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. 

Equity Bottom-Up

<ul>
<li>Seven &amp; I has finally sold Sogo Seibu to Fortress Investments.</li>
<li>It will be pleased to have offloaded a loss-making format it never really understood but at a cost – it will write off more than ¥90 billion in loans.</li>
<li>Fortress will immediately sell the land under Seibu Ikebukuro and some other assets to Yodobashi with suggestions of major redevelopment of both Ikebukuro and Shibuya.</li>
</ul>


Seven &amp; I has finally sold Sogo Seibu to Fortress Investments.
It will be pleased to have offloaded a loss-making format it never really understood but at a cost – it will write off more than ¥90 billion in loans.
Fortress will immediately sell the land under Seibu Ikebukuro and some other assets to Yodobashi with suggestions of major redevelopment of both Ikebukuro and Shibuya.


Bargain Sale at Sogo Seibu as Seven & I Finally Capitulates

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>Sogo &amp; Seibu’s labor union threatens strike if job protection talks stall. This emphasizes the number of considerations <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> had to consider during changes.</li>
<li>Had ValueAct shown more patience, they might have worked with Seven &amp; I to improve the struggling Eto Yokado supermarkets business.</li>
<li>Thus, ValueAct's investor activism campaign seem unlikely to achieve a full restructuring of underperforming businesses at Seven &amp; I.</li>
</ul>


Sogo &amp; Seibu’s labor union threatens strike if job protection talks stall. This emphasizes the number of considerations Seven &amp; I Holdings (3382 JP) had to consider during changes.
Had ValueAct shown more patience, they might have worked with Seven &amp; I to improve the struggling Eto Yokado supermarkets business.
Thus, ValueAct's investor activism campaign seem unlikely to achieve a full restructuring of underperforming businesses at Seven &amp; I.


Seven & I: An Update on Investor Activism

<ul>
<li>Inflation, having peaked at 4.3% in January 2023, has been on a downward trend throughout the year, with figures dropping to 2.8% in November and further to 2.6% by December.</li>
<li>In this insight, we analyze the recent quarterly performance of <a href="https://www.smartkarma.com/entities/yakult-honsha-co-ltd" target="_blank" data-smartkarma-citation="entities:17153:1" rel="noopener">Yakult Honsha (2267 JP)</a>, Nissin, and Seven &amp; I, Japanese Consumer Staples companies discussed in our prior Smartkarma Original.</li>
<li>While <a href="https://www.smartkarma.com/entities/nissin-foods-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:12548:1" rel="noopener">Nissin Foods Holdings (2897 JP)</a> showcased excellent performance, Yakult and <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> faced struggles in their recent quarters.</li>
</ul>


Inflation, having peaked at 4.3% in January 2023, has been on a downward trend throughout the year, with figures dropping to 2.8% in November and further to 2.6% by December.
In this insight, we analyze the recent quarterly performance of Yakult Honsha (2267 JP), Nissin, and Seven &amp; I, Japanese Consumer Staples companies discussed in our prior Smartkarma Original.
While Nissin Foods Holdings (2897 JP) showcased excellent performance, Yakult and Seven &amp; I Holdings (3382 JP) faced struggles in their recent quarters.


Japan Consumer Staples Update: Inflation Looks a Blessing in Disguise for Those with Pricing Power

<ul>
<li>Japanese inflation, which peaked at 4.3% in January 2023, gradually decreased to 3.5%, 3.2%, 3.3%, 3.3%, and 3.2% in the subsequent months of 2023.</li>
<li>Inflation rates remained stable for most items, excluding Fuel, Electricity, Water, and fresh vegetables, indicating the persistence of cost-push inflation.</li>
<li>In this insight, we analyze the recent quarterly performance of Yakult, Nissin, and Seven &amp; I, Japanese Consumer Staples companies discussed in our prior Smartkarma Original.</li>
</ul>


Japanese inflation, which peaked at 4.3% in January 2023, gradually decreased to 3.5%, 3.2%, 3.3%, 3.3%, and 3.2% in the subsequent months of 2023.
Inflation rates remained stable for most items, excluding Fuel, Electricity, Water, and fresh vegetables, indicating the persistence of cost-push inflation.
In this insight, we analyze the recent quarterly performance of Yakult, Nissin, and Seven &amp; I, Japanese Consumer Staples companies discussed in our prior Smartkarma Original.


Thematic (Sector/Industry)

<ul>
<li>Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.</li>
<li>The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.</li>
<li>This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.</li>
</ul>


Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.
The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.
This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.


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)

Bargain Sale at Sogo Seibu as Seven & I Finally Capitulates

Seven & I sells Sogo Seibu to Fortress Investments, but has to forgive ¥90 billion in debt. Fortress plans to sell the Ikebukuro land and other...

Michael Causton

Seven & I: An Update on Investor Activism

Sogo & Seibu's labor union threatens strike if job protection talks stall, highlighting considerations for Seven & I Holdings during changes.

Oshadhi Kumarasiri

Japan Consumer Staples Update: Inflation Looks a Blessing in Disguise for Those with Pricing Power

Inflation in Japan has been on a decline over the year, reaching 2.6% in December 2023 after peaking at 4.3% twelve months prior.

Oshadhi Kumarasiri

Japan Consumer Staples Update: Inflation Looks a Blessing in Disguise for Those with Pricing Power

Japanese inflation peaked at 4.3% in January 2023 but decreased to 3.5%, 3.2%, 3.3%, 3.3%, and 3.2% in the following months. For most items except...

Oshadhi Kumarasiri

Japan's Best Performing Retailers

There were strong improvements in both sales and profits for leading retailers last year and the following insight looks at the main winners and...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bargain Sale at Sogo Seibu as Seven & I Finally Capitulates

​Seven & I sells Sogo Seibu to Fortress Investments, but has to forgive ¥90 billion in debt. Fortress plans to sell the Ikebukuro land and other...

Michael Causton

Seven & I: An Update on Investor Activism

​Sogo & Seibu's labor union threatens strike if job protection talks stall, highlighting considerations for Seven & I Holdings during changes.

Oshadhi Kumarasiri

Japan Consumer Staples Update: Inflation Looks a Blessing in Disguise for Those with Pricing Power

Inflation in Japan has been on a decline over the year, reaching 2.6% in December 2023 after peaking at 4.3% twelve months prior.

Oshadhi Kumarasiri

Japan Consumer Staples Update: Inflation Looks a Blessing in Disguise for Those with Pricing Power

Japanese inflation peaked at 4.3% in January 2023 but decreased to 3.5%, 3.2%, 3.3%, 3.3%, and 3.2% in the following months. For most items except...

Oshadhi Kumarasiri

Japan's Best Performing Retailers

There were strong improvements in both sales and profits for leading retailers last year and the following insight looks at the main winners and...

Michael Causton

Seven & I sells Sogo Seibu to Fortress Investments, but has to forgive ¥90 billion in debt. Fortress plans to sell the Ikebukuro land and other...

Sogo & Seibu's labor union threatens strike if job protection talks stall, highlighting considerations for Seven & I Holdings during changes.