Highly Differentiated Ideas and Insights, Made in Japan

Made in Japan

Highly Differentiated Ideas and Insights

The mission of MIJ is to become your field guide to Business and Investing in Japan. My goal is to make businesses in Japan more accessible to everyone by breaking down cultural barriers and provide differentiated ideas and insights.

Equity Bottom-Up

<ul>
<li>Welcome to Part 2 of my logistics series. I’ll briefly talk about a nanocap that could benefit from the shake-up in the logistics industry.</li>
<li>This particularly interested me because it covers 2 themes I like which are: the 2024 Problem but also the 2025 Digital Cliff (in other words, DX).</li>
<li>The company is Logizard $4391.JP, which is not a Pokemon (You’re thinking about Charizard) but probably the only listed pure-play Warehouse Management System (WMS) SaaS company in Japan.</li>
</ul>


Welcome to Part 2 of my logistics series. I’ll briefly talk about a nanocap that could benefit from the shake-up in the logistics industry.
This particularly interested me because it covers 2 themes I like which are: the 2024 Problem but also the 2025 Digital Cliff (in other words, DX).
The company is Logizard $4391.JP, which is not a Pokemon (You’re thinking about Charizard) but probably the only listed pure-play Warehouse Management System (WMS) SaaS company in Japan.


Logistics in Crisis ? The 2024 Problem: Part 2

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>Retailing is booming in Japan, backed by consumers getting out and about, buying enthusiastically and enjoying Japan’s shop-focused entertainment centres once again. </li>
<li>Tourists are back in record numbers, with 3 million a month entering Japan since March and well over 30 million expected in 2024 overall.</li>
<li>Inflation remains a concern, but we’re two years into this round of price increases and consumers are becoming resigned to higher prices. FY2024 will be another excellent year.</li>
</ul>


Retailing is booming in Japan, backed by consumers getting out and about, buying enthusiastically and enjoying Japan’s shop-focused entertainment centres once again. 
Tourists are back in record numbers, with 3 million a month entering Japan since March and well over 30 million expected in 2024 overall.
Inflation remains a concern, but we’re two years into this round of price increases and consumers are becoming resigned to higher prices. FY2024 will be another excellent year.


Japan's Retail Sector Grows Faster than 1990

<ul>
<li>Last week in Japan's retail sector: continued weakness in shopping mall development due to both falling demand from tenants and competition from online.</li>
<li>Don Quijote operator, Pan Pacific posted strong results, reflecting high demand from both locals looking for value and tourists browsing for fun.</li>
<li>The retail sector had a record year in FY23, but a big constraint is the labour shortage but, with many fit older Japanese, some employees are now over 80. </li>
</ul>


Last week in Japan's retail sector: continued weakness in shopping mall development due to both falling demand from tenants and competition from online.
Don Quijote operator, Pan Pacific posted strong results, reflecting high demand from both locals looking for value and tourists browsing for fun.
The retail sector had a record year in FY23, but a big constraint is the labour shortage but, with many fit older Japanese, some employees are now over 80. 


Japan's Retail Week: New Malls Slow, Lawson/Muji Get Closer, Donki Booms and Jobs for the over 80s

<ul>
<li>M&amp;A is now a core strategy for expansion among lifestyle retailers as depopulation shrinks the overall market. </li>
<li>Adastria is leading this trend, acquiring several businesses in the past year, and will now add variety stores from Welcome, the operator of Dean &amp; Deluca, and a restaurant chain.</li>
<li>It is also developing new product lines in categories as diverse as sexual wellbeing and home decor, all part of wider plans to become Japan’s “biggest general lifestyle retailer”.</li>
</ul>


M&amp;A is now a core strategy for expansion among lifestyle retailers as depopulation shrinks the overall market. 
Adastria is leading this trend, acquiring several businesses in the past year, and will now add variety stores from Welcome, the operator of Dean &amp; Deluca, and a restaurant chain.
It is also developing new product lines in categories as diverse as sexual wellbeing and home decor, all part of wider plans to become Japan’s “biggest general lifestyle retailer”.


Adastria Bets on Diversification for Future Growth

<ul>
<li>The clothing sections of GMS chains and supermarkets have declined so far in relevance that most assume the format will disappear entirely. </li>
<li>But new efforts by Aeon, as well as collaborations by the likes of Ito-Yokado, could lead to a new lease of life and higher margins.</li>
<li>This may impact on retailers like Shimamura but the more likely result will be new opportunities to takeover supermarket apparel floors as Adastria is doing already.</li>
</ul>


The clothing sections of GMS chains and supermarkets have declined so far in relevance that most assume the format will disappear entirely. 
But new efforts by Aeon, as well as collaborations by the likes of Ito-Yokado, could lead to a new lease of life and higher margins.
This may impact on retailers like Shimamura but the more likely result will be new opportunities to takeover supermarket apparel floors as Adastria is doing already.


Japan

Adastria Co., Ltd. operates a chain of clothing stores in Japan. The Company also operates stores in China, Taiwan, Hong Kong and Korea.

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Adastria Co Ltd (2685 JP)

Logistics in Crisis ? The 2024 Problem: Part 2

Welcome to Part 2 of my logistics series. I’ll briefly talk about a nanocap that could benefit from the shake-up in the logistics industry. This...

Made in Japan

Japan's Retail Sector Grows Faster than 1990

Retailing in Japan is thriving as consumers shop enthusiastically, despite concerns about inflation, and tourists return in record numbers. The...

Michael Causton

Japan's Retail Week: New Malls Slow, Lawson/Muji Get Closer, Donki Booms and Jobs for the over 80s

Japan's retail sector in the last week: Shopping mall development slows, Don Quijote operator Pan Pacific sees strong demand from locals and...

Michael Causton

Adastria Bets on Diversification for Future Growth

Lifestyle retailers turn to M&A for growth amid depopulation, with Adastria leading the trend by acquiring new businesses and expanding product...

Michael Causton

A Supermarket Clothing Revival in Japan?

GMS chains and supermarkets are reviving their clothing sections, potentially creating new opportunities for higher margins at GMS operations.

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Logistics in Crisis ? The 2024 Problem: Part 2

Welcome to Part 2 of my logistics series. I’ll briefly talk about a nanocap that could benefit from the shake-up in the logistics industry. This...

Made in Japan

Japan's Retail Sector Grows Faster than 1990

​Retailing in Japan is thriving as consumers shop enthusiastically, despite concerns about inflation, and tourists return in record numbers. The...

Michael Causton

Japan's Retail Week: New Malls Slow, Lawson/Muji Get Closer, Donki Booms and Jobs for the over 80s

Japan's retail sector in the last week: Shopping mall development slows, Don Quijote operator Pan Pacific sees strong demand from locals and...

Michael Causton

Adastria Bets on Diversification for Future Growth

​Lifestyle retailers turn to M&A for growth amid depopulation, with Adastria leading the trend by acquiring new businesses and expanding product...

Michael Causton

A Supermarket Clothing Revival in Japan?

​GMS chains and supermarkets are reviving their clothing sections, potentially creating new opportunities for higher margins at GMS operations.

Michael Causton

Retailing in Japan is thriving as consumers shop enthusiastically, despite concerns about inflation, and tourists return in record numbers. The...

Lifestyle retailers turn to M&A for growth amid depopulation, with Adastria leading the trend by acquiring new businesses and expanding product...

GMS chains and supermarkets are reviving their clothing sections, potentially creating new opportunities for higher margins at GMS operations.