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. 

Event-Driven

<ul>
<li>Aeon is on the acquisition trail again and not only in the drugstore sector through its <a href="https://www.smartkarma.com/entities/welcia-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20895:1" rel="noopener">Welcia Holdings (3141 JP)</a> subsidiary.</li>
<li>Japan's biggest retailer also consolidated its hold on the island of Shikoku by increasing its stake in Fuji and will now own more than 20% of all retail sales.</li>
<li>Signalling its ambitions to carve out a large share of the discount market, Aeon also acquired the 100 YEN retailer, <a href="https://www.smartkarma.com/entities/can-do-co-ltd" target="_blank" data-smartkarma-citation="entities:6879:1" rel="noopener">Can Do Co Ltd (2698 JP).</a>
</li>
</ul>


Aeon is on the acquisition trail again and not only in the drugstore sector through its Welcia Holdings (3141 JP) subsidiary.
Japan's biggest retailer also consolidated its hold on the island of Shikoku by increasing its stake in Fuji and will now own more than 20% of all retail sales.
Signalling its ambitions to carve out a large share of the discount market, Aeon also acquired the 100 YEN retailer, Can Do Co Ltd (2698 JP).



Aeon Consolidates Through Fuji and Steps up Discounting Via Can Do

Equity Bottom-Up

<ul>
<li>The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.</li>
<li>The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.</li>
<li>As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.</li>
</ul>


The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.
The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.
As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.


Thematic (Sector/Industry)

Convenience store (CVS) retailing remains the most dynamic and innovative physical store sector. It is now 50 years since the first Seven Eleven opened and the sector wide drop in sales in 2020 was the first in its history.Whereas department stores also took a battering last year and are likely to struggle to recover, convenience stores should bounce back quickly, including implementing lessons learned in last year’s crisis.That does not mean the format faces no problems, with labour shortages, overly strict operating procedures and an ageing population of store owners (many are now reaching retirement age with no succession in place) all issues that need solutions, but its willingness and ability to adopt new technologies and adapt to the market will continue to keep CVS strong.The following is an annual in-depth review of the entire CVS sector providing context for investors in any of the big CVS retailers (and their competing formats) as well as reviews of each major firm's KPIs.

Convenience store (CVS) retailing remains the most dynamic and innovative physical store sector. It is now 50 years since the first Seven Eleven opened and the sector wide drop in sales in 2020 was the first in its history.Whereas department stores also took a battering last year and are likely to struggle to recover, convenience stores should bounce back quickly, including implementing lessons learned in last year’s crisis.That does not mean the format faces no problems, with labour shortages, overly strict operating procedures and an ageing population of store owners (many are now reaching retirement age with no succession in place) all issues that need solutions, but its willingness and ability to adopt new technologies and adapt to the market will continue to keep CVS strong.The following is an annual in-depth review of the entire CVS sector providing context for investors in any of the big CVS retailers (and their competing formats) as well as reviews of each major firm's KPIs.

Convenience Stores: First Decline in 50 Years

Aeon is aiming high in e-commerce. It has Ocado technology coming online in 2023 and says it will spend ¥450 billion in new investment. Last month, it introduced iAeon, a new app that combines access to services across its entire group with an existing database of some 120 million users and more than one billion customer visits a year. In 2019, e-commerce accounted for an estimated 2% of Aeon’s total sales. Its medium term plan calls for an ‘Accelerated and Evolved Digital Shift’ by 2025 with e-commerce sales of ¥1 trillion or around 10-15% of total turnover.

Aeon is aiming high in e-commerce. It has Ocado technology coming online in 2023 and says it will spend ¥450 billion in new investment. Last month, it introduced iAeon, a new app that combines access to services across its entire group with an existing database of some 120 million users and more than one billion customer visits a year. In 2019, e-commerce accounted for an estimated 2% of Aeon’s total sales. Its medium term plan calls for an ‘Accelerated and Evolved Digital Shift’ by 2025 with e-commerce sales of ¥1 trillion or around 10-15% of total turnover.

Aeon: Investing Online, but GMS Struggles

Contraction in apparel consumption aside, Japanese fashion retailers and brands have made dramatic strides to pull in customers online with e-commerce sales up 24% last year according to one survey, faster than the growth in e-commerce overall. Even some wholesalers are succeeding digitally. 
What the results show is a breakthrough shift to online with likely further growth this year, taking the online channel’s share above 25% and more than 30% for many of those firms with higher online ratios.

Contraction in apparel consumption aside, Japanese fashion retailers and brands have made dramatic strides to pull in customers online with e-commerce sales up 24% last year according to one survey, faster than the growth in e-commerce overall. Even some wholesalers are succeeding digitally. 
What the results show is a breakthrough shift to online with likely further growth this year, taking the online channel’s share above 25% and more than 30% for many of those firms with higher online ratios.

Japan

AEON CO., LTD. operates general merchandise stores, supermarkets, and convenience stores throughout Japan. The Company is also engaged in women's and casual clothing store business, development business of commercial property, and financing service through the subsidiaries.

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Aeon Co Ltd (8267 JP)

Aeon Consolidates Through Fuji and Steps up Discounting Via Can Do

Aeon continues to consolidate retail share. Its acquisition of Fuji will give it 20% share of all retail sales in Shikoku while its purchase of Can...

Michael Causton

Matsukiyo Cocokara: Together at Last

MatsukiyoCocokara may top the drugstore ranking post-merger but Welcia and Tsuruha have grown much faster and may take the lead again soon given...

Michael Causton

Convenience Stores: First Decline in 50 Years

For any investor in Japan's consumer staples sector, the convenience store sector is a key component. The following is an in-depth analysis of the...

Michael Causton

Aeon: Investing Online, but GMS Struggles

Aeon was far behind in e-commerce, just like its rival for the top spot in Japanese retailing, Seven & I. Unlike Seven & I it has a long-term plan...

Michael Causton

Japan Online Fashion Sales Soar

Before, the boom in online was just a theory but the numbers now make it clear that Japanese consumers have shifted their spending habits,...

Michael Causton

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