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.

Event-Driven

<ul>
<li>Value Act’s investor activism campaign has already made more progress than any other investor activism campaign in the recent past.</li>
<li>There are many similarities between ValueAct's transformation plan and <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>'s letter to its shareholders, one might think the letter could be minutes from a meeting.</li>
<li>Therefore, we see no reason to get frustrated over the lack of tangible developments, as the management is fully on board and things are moving on nicely behind the scenes.</li>
</ul>


Value Act’s investor activism campaign has already made more progress than any other investor activism campaign in the recent past.
There are many similarities between ValueAct's transformation plan and Seven &amp; I Holdings (3382 JP)'s letter to its shareholders, one might think the letter could be minutes from a meeting.
Therefore, we see no reason to get frustrated over the lack of tangible developments, as the management is fully on board and things are moving on nicely behind the scenes.


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 Japanese retail in the last 18 months covering all the main formats and categories, providing a quick way to see an overview of all the key trends and winners and losers in Japanese retailing now and going forward.FY2020 was an anomaly and one that businesses everywhere will want to forget and never repeat. There was more than enough pain among Japan’s top retailers last year, but equally some formats did surprisingly well given the circumstances.For most, work-from-home was the single most important factor in determining a chain’s fortunes. City-centre stores and shopping centres offering mostly discretionary shopping have been hit hard, as have convenience stores.But those chains selling essentials, healthcare, electronics and, most importantly, food, all saw their fortunes improve. The pandemic has also revealed the strong, dynamic players and exposed the weaker ones. Oh, and everyone needs to be online.

The following is an in-depth review of Japanese retail in the last 18 months covering all the main formats and categories, providing a quick way to see an overview of all the key trends and winners and losers in Japanese retailing now and going forward.FY2020 was an anomaly and one that businesses everywhere will want to forget and never repeat. There was more than enough pain among Japan’s top retailers last year, but equally some formats did surprisingly well given the circumstances.For most, work-from-home was the single most important factor in determining a chain’s fortunes. City-centre stores and shopping centres offering mostly discretionary shopping have been hit hard, as have convenience stores.But those chains selling essentials, healthcare, electronics and, most importantly, food, all saw their fortunes improve. The pandemic has also revealed the strong, dynamic players and exposed the weaker ones. Oh, and everyone needs to be online.

The Polarising Pandemic in Japanese Retail

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

• LARGE CAP RESULTS - 14th APRIL •<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/200/635/original/image_32488738921618434736177.png?1618434737" class="editor-image img-responsive" data-smartkarma-image-id="200635"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div>RESULTS - The percentage of positive Results Scores continues to fall, with only 39% of the 116 results reported on Wednesday. There were only three positives among large caps, including <a href="https://www.smartkarma.com/entities/ryohin-keikaku-co-ltd" target="_blank" data-smartkarma-citation="entities:2765:1" rel="noopener">Ryohin Keikaku (7453 JP)</a>, which has changed its year-end limiting comparability. There was no revision to the company's now six-month-old forecasts. Shoe retailer <a href="https://www.smartkarma.com/entities/abc-mart-inc" target="_blank" data-smartkarma-citation="entities:3213:1" rel="noopener">ABC Mart (2670 JP)</a> fared less well but is optimistic about FY22.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/200/644/original/image_16911018231618435000838.png?1618435002" class="editor-image img-responsive" data-smartkarma-image-id="200644"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/200/646/original/image_24286058841618435028922.png?1618435030" class="editor-image img-responsive" data-smartkarma-image-id="200646"></figure>• LARGE CAP FORECASTS/REVISIONS - 14th APRIL •<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/200/649/original/image_3948594651618435133716.png?1618435135" class="editor-image img-responsive" data-smartkarma-image-id="200649"></figure>REVISIONS/FORECASTS - Bullishness abounds for FY22, particularly amongst the many Restaurant Sector companies, of which coffee house <a href="https://www.smartkarma.com/entities/doutor-nichires-holdings-co" target="_blank" data-smartkarma-citation="entities:3096:1" rel="noopener">Doutor Nichires (3087 JP) </a>would be our value pick. Erstwhile E-Commerce darling <a href="https://www.smartkarma.com/entities/kitanotatsujin-corp" target="_blank" data-smartkarma-citation="entities:6126:1" rel="noopener">Kitanotatsujin (2930 JP)</a> was the only negatively-scoring large-cap, foreseeing yet more margin erosion. The shares remain overvalued at 36 EV/TTM OP.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/200/652/original/image_67668075561618435352425.png?1618435353" class="editor-image img-responsive" data-smartkarma-image-id="200652"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/200/655/original/image_87740698871618435386254.png?1618435387" class="editor-image img-responsive" data-smartkarma-image-id="200655"></figure>

• LARGE CAP RESULTS - 14th APRIL •Source for all charts &amp; tables: Japan AnalyticsRESULTS - The percentage of positive Results Scores continues to fall, with only 39% of the 116 results reported on Wednesday. There were only three positives among large caps, including Ryohin Keikaku (7453 JP), which has changed its year-end limiting comparability. There was no revision to the company's now six-month-old forecasts. Shoe retailer ABC Mart (2670 JP) fared less well but is optimistic about FY22.• LARGE CAP FORECASTS/REVISIONS - 14th APRIL •REVISIONS/FORECASTS - Bullishness abounds for FY22, particularly amongst the many Restaurant Sector companies, of which coffee house Doutor Nichires (3087 JP) would be our value pick. Erstwhile E-Commerce darling Kitanotatsujin (2930 JP) was the only negatively-scoring large-cap, foreseeing yet more margin erosion. The shares remain overvalued at 36 EV/TTM OP.

