Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<ul>
<li>Convenience store retailing was one of the worst hit retail sectors during Covid as commuters and students stayed at home. Recovery has taken time but is on track. </li>
<li>Recovery aside, however, the sector has reached saturation, so the only way to grow is to maximise traffic to stores and the amount each customer spends.</li>
<li>This is forcing unprecedented innovation on a sector already famous for it but it won't be enough to generate the growth rates of the past.</li>
</ul>


Convenience store retailing was one of the worst hit retail sectors during Covid as commuters and students stayed at home. Recovery has taken time but is on track. 
Recovery aside, however, the sector has reached saturation, so the only way to grow is to maximise traffic to stores and the amount each customer spends.
This is forcing unprecedented innovation on a sector already famous for it but it won't be enough to generate the growth rates of the past.


Japanese Convenience Stores Recover but Where Will Future Growth Come From?

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>Earlier today, <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>’s board decided to sell the underperforming department store business Sogo Seibu to the SoftBank Group controlled Fortress Investment Group for around ¥200bn.</li>
<li>The sale of Sogo &amp; Seibu looks like a positive development from all angles, but it could be already priced in as the rumours were there from February 2022 onwards.</li>
<li>Meanwhile, there are downside risks to Seven &amp; I shares in the short term from falling gas prices and rising inflation in the US.</li>
</ul>


Earlier today, Seven &amp; I Holdings (3382 JP)’s board decided to sell the underperforming department store business Sogo Seibu to the SoftBank Group controlled Fortress Investment Group for around ¥200bn.
The sale of Sogo &amp; Seibu looks like a positive development from all angles, but it could be already priced in as the rumours were there from February 2022 onwards.
Meanwhile, there are downside risks to Seven &amp; I shares in the short term from falling gas prices and rising inflation in the US.


Seven & I Parts with Sogo & Seibu and Pockets ¥200bn

Japan Specialist

Mark Chadwick

<ul>
<li>
 Good Morning Japan: We strive to provide the very best breaking macro, stock and thematic overnight news and market moves that will impact the trading day in Japan.</li>
<li>
US stock rally fizzles as Red Wave  downgraded to a mere ripple. Bitcoin meltdown takes center stage as market suddenly cares. Disney hit hard but META +5% on job cuts </li>
<li>NKY futs  indicate-70bp vs cash.  8th COVID Wave - but no restrictions. S&amp;I sells Seibu &amp; Sogo; PE bid for Uzabase; Speculation of Softbank going private; Big NEXON buyback</li>
</ul>



 Good Morning Japan: We strive to provide the very best breaking macro, stock and thematic overnight news and market moves that will impact the trading day in Japan.

US stock rally fizzles as Red Wave  downgraded to a mere ripple. Bitcoin meltdown takes center stage as market suddenly cares. Disney hit hard but META +5% on job cuts 
NKY futs  indicate-70bp vs cash.  8th COVID Wave - but no restrictions. S&amp;I sells Seibu &amp; Sogo; PE bid for Uzabase; Speculation of Softbank going private; Big NEXON buyback


Good Morning Japan | Crypto Thursday - Crash Continues

Equity Bottom-Up

<ul>
<li>In search of ¥1 trillion in ‘digital-related’ sales by 2026, Aeon opened its first, built-from-scratch online-offline marketing store in Yokohama this month. </li>
<li>The new Aeon SC introduces a range of features and processes to make e-commerce a natural supplement to the store and the shopping experience.</li>
<li>Aeon has a way to go to reach its targets for e-commerce but is moving in the right direction and has a clearer direction than rival, Seven &amp; I.</li>
</ul>


In search of ¥1 trillion in ‘digital-related’ sales by 2026, Aeon opened its first, built-from-scratch online-offline marketing store in Yokohama this month. 
The new Aeon SC introduces a range of features and processes to make e-commerce a natural supplement to the store and the shopping experience.
Aeon has a way to go to reach its targets for e-commerce but is moving in the right direction and has a clearer direction than rival, Seven &amp; I.


<ul>
<li>With OP up by 22% YoY to beat the consensus estimate by ¥2.0bn, Seven &amp; I turned in a strong 2QFY23 along with a considerable upgrade to FY23 guidance.</li>
<li>However, the post-earnings price reaction seems to suggest that the market is a bit worried about the short-term performance of <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>’s US convenience store business.</li>
<li>In addition, the struggling non-core businesses whose future remains undecided could also be weighing in on Seven &amp; I’s price performance.</li>
</ul>


With OP up by 22% YoY to beat the consensus estimate by ¥2.0bn, Seven &amp; I turned in a strong 2QFY23 along with a considerable upgrade to FY23 guidance.
However, the post-earnings price reaction seems to suggest that the market is a bit worried about the short-term performance of Seven &amp; I Holdings (3382 JP)’s US convenience store business.
In addition, the struggling non-core businesses whose future remains undecided could also be weighing in on Seven &amp; I’s price performance.


Seven & I – The US Is About to Hit the Brakes

Japan

Seven & i Holdings Co., Ltd. is a holding company which was established through the merger of Ito-Yokado Co., Seven Eleven Japan Co., and Denny's Japan. The Company plans, manages, and operates mainly convenience stores, supermarkets, and department stores.

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Seven & I Holdings (3382 JP)

Japanese Convenience Stores Recover but Where Will Future Growth Come From?

Japanese convenience stores are innovative, relentless competitors. It is just a shame the sector is at saturation. While there is growth potential...

Michael Causton

Seven & I Parts with Sogo & Seibu and Pockets ¥200bn

Earlier today, Seven & I’s board decided to sell the underperforming department store business Sogo Seibu to the SoftBank Group controlled Fortress...

Oshadhi Kumarasiri

Good Morning Japan | Crypto Thursday - Crash Continues

Good Morning Japan: We strive to provide the very best breaking macro, stock and thematic overnight news and market moves that will impact the...

Mark Chadwick

Aeon: Making Omnichannel a Reality

Between Aeon and Seven & I, Aeon is clearly way ahead on e-commerce development and integration. Its latest store has e-commerce and digital...

Michael Causton

Seven & I – The US Is About to Hit the Brakes

With OP up by 22% YoY to beat the consensus estimate by more than ¥2.0bn, Seven & I turned in a strong quarter yet again in 2QFY23 along with a...

Oshadhi Kumarasiri

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