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. 

Equity Bottom-Up

<ul>
<li>The footwear retail sector is a one horse race, with that horse being ABC Mart.</li>
<li>It continues to grow at a respectable rate while increasingly diminutive rivals contract.</li>
<li>ABC Mart is expanding further into the apparel category too, providing more room for future growth.</li>
</ul>


The footwear retail sector is a one horse race, with that horse being ABC Mart.
It continues to grow at a respectable rate while increasingly diminutive rivals contract.
ABC Mart is expanding further into the apparel category too, providing more room for future growth.


ABC Mart Extends Lead in Japan's Footwear Market as Competitors Contract

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Bowing before bureaucratic, governmental, societal, and perhaps finally shareholder pressure, <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> Friday announced it is rolling up two big subsidiaries. </li>
<li>Aeon Mall will be merged with Aeon in a share exchange and <a href="https://www.smartkarma.com/entities/aeon-delight-co-ltd" target="_blank" data-smartkarma-citation="entities:16763:1" rel="noopener">Aeon Delight (9787 JP)</a> will be taken over via slightly long-dated Tender Offer which starts Monday.</li>
<li>This is probably the wrong price, but it isn't <em>egregiously</em> wrong I expect. And it would be difficult to block. I expect it gets done easily.</li>
</ul>


Bowing before bureaucratic, governmental, societal, and perhaps finally shareholder pressure, Aeon Co Ltd (8267 JP) Friday announced it is rolling up two big subsidiaries. 
Aeon Mall will be merged with Aeon in a share exchange and Aeon Delight (9787 JP) will be taken over via slightly long-dated Tender Offer which starts Monday.
This is probably the wrong price, but it isn't egregiously wrong I expect. And it would be difficult to block. I expect it gets done easily.


Aeon Tender Offer for Aeon Delight (9787) At ¥5,400/Share

<ul>
<li>The disparity between the leading footwear retailers continues to widen.</li>
<li>ABC Mart is pulling so far ahead that it has the market almost to itself. </li>
<li>Chiyoda may have finally turned the corner but G-Foot may need further financial support from Aeon.</li>
</ul>


The disparity between the leading footwear retailers continues to widen.
ABC Mart is pulling so far ahead that it has the market almost to itself. 
Chiyoda may have finally turned the corner but G-Foot may need further financial support from Aeon.


ABC Mart Forges Further Ahead of Competitors

Thematic (Sector/Industry)

<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.


<ul>
<li>As outlined in previous reports, Aeon has been working hard to streamline its vast retail empire but also rethinking the fundamentals of retailing for each major format it operates.</li>
<li>The results are now coming through with a big increase in operating profits in 1H2023, up 23% on last year.</li>
<li>There is real momentum now, and the new online supermarket business is central to its ambitions to create the first true national FMCG business.</li>
</ul>


As outlined in previous reports, Aeon has been working hard to streamline its vast retail empire but also rethinking the fundamentals of retailing for each major format it operates.
The results are now coming through with a big increase in operating profits in 1H2023, up 23% on last year.
There is real momentum now, and the new online supermarket business is central to its ambitions to create the first true national FMCG business.


Aeon Keeps Working After High Profit Growth

Japan

GFOOT CO., LTD. operates a shoe store chain in mainly in Aichi Prefecture, and Tokyo, Kanagawa, and Saitama Prefectures.  The Company sells shoes for men, women and children, sports shoes, and rain shoes.

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Gfoot Co Ltd (2686 JP)

ABC Mart Extends Lead in Japan's Footwear Market as Competitors Contract

ABC Mart dominates the footwear retail sector, expanding as rivals shrink, and now venturing into apparel for continued growth as well as...

Michael Causton

ABC Mart Forges Further Ahead of Competitors

ABC Mart is dominating the footwear retail market, leaving competitors like Chiyoda and G-Foot struggling to keep up. ABC also has a strong growth...

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

Aeon Keeps Working After High Profit Growth

Aeon's efforts to revamp its retail empire and rethink strategies are paying off, with a 23% rise in OP in 1H2023. A new online store is key to...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ABC Mart Extends Lead in Japan's Footwear Market as Competitors Contract

​ABC Mart dominates the footwear retail sector, expanding as rivals shrink, and now venturing into apparel for continued growth as well as...

Michael Causton

Aeon Tender Offer for Aeon Delight (9787) At ¥5,400/Share

Aeon has announced a Tender Offer for facilities maintenance subsidiary Aeon Delight. It's an all-time high, but the TOB Premium on Aeon Delight is...

Travis Lundy

ABC Mart Forges Further Ahead of Competitors

​ABC Mart is dominating the footwear retail market, leaving competitors like Chiyoda and G-Foot struggling to keep up. ABC also has a strong growth...

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

Aeon Keeps Working After High Profit Growth

​Aeon's efforts to revamp its retail empire and rethink strategies are paying off, with a 23% rise in OP in 1H2023. A new online store is key to...

Michael Causton

ABC Mart dominates the footwear retail sector, expanding as rivals shrink, and now venturing into apparel for continued growth as well as...

ABC Mart is dominating the footwear retail market, leaving competitors like Chiyoda and G-Foot struggling to keep up. ABC also has a strong growth...

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

Aeon's efforts to revamp its retail empire and rethink strategies are paying off, with a 23% rise in OP in 1H2023. A new online store is key to...