🇯🇵 JAPAN • Results & Revisions 04/​​​​​​​14 - Finding Value in ABC-MART & Doutor Nichires

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

The Japanese sports retail market has traditionally been dominated by four big retailers, <a href="https://www.smartkarma.com/entities/alpen-co-ltd" target="_blank" data-smartkarma-citation="entities:17762:1" rel="noopener">Alpen Co Ltd (3028 JP)</a>, <a href="https://www.smartkarma.com/entities/xebio-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:13955:1" rel="noopener">Xebio Holdings (8281 JP)</a>, Mega Sports (owned by <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP))</a> and <a href="https://www.smartkarma.com/entities/himaraya-co-ltd" target="_blank" data-smartkarma-citation="entities:5307:1" rel="noopener">Himaraya Co Ltd (7514 JP)</a>. With <a href="https://www.smartkarma.com/entities/mitsubishi-corp" target="_blank" data-smartkarma-citation="entities:20668:1" rel="noopener">Mitsubishi Corp (8058 JP)'s</a> financial and supply chain support, Himaraya overtook Mega Sports a few years ago but Himaraya’s sales have since contracted and Mitsubishi gradually reduced its stake while still retaining its core supply role.Mitsubishi will now divest all shares and end its supply relationship too, leaving Himaraya open to takeover.Given that sports/outdoor is one of the few sure growth markets, Himaraya won’t lack for potential suitors.This is a time of transition for the big multi-brand sports retailers. The number of stores increased up to 2018 but last year the total number of stores began to contract for the first time since 1990 with new competitors emerging, including <a href="https://www.smartkarma.com/entities/workman-co-ltd" target="_blank" data-smartkarma-citation="entities:8467:1" rel="noopener">Workman Co Ltd (7564 JP)</a> and Decathlon.

The Japanese sports retail market has traditionally been dominated by four big retailers, Alpen Co Ltd (3028 JP), Xebio Holdings (8281 JP), Mega Sports (owned by Aeon Co Ltd (8267 JP)) and Himaraya Co Ltd (7514 JP). With Mitsubishi Corp (8058 JP)'s financial and supply chain support, Himaraya overtook Mega Sports a few years ago but Himaraya’s sales have since contracted and Mitsubishi gradually reduced its stake while still retaining its core supply role.Mitsubishi will now divest all shares and end its supply relationship too, leaving Himaraya open to takeover.Given that sports/outdoor is one of the few sure growth markets, Himaraya won’t lack for potential suitors.This is a time of transition for the big multi-brand sports retailers. The number of stores increased up to 2018 but last year the total number of stores began to contract for the first time since 1990 with new competitors emerging, including Workman Co Ltd (7564 JP) and Decathlon.

Japan Sports Retail in Flux as Mitsubishi Ditches Himaraya

Japan

ABC-MART, INC. plans, develops, wholesales, and retails shoes.  The Company also plans and develops brand name shoes such as VANS and G.T. HAWKINS.  ABC-Mart imports and wholesales shoes, apparel, bags, and sundries as well.

Price Gauge
52-week Range	0.00 - 0.00
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ABC Mart (2670 JP)

Seven & I Investor Activism Update

We see no reason to get frustrated over the lack of tangible developments with regard to ValueAct’s investor activism campaign as it appears that...

Oshadhi Kumarasiri

The Polarising Pandemic in Japanese Retail

A complete review of the Japanese retail sector in the last 18 months, format by format, category by category, providing key trends and winners &...

Michael Causton

🇯🇵 JAPAN • Results & Revisions 04/14 - Finding Value in ABC-MART & Doutor Nichires

RESULTS - The percentage of positive Results Scores continues to fall, with only 39% of the 116 results reported on Wednesday.

Campbell Gunn

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

Japan Sports Retail in Flux as Mitsubishi Ditches Himaraya

Mitsubishi will divest its long-standing holding in sports retailer, Himaraya. With the sports retail market in flux, Himaraya is a likely target...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Seven & I Investor Activism Update

We see no reason to get frustrated over the lack of tangible developments with regard to ValueAct’s investor activism campaign as it appears that...

Oshadhi Kumarasiri

The Polarising Pandemic in Japanese Retail

A complete review of the Japanese retail sector in the last 18 months, format by format, category by category, providing key trends and winners &...

Michael Causton

🇯🇵 JAPAN • Results & Revisions 04/​​​​​​​14 - Finding Value in ABC-MART & Doutor Nichires

RESULTS - The percentage of positive Results Scores continues to fall, with only 39% of the 116 results reported on Wednesday.

Campbell Gunn

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

Japan Sports Retail in Flux as Mitsubishi Ditches Himaraya

Mitsubishi will divest its long-standing holding in sports retailer, Himaraya. With the sports retail market in flux, Himaraya is a likely target...

Michael Causton

🇯🇵 JAPAN • Results & Revisions 04/14 - Finding Value in ABC-MART & Doutor Nichires