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>Convenience stores remain Japan’s largest sector. 2020 was the first and, so far, only year in the format’s 50-year history when sales declined, but performance has since bounced back.</li>
<li>Still dominated by three of the largest retail chains in the country, it remains one of the most dynamic and forward thinking retailing and marketing sectors</li>
<li>The latest initiatives look set to deliver more growth in sales as well as potentially delivering a huge new revenue stream in the form of retail media.</li>
</ul>


Convenience stores remain Japan’s largest sector. 2020 was the first and, so far, only year in the format’s 50-year history when sales declined, but performance has since bounced back.
Still dominated by three of the largest retail chains in the country, it remains one of the most dynamic and forward thinking retailing and marketing sectors
The latest initiatives look set to deliver more growth in sales as well as potentially delivering a huge new revenue stream in the form of retail media.


Japan's Convenience Stores Still Growing, Still Innovating

<ul>
<li>Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.</li>
<li>The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.</li>
<li>This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.</li>
</ul>


Results for FY2022-23 provide a snapshot of winners and losers in Japan's retail sector.
The data shows a big improvement in performance for retailers with sales of ¥250 billion or more and the outlook is positive for most, particularly for profits.
This also means that market concentration is intensifying, particularly in sectors like drugstores but also now in supermarkets. We highlight the winners in each sector.


Equity Bottom-Up

<ul>
<li>Seven &amp; I has announced major restructuring of its struggling Ito-Yokado GMS chain – a company that big investors have long demanded be sold off entirely. </li>
<li>The latest round of cuts had to wait until the company’s founder finally passed away, although are likely not going to be the last.</li>
<li>Seven &amp; I has long had a coherent plan to rationalise - but was just waiting for the founder to pass – with a series of disposals now likely.</li>
</ul>


Seven &amp; I has announced major restructuring of its struggling Ito-Yokado GMS chain – a company that big investors have long demanded be sold off entirely. 
The latest round of cuts had to wait until the company’s founder finally passed away, although are likely not going to be the last.
Seven &amp; I has long had a coherent plan to rationalise - but was just waiting for the founder to pass – with a series of disposals now likely.


Seven & I: The Biggest Barrier to Change Has Gone

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The pre-conditional Scheme from its founders and CVC for <a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer (1337 HK)</a> at $2.82/share, is a 55.8% premium to the undisturbed price, but below the 2017 IPO price of $3.88.</li>
<li>
<a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>'s implied stub and the simple ratio (CKH/ <a href="https://www.smartkarma.com/entities/ck-infrastructure-holdings-l" target="_blank" data-smartkarma-citation="entities:163:1" rel="noopener">CK Infrastructure Holdings (1038 HK)</a>) are currently at an all-time low.</li>
<li>The local government is now getting practically involved in the resolution of the financial problems of <a href="https://www.smartkarma.com/entities/china-evergrande-group" target="_blank" data-smartkarma-citation="entities:479:1" rel="noopener">Evergrande (3333 HK)</a>and <a href="https://www.smartkarma.com/entities/china-evergrande-new-energy-vehicle-group-ltd" target="_blank" data-smartkarma-citation="entities:713:1" rel="noopener">Evergrande Auto (708 HK)</a>. </li>
</ul>


The pre-conditional Scheme from its founders and CVC for Razer (1337 HK) at $2.82/share, is a 55.8% premium to the undisturbed price, but below the 2017 IPO price of $3.88.

CK Hutchison Holdings (1 HK)'s implied stub and the simple ratio (CKH/ CK Infrastructure Holdings (1038 HK)) are currently at an all-time low.
The local government is now getting practically involved in the resolution of the financial problems of Evergrande (3333 HK)and Evergrande Auto (708 HK). 


Last Week in Event SPACE: Razer Inc, Evergrande Land/Auto, CK Hutchison, Grab SPAC

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

Japan

AEON CO., LTD. operates general merchandise stores, supermarkets, and convenience stores throughout Japan. The Company is also engaged in women's and casual clothing store business, development business of commercial property, and financing service through the subsidiaries.

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Aeon Co Ltd (8267 JP)

Japan's Convenience Stores Still Growing, Still Innovating

Japan's convenience store sector, dominated by 3 major chains, is bouncing back after their first decline in 50 years in 2020, with innovative...

Michael Causton

Japan's Best Performing Retailers

There were strong improvements in both sales and profits for leading retailers last year and the following insight looks at the main winners and...

Michael Causton

Seven & I: The Biggest Barrier to Change Has Gone

Activist investors complain about the lack of change at Seven & I but fealty to the founder was always stronger. That has now gone and a lot of...

Michael Causton

Last Week in Event SPACE: Razer Inc, Evergrande Land/Auto, CK Hutchison, Grab SPAC

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan's Convenience Stores Still Growing, Still Innovating

​Japan's convenience store sector, dominated by 3 major chains, is bouncing back after their first decline in 50 years in 2020, with innovative...

Michael Causton

Japan's Best Performing Retailers

There were strong improvements in both sales and profits for leading retailers last year and the following insight looks at the main winners and...

Michael Causton

Seven & I: The Biggest Barrier to Change Has Gone

Activist investors complain about the lack of change at Seven & I but fealty to the founder was always stronger. That has now gone and a lot of...

Michael Causton

Last Week in Event SPACE: Razer Inc, Evergrande Land/Auto, CK Hutchison, Grab SPAC

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

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's convenience store sector, dominated by 3 major chains, is bouncing back after their first decline in 50 years in 2020, with innovative...