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)

<ul>
<li>OK Super is today the biggest single chain of supermarkets in Tokyo with a strong customer following thanks to its low prices.</li>
<li>It still aims to be the cheapest store in any local area, backed by aggressive buying and low cost operations, and will expand store openings this year.</li>
<li>Although it is a private company, it is a serious competitor to any listed supermarket chain in the Kanto area.</li>
</ul>


OK Super is today the biggest single chain of supermarkets in Tokyo with a strong customer following thanks to its low prices.
It still aims to be the cheapest store in any local area, backed by aggressive buying and low cost operations, and will expand store openings this year.
Although it is a private company, it is a serious competitor to any listed supermarket chain in the Kanto area.


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.

Equity Bottom-Up

<ul>
<li>With OP up by 32.1% YoY, 1QFY23 was the first genuine sign of the realisation of synergies from the Speedway acquisition.</li>
<li>There could be more good news on the horizon as various news outlets have reported that the sale of Sogo Seibu is moving closer.</li>
<li>Yet we are neutral on <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> in the short-term. We think investors needs to see the true colours of synergies for shares to break ¥6,100.</li>
</ul>


With OP up by 32.1% YoY, 1QFY23 was the first genuine sign of the realisation of synergies from the Speedway acquisition.
There could be more good news on the horizon as various news outlets have reported that the sale of Sogo Seibu is moving closer.
Yet we are neutral on Seven &amp; I Holdings (3382 JP) in the short-term. We think investors needs to see the true colours of synergies for shares to break ¥6,100.


Seven & I: Positives All Around But Upside Is Limited

Japan Specialist

Mark Chadwick

<ul>
<li>Investors should ignore the news around restructuring....it's nice but basically irrelevant</li>
<li>The long-term valuation proposition is driven by the core convenience store businesses in the US and Japan</li>
<li>Unlike Walmart, we think 7&amp;I should have a good quarter in the US and beat analyst expectations for Q1</li>
</ul>


Investors should ignore the news around restructuring....it's nice but basically irrelevant
The long-term valuation proposition is driven by the core convenience store businesses in the US and Japan
Unlike Walmart, we think 7&amp;I should have a good quarter in the US and beat analyst expectations for Q1


Seven & I (3382) | So What if Walmart Missed

Event-Driven

<ul>
<li>Initial reports suggest that Fortress Investment, part of the Softbank group of funds, is now the frontrunner in negotiations to acquire Sogo Seibu department stores from Seven &amp; I.</li>
<li>Reports suggest Fortress is already in discussions with privately owned retailer Yodobashi Camera to take over management of the chain's better stores, beginning with Seibu Ikebukuro.</li>
<li>The loss of ¥500 billion or so in turnover won't be missed not will the ¥8.8 billion losses but activist investors won't stop there.</li>
</ul>


Initial reports suggest that Fortress Investment, part of the Softbank group of funds, is now the frontrunner in negotiations to acquire Sogo Seibu department stores from Seven &amp; I.
Reports suggest Fortress is already in discussions with privately owned retailer Yodobashi Camera to take over management of the chain's better stores, beginning with Seibu Ikebukuro.
The loss of ¥500 billion or so in turnover won't be missed not will the ¥8.8 billion losses but activist investors won't stop there.


Seven & I Sale of Sogo Seibu Moves Closer

<ul>
<li>
<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> should breeze through its rather unchallenging expectations when it releases its first-quarter results next week.</li>
<li>The company has raised its previous guidance multiple times last year and we expect a similar pattern in the first half next year with 7-Eleven US continuing to exceed expectations.</li>
<li>Thus, we would buy Seven &amp; I Holdings leading up to earnings expecting a decent upside on rising guidance.</li>
</ul>



Seven &amp; I Holdings (3382 JP) should breeze through its rather unchallenging expectations when it releases its first-quarter results next week.
The company has raised its previous guidance multiple times last year and we expect a similar pattern in the first half next year with 7-Eleven US continuing to exceed expectations.
Thus, we would buy Seven &amp; I Holdings leading up to earnings expecting a decent upside on rising guidance.


Seven & I Marches On in the US Despite Headwinds From Inflation

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)

OK Super: Winning in Inflation Era

OK Corporation runs Japan's most successful discount supermarket operation and is a benchmark to measure its listed competitors. It is likely to...

Michael Causton

Seven & I: Positives All Around But Upside Is Limited

As the US growth cool down, we remain neutral on Seven & I in the short term. We think investors would need to see the true colours of Speedway...

Oshadhi Kumarasiri

Seven & I (3382) | So What if Walmart Missed

We expect the core Convenience business in the US and Japan to perform strongly. This is the key driver of valuations. We expect Q1 results to...

Mark Chadwick

Seven & I Sale of Sogo Seibu Moves Closer

Seven & I looks set to dispose of Sogo Seibu, removing one loss-making unit (¥8.8 billion net loss last year). While activist investors will push...

Michael Causton

Seven & I Marches On in the US Despite Headwinds From Inflation

The impact of rising inflation on consumer demand is a major drawback for valuations these days, especially for companies in the consumer sphere....

Oshadhi Kumarasiri

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