7
-8.8
-8.0
-4.9
2.7
-9.4
-17.7
2.6
-3.5
-3.6
-2.4
-15.6
-13.3
-11.6
-4.5
-2.0
-11.0
-12.4
8.1
5.6
-0.3
5.7
-1.1
-32.3
0.7
-5.2
12.6
117.2
-12.0
1
2
3
4
5
6
7
9
8
10
11
13
16
15
12
14
17
18
19
Company
Aeon Group
Ito-Yokado
Uny
Life Corporation
Daiei
Izumi
York Benimaru
Maruetsu
Heiwado
Fuji
Beisia
Izumiya
Coop Kobe
Kasumi
Okuwa
Summit
Tokyu Store
Inageya
Tobu Store
Total
Sales
Jul/Jun
Space
1,000
Sales
YonY
mn
%
1,000 sqm sqm
12.0
568,400
80,246
-5.8
1,639
0
55,120
-7.2
1,669
0
8.7
2
47,686
619
46,493
-7.7
1,025
7
4.3
5
42,186
1,217
32,107
4.5
541
0
4.6
1
28,753
333
26,389
1.7
765
0
-2.1
0
24,517
691
23,056
-4.4
732
2
-4.4
0
22,318
542
20,615
-0.5
231
0
7.9
2
20,238
266
-8.3
-4
19,765
449
19,705
-0.8
187
0
-1.7
-3
16,507
158
15,573
19.3
189
0
1.7
0
6,970
113
548,244
-0.9
11,366
10
Jul/Jun
Store
Store
Nos
Nos
0
2,590
180
0
226
0
1
244
197
1
1
91
189
0
2
274
141
0
0
98
123
1
0
94
163
0
1
154
-3
168
109
0
0
83
135
0
0
62
2,731
3
Sales/
sqm
48,960
33,026
77,037
45,359
34,664
59,348
86,345
34,495
35,480
31,497
41,177
89,242
76,083
44,020
105,374
104,475
82,397
61,681
48,235
Sales/
Store
m
219
446
244
195
236
464
170
105
187
250
187
237
126
131
118
181
199
115
112
201
Notes: JC publishes official consolidated sales, sales increase for Aeon Group and total number of GMS and supermarkets. All other sales figures in the chart are parent only, so Aeon
Group figures are omitted from the total. For all companies: sales space and store numbers are not updated monthly. Source: NMJ; Japan Chain Store Association; Aeon Company
Reports; JapanConsuming.
W: 15.55 H:9.42
0.71, 2.76, 1.7, 1.19, 1.7, 1.19, 1.7, 1.19, 1.7, 1.7
TOP 100 MARKETS ORDER FORM

Fax to: +813-4496-6421
or order online www.japanconsuming.com
Billing Name & Address (Block Capitals Please)

If paying by card, please provide us with the billing address of your card. If paying by invoice, please provide the address of your company
Name
Position/Title Organization
Address

City State/County
Zip/Post code Country
Telephone E-mail
Send me Japans Top 100 Consumer Markets as follows:

(If you wish to be invoiced or charged in Yen, US$ or at the rate of exchange of the day please indicate here:
PDF Download
2,000 1,500 (25% off for early orders)
Site License
3,500 2,450 (30% off for early orders)
Payment Details
Invoice my company at the above address for payment within 30 days
Charge to my credit card _________________
VISA
Mastercard
(PLEASE NOTE THAT CARD STATEMENTS WILL SHOW PAYMENT TO SENSU LTD or JAPANCONSUMING)
Card Number Expiry Date: ____/_____

Security Code (last 3 digits on back of card by signature tape): ____________ Start Date: ____/_____
Signature
FOR MORE DETAILS CONTACT JAPAN CONSUMING: SALES@JAPANCONSUMING.COM

Onsuming: RIP: Aeon To Delete Daiei

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Onsuming: RIP: Aeon To Delete Daiei

Загружено:

Авторское право:

Доступные форматы

JAPAN CONSUMING

REAL INSIGHT ON JAPANESE CONSUMER MARKETS

SEPTEMBER RETAIL SNAPSHOT

RIP: Aeon to delete Daiei

no one, Marubeni invited Aeon back into the

Publisher & Editor

JapanConsuming is for companies with an

in Aeon SCs shortly. Aeon Okayama will also

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

Expenditure, Income, Savings

Demographics & Economy

Okayamas ranking in the top 100 markets

% Difference to Japan Average (Japan = 0): -100 to +100

Consumer Power Ranking

tion from nearby towns and cities. For Aeon, it

METROCITY OPENS POP UP

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

dining, and sees an opportunity to

Brunello Cucinelli Japan expands

than expand store numbers at present, Brunello

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

will offer workshops, a kind of mini, upmarket

ISETAN-MITSUKOSHI TO OPEN IN TOKYO MIDTOWN

sister store across the road, all other

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

designs in the past, more distinct

GINZA6 BEGINS TENANT

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

in distribution with a total capital value of around

Lawson to acquire Seijo Ishii

Rumour has it that both the serial acquirer,

Higher savings does not signify a

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

for only 7.3% of men worryingly,

Lawson acquired Shop 99 several years ago,

rent and new Lawson private brand lines will be

Working population declines by 4

In April, the government introduced new

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

Expenditure, Income, Savings

Demographics & Economy

Hakodates rapid decline in Top 100 Markets

a 17% increase in water rates is a good example

% Difference to Japan Average (Japan = 0): -100 to +100

Consumer Power Ranking

Source: JapanConsuming Report.

Sazaby sells Starbucks stake

in with cheap and very popular takeaway coffee

Dila with 46 new tenants and will open

SINGLE USER SUBSCRIPTION: Please respect our copyright

news & analysis

Given that few Japanese consumers expect this kind of consistent,

IMPORT BRAND MARKET UP 20%

This really is a conbini: Familymart A-Coop

Back in May, Familymart also completed a deal

SINGLE USER SUBSCRIPTION: Please respect our copyright

Card Number Expiry Date: /_