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 following is an in-depth review of the retail sector by format with a brief overview of incomes and consumption trends and metrics before that. For any investor looking at the Japanese consumer/retail space, this insight will provide a rapid overview of all the major trends.2020 was a year to remember, although not for good reasons. While the news was overwhelmingly negative given the devastation that the pandemic caused to so many lives, for Japan as a country the experience could become a catalyst to spur positive change.No matter how much we might never wish to repeat the last 12 months, those governments and companies that learn from the experience will be better positioned whenever a new pandemic emerges.Department stores, convenience stores, and most fashion chains had a horrible year as so many people stayed away from major shopping areas, but many other retailers actually had stellar years, with further upside still to come.

The following is an in-depth review of the retail sector by format with a brief overview of incomes and consumption trends and metrics before that. For any investor looking at the Japanese consumer/retail space, this insight will provide a rapid overview of all the major trends.2020 was a year to remember, although not for good reasons. While the news was overwhelmingly negative given the devastation that the pandemic caused to so many lives, for Japan as a country the experience could become a catalyst to spur positive change.No matter how much we might never wish to repeat the last 12 months, those governments and companies that learn from the experience will be better positioned whenever a new pandemic emerges.Department stores, convenience stores, and most fashion chains had a horrible year as so many people stayed away from major shopping areas, but many other retailers actually had stellar years, with further upside still to come. 

Japan Retail Full Review 2020-2021: Some Retail Sectors Outperform in a Pandemic

Supermarkets were much better prepared for Japan’s second state of emergency compared to the first last Spring. Most now have systems in place, both to make shopping safe and quick in stores, but also to offer a robust online ordering model.There is now an opportunity for the best mid-sized chains to shine, with companies like Yaoko suggesting those customers used to ordering at the bigger online stores are switching to ordering from local chains.

Supermarkets were much better prepared for Japan’s second state of emergency compared to the first last Spring. Most now have systems in place, both to make shopping safe and quick in stores, but also to offer a robust online ordering model.There is now an opportunity for the best mid-sized chains to shine, with companies like Yaoko suggesting those customers used to ordering at the bigger online stores are switching to ordering from local chains.

2nd Emergency Means New Opportunities for Supermarkets

Equity Bottom-Up

Tokushimaru started as a local mobile supermarket in Shikoku but, since being made a subsidiary of <a href="https://www.smartkarma.com/entities/oisix-ra-daichi-inc" target="_blank" data-smartkarma-citation="entities:10145:1" rel="noopener">Oisix ra daichi (3182 JP)</a> in 2016, has become a nationwide network of vans franchised by a growing number of supermarkets.Almost all of its customers are elderly – Japan's fastest growing population segment – and it takes pride in serving communities.Now, with <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> Ito-Yokado planning to add most of its store network to the system, Tokushimaru will grow even faster.There are currently around 700 Tokushimaru vans in operation and it expects to hit 1,000 this Spring, with a long-term goal of 5,000.As reported <a href="https://www.smartkarma.com/insights/mobile-shops-and-flexible-delivery" target="_blank" rel="noopener">before on Smartkarma</a>, shops-on-wheels is becoming a major new trend as retailers seek out customers where they are rather than waiting for them to come to their stores.

Tokushimaru started as a local mobile supermarket in Shikoku but, since being made a subsidiary of Oisix ra daichi (3182 JP) in 2016, has become a nationwide network of vans franchised by a growing number of supermarkets.Almost all of its customers are elderly – Japan's fastest growing population segment – and it takes pride in serving communities.Now, with Seven &amp; I Holdings' (3382 JP) Ito-Yokado planning to add most of its store network to the system, Tokushimaru will grow even faster.There are currently around 700 Tokushimaru vans in operation and it expects to hit 1,000 this Spring, with a long-term goal of 5,000.As reported before on Smartkarma, shops-on-wheels is becoming a major new trend as retailers seek out customers where they are rather than waiting for them to come to their stores. 

Department store sales in 2020 dropped to levels not seen since 1975 and the latest state of emergency has led to more store closures. In some ways, the remaining department stores did well to achieve CY2020 sales only 25% lower than the year before and city centre stores should revive once traffic returns.Meanwhile, there are opportunities to rethink how former department store buildings can be redeveloped.

Department store sales in 2020 dropped to levels not seen since 1975 and the latest state of emergency has led to more store closures. In some ways, the remaining department stores did well to achieve CY2020 sales only 25% lower than the year before and city centre stores should revive once traffic returns.Meanwhile, there are opportunities to rethink how former department store buildings can be redeveloped.

Japan's Department Store Sales Drop to 1975 Levels

Barney’s New York will close its Shinjuku store at the end of February.Although the iconic fashion store had hoped to close only temporarily, Seven &amp; I took the decision  to close permanently due to a variety of factors: the age of the store, the high rent in an area with falling footfall, and the declining popularity of large format stores like Barney’s Shinjuku in general.While the store is a tiny part of Seven &amp; I's retail empire, the failure to make Barney's New York an integral part of its business is a reflection of the wider troubles at Seven &amp; I to make any part of its business work as well as Seven Eleven.

Barney’s New York will close its Shinjuku store at the end of February.Although the iconic fashion store had hoped to close only temporarily, Seven &amp; I took the decision  to close permanently due to a variety of factors: the age of the store, the high rent in an area with falling footfall, and the declining popularity of large format stores like Barney’s Shinjuku in general.While the store is a tiny part of Seven &amp; I's retail empire, the failure to make Barney's New York an integral part of its business is a reflection of the wider troubles at Seven &amp; I to make any part of its business work as well as Seven Eleven.

Seven & I to Close Barney’s New York Shinjuku

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)

Japan Retail Full Review 2020-2021: Some Retail Sectors Outperform in a Pandemic

An in-depth update for investors in Japan's retail and consumer space on Japan's retail sector by retail type as well as a review of the impact of...

Michael Causton

2nd Emergency Means New Opportunities for Supermarkets

Japanese supermarkets suffered from genteel decline in the decade to 2020. And then Covid-19 forced everyone home, resulting in a propensity to...

Michael Causton

Tokushimaru: Oisix's Mobile Super Star

Shops-on-wheels is coming of age in Japan. Oisix is leading the charge through its Tokushimaru subsidiary which also happens to target Japan's...

Michael Causton

Japan's Department Store Sales Drop to 1975 Levels

Department stores have been hit hard by the current crisis but were struggling before that. As a result, sales have fallen to 1975 levels. Sales...

Michael Causton

Seven & I to Close Barney’s New York Shinjuku

Seven & I has struggled to make any of its acquisitions work. Barney's NY is just one of them along with Sogo Seibu and others. Seven & I should...

Michael Causton

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