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)

The average growth among the top 100 shopping centres (SCs) in Japan in 2017-18 was 2.6% compared to 2.3% for the shopping centre market overall.
The top 100 SCs had average sales densities of ¥86,230 per sqm per month, compared to ¥50,833 per sqm per month for the sector overall, showing the stark contrast in performance between the best SCs (and the better developers) and the rest.
The improvement in sales by outlet malls after a retreat in 2016-17 was the big story in SC retailing last year – among the top 30 SCs by sales growth, 10 were outlet malls and all posted growth of more than 5% compared to just a single SC in 2016.
A number of developers look set to continue to perform better compared to the SC sector overall, at least in terms of tenant revenues and shopping centre operating profits: <a href="https://www.smartkarma.com/entities/3" target="_blank" data-smartkarma-citation="entities:3:1">Aeon (8267 JP)</a>, <a href="https://www.smartkarma.com/entities/5262" target="_blank" data-smartkarma-citation="entities:5262:1">Aeon Mall (8905 JP)</a>, <a href="https://www.smartkarma.com/entities/565" target="_blank" data-smartkarma-citation="entities:565:1">Mitsui Fudosan (8801 JP)</a>, and <a href="https://www.smartkarma.com/entities/566" target="_blank" data-smartkarma-citation="entities:566:1">Mitsubishi Estate (8802 JP)</a> as well as <a href="https://www.smartkarma.com/entities/14271" target="_blank" data-smartkarma-citation="entities:14271:1">East Japan Railway (9020 JP)</a> – 12 of the top 30 most efficient SCs in the country are operated by <a href="https://www.smartkarma.com/entities/14271" target="_blank" data-smartkarma-citation="entities:14271:1">East Japan Railway</a>.

The average growth among the top 100 shopping centres (SCs) in Japan in 2017-18 was 2.6% compared to 2.3% for the shopping centre market overall.
The top 100 SCs had average sales densities of ¥86,230 per sqm per month, compared to ¥50,833 per sqm per month for the sector overall, showing the stark contrast in performance between the best SCs (and the better developers) and the rest.
The improvement in sales by outlet malls after a retreat in 2016-17 was the big story in SC retailing last year – among the top 30 SCs by sales growth, 10 were outlet malls and all posted growth of more than 5% compared to just a single SC in 2016.
A number of developers look set to continue to perform better compared to the SC sector overall, at least in terms of tenant revenues and shopping centre operating profits: Aeon (8267 JP), Aeon Mall (8905 JP), Mitsui Fudosan (8801 JP), and Mitsubishi Estate (8802 JP) as well as East Japan Railway (9020 JP) – 12 of the top 30 most efficient SCs in the country are operated by East Japan Railway.

Japan's Top 100 Shopping Centres Outperforming: Who Owns What

<ul class="">
<li>Leading shopping centres in Japan recovered well in FY2017 after a tough 2016, with most forms of tenant posting better sales. 
</li>
<li>While accessories, sports and eateries did as well as expected, apparel also had a much better year compared to the tough trading in 2016.</li>
<li>Station/fashion buildings that moved to a more premium position outperformed the sector, reflecting the continued growth in incomes and assets among affluent Japanese.</li>
<li>The improvement overall reflects the better sentiment among consumers, but equally, the continued shift of spending from other forms of retail (like GMS stores) to the better shopping centres. 
</li>
<li>So far, apart from a 2.8% drop in May, sales have been positive in FY2018 too, with apparel again doing much better than in recent years, suggesting an upturn for some fashion retailers.</li>
<li>As well as sales growth, major SC developers have also become much more adept at extracting higher profits from their facilities, and we expect this trend to continue.</li>
</ul>


Leading shopping centres in Japan recovered well in FY2017 after a tough 2016, with most forms of tenant posting better sales. 

While accessories, sports and eateries did as well as expected, apparel also had a much better year compared to the tough trading in 2016.
Station/fashion buildings that moved to a more premium position outperformed the sector, reflecting the continued growth in incomes and assets among affluent Japanese.
The improvement overall reflects the better sentiment among consumers, but equally, the continued shift of spending from other forms of retail (like GMS stores) to the better shopping centres. 

So far, apart from a 2.8% drop in May, sales have been positive in FY2018 too, with apparel again doing much better than in recent years, suggesting an upturn for some fashion retailers.
As well as sales growth, major SC developers have also become much more adept at extracting higher profits from their facilities, and we expect this trend to continue.


Japan Shopping Centre Sales Grow Again in 2017-18

Japan

PARCO CO., LTD. operates shopping centers specializing in fashion shops in Kanto, Chubu, Kansai, Hokkaido, and Kyushu area.  The Company also operates playhouses and theaters.

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Parco Co Ltd (8251 JP)

Japan's Top 100 Shopping Centres Outperforming: Who Owns What

The average growth among the top 100 shopping centres (SCs) in Japan in 2017-18 was 2.6% compared to 2.3% for the shopping centre market...

Michael Causton

Japan Shopping Centre Sales Grow Again in 2017-18

Leading shopping centres in Japan recovered well in FY2017 after a tough 2016, with most forms of tenant posting better sales. While...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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