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

Kintetsu Department Store / Equity Bottom-Up

<ul>
<li>Kintetsu has been expanding the number of direct franchises in its stores for the past five years.</li>
<li>It now plans to open as many as 100 franchises both in its own properties and in third-party locations, including new franchises from overseas.</li>
<li>The department store has set a target for nearly 40% of sales from this source by 2026.</li>
</ul>


Kintetsu has been expanding the number of direct franchises in its stores for the past five years.
It now plans to open as many as 100 franchises both in its own properties and in third-party locations, including new franchises from overseas.
The department store has set a target for nearly 40% of sales from this source by 2026.


Kintetsu Uses Franchise Model to Diversify from Department Stores

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.


<ul>
<li>Something remarkable has happened in the department store sector. A year ago, both big city stores and those in the regions were all still well behind sales levels in 2010. </li>
<li>But stores in the largest 10 cities exceeded 2010 sales levels by 2% last year. Emphasising the yawning gap, regional stores extended their losses with sales down 42% on 2010.</li>
<li>The elite have also suddenly started making money. A lot of it. We now have a (very profitable) luxury retail sector and a (poor returning) middle-market general merchandise store sector.</li>
</ul>


Something remarkable has happened in the department store sector. A year ago, both big city stores and those in the regions were all still well behind sales levels in 2010. 
But stores in the largest 10 cities exceeded 2010 sales levels by 2% last year. Emphasising the yawning gap, regional stores extended their losses with sales down 42% on 2010.
The elite have also suddenly started making money. A lot of it. We now have a (very profitable) luxury retail sector and a (poor returning) middle-market general merchandise store sector.


Japanese Department Stores: The Elite Profit Machines

<ul>
<li>If you need a quick overview of Japan's retail sectors and the winners and losers within, the following provides an update on 2023 and where things are headed in 2024.</li>
<li>Drugstore consolidation continues but so does the sector's encroachment on supermarkets while leaders in department stores are delivering record profits and lifestyle retailing is back.</li>
<li>Some of the best performers compared to initial forecasts include Matsuya, ABC Mart, Adastria, Isetan-Mitsukoshi, Takashimaya, Kintetsu, J Front Retailing and Lawson.</li>
</ul>


If you need a quick overview of Japan's retail sectors and the winners and losers within, the following provides an update on 2023 and where things are headed in 2024.
Drugstore consolidation continues but so does the sector's encroachment on supermarkets while leaders in department stores are delivering record profits and lifestyle retailing is back.
Some of the best performers compared to initial forecasts include Matsuya, ABC Mart, Adastria, Isetan-Mitsukoshi, Takashimaya, Kintetsu, J Front Retailing and Lawson.


Japan Retail Update: Winners and Losers as FY2023 Ends

<ul>
<li>Some Japanese department stores enjoyed record sales in FY2022 but the gap in performance accelerated between city centre stores and the rest. </li>
<li>While numerous regional properties continue to struggle, the best exemplars of urban department store retailing are flourishing as they become true luxury emporiums for the wealthy.</li>
<li>Department stores have rarely provided growth in either sales or OP but there is now a chance that the better chains will emerge as quite profitable entities.</li>
</ul>


Some Japanese department stores enjoyed record sales in FY2022 but the gap in performance accelerated between city centre stores and the rest. 
While numerous regional properties continue to struggle, the best exemplars of urban department store retailing are flourishing as they become true luxury emporiums for the wealthy.
Department stores have rarely provided growth in either sales or OP but there is now a chance that the better chains will emerge as quite profitable entities.


The Great Divide: Isetan and Hankyu Break Records as Regional Department Stores Close

Japan

Kintetsu Department Store Co., Ltd. operates department stores mainly in Osaka, Nara, Kyoto, and other Kansai prefectures. The Company sells clothing, foods, as well as other household items. Kintetsu Department Store also operates restaurants.

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Kintetsu Department Store (8244 JP)

Kintetsu Uses Franchise Model to Diversify from Department Stores

Kintetsu aims to open 100 franchises, targeting 40% of sales from this source by 2026, as part of its expansion strategy, with some positive...

Michael Causton

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

Japanese Department Stores: The Elite Profit Machines

Dept. stores in big cities have grown 2% since 2010, but regional are down 42%, a massive gap. The elite luxury sector is thriving, with big...

Michael Causton

Japan Retail Update: Winners and Losers as FY2023 Ends

Summary: Japan's retail sectors in 2023 saw drugstore consolidation and encroachment on supermarkets, while dept. stores and lifestyle retailing...

Michael Causton

The Great Divide: Isetan and Hankyu Break Records as Regional Department Stores Close

Japan's department stores have rarely provided good returns due to anaemic profit margins. This is changing with Japan's best chains and stores now...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Kintetsu Uses Franchise Model to Diversify from Department Stores

​Kintetsu aims to open 100 franchises, targeting 40% of sales from this source by 2026, as part of its expansion strategy, with some positive...

Michael Causton

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

Japanese Department Stores: The Elite Profit Machines

​Dept. stores in big cities have grown 2% since 2010, but regional are down 42%, a massive gap. The elite luxury sector is thriving, with big...

Michael Causton

Japan Retail Update: Winners and Losers as FY2023 Ends

​Summary: Japan's retail sectors in 2023 saw drugstore consolidation and encroachment on supermarkets, while dept. stores and lifestyle retailing...

Michael Causton

The Great Divide: Isetan and Hankyu Break Records as Regional Department Stores Close

Japan's department stores have rarely provided good returns due to anaemic profit margins. This is changing with Japan's best chains and stores now...

Michael Causton

Kintetsu aims to open 100 franchises, targeting 40% of sales from this source by 2026, as part of its expansion strategy, with some positive...

Dept. stores in big cities have grown 2% since 2010, but regional are down 42%, a massive gap. The elite luxury sector is thriving, with big...

Summary: Japan's retail sectors in 2023 saw drugstore consolidation and encroachment on supermarkets, while dept. stores and lifestyle retailing...