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

Isetan Mitsukoshi Holdings Ltd / Equity Bottom-Up

<ul>
<li>Department stores had a terrific year in FY2024, especially some of the more iconic stores like Isetan Shinjuku and Hankyu Umeda. </li>
<li>Declining custom from tourists is beginning to be a worry but the emphasis on capturing data on core local customers has, and will, pay big dividends for the best stores.</li>
<li>The rest of the sector however, will continue to contract but the polarisation will help highlight the luxury positioning of the best stores.</li>
</ul>


Department stores had a terrific year in FY2024, especially some of the more iconic stores like Isetan Shinjuku and Hankyu Umeda. 
Declining custom from tourists is beginning to be a worry but the emphasis on capturing data on core local customers has, and will, pay big dividends for the best stores.
The rest of the sector however, will continue to contract but the polarisation will help highlight the luxury positioning of the best stores.


Isetan Shinjuku Takes 24% of Tokyo Market but Worries for Future

<ul>
<li>Isetan-Mitsukoshi has gone from being the most cautious forecaster among the big department store retailers to the most optimistic.</li>
<li>This is largely on the back of previously unimaginable sales records at its main stores, especially Isetan Shinjuku.</li>
<li>All of which is bringing in piles of profit, with projections of exceeding its previous average profit by four times.</li>
</ul>


Isetan-Mitsukoshi has gone from being the most cautious forecaster among the big department store retailers to the most optimistic.
This is largely on the back of previously unimaginable sales records at its main stores, especially Isetan Shinjuku.
All of which is bringing in piles of profit, with projections of exceeding its previous average profit by four times.


Thematic (Sector/Industry)

<ul>
<li>FMCG retailers remained dominant and market concentration increased, with top firms expanding through consolidation. </li>
<li>Discounters, drugstores and e-commerce outperformed the market overall, while general merchandise stores and apparel/lifestyle declined.</li>
<li>Profitability varied significantly, but discounters stood out as consumers flocked to their stores to escape inflation where they could.</li>
</ul>


FMCG retailers remained dominant and market concentration increased, with top firms expanding through consolidation. 
Discounters, drugstores and e-commerce outperformed the market overall, while general merchandise stores and apparel/lifestyle declined.
Profitability varied significantly, but discounters stood out as consumers flocked to their stores to escape inflation where they could.


Japanese Big Retailers: Winners and Losers

<ul>
<li>Consumer distribution has been transformed since 2020 through accelerated concentration of market share. While some has come about through organic growth, the real drivers have been M&amp;A and MBOs. </li>
<li>The result is a realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, while others, notably Seven &amp; I, shrink.</li>
<li>Here we identify the retail leaders in driving consolidation going forward, and the intensifying pressure on both smaller retailers and the wholesalers that supply them.</li>
</ul>


Consumer distribution has been transformed since 2020 through accelerated concentration of market share. While some has come about through organic growth, the real drivers have been M&amp;A and MBOs. 
The result is a realignment of the retail leader board as companies like PPI, Welcia and Trial buy their way to the top, while others, notably Seven &amp; I, shrink.
Here we identify the retail leaders in driving consolidation going forward, and the intensifying pressure on both smaller retailers and the wholesalers that supply them.


[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

<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.


Japan

Isetan Mitsukoshi Holdings Ltd. is a holding company established through a merger of Mitsukoshi and Isetan. The group operates department stores nationwide, selling clothing, foods, household goods, cosmetics and general merchandise.

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Isetan Mitsukoshi Holdings Ltd (3099 JP)

Isetan Shinjuku Takes 24% of Tokyo Market but Worries for Future

Isetan-Mitsukoshi had a strong year in FY2024 thanks to tourists spending in its main stores but now that the latter have curtailed spending, the...

Michael Causton

Isetan Shinjuku to Hit ¥424 Billion

Isetan-Mitsukoshi, once cautious, now optimistic as record sales at main stores drive profits to exceed previous averages by four times.

Michael Causton

Japanese Big Retailers: Winners and Losers

An in-depth review of Japan retailers with sales of ¥250+ in 2025: FMCG retailers dominate with market concentration increasing, discounters...

Michael Causton

[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Isetan Shinjuku Takes 24% of Tokyo Market but Worries for Future

Isetan-Mitsukoshi had a strong year in FY2024 thanks to tourists spending in its main stores but now that the latter have curtailed spending, the...

Michael Causton

Isetan Shinjuku to Hit ¥424 Billion

​Isetan-Mitsukoshi, once cautious, now optimistic as record sales at main stores drive profits to exceed previous averages by four times.

Michael Causton

Japanese Big Retailers: Winners and Losers

An in-depth review of Japan retailers with sales of ¥250+ in 2025: ​FMCG retailers dominate with market concentration increasing, discounters...

Michael Causton

[Japan M&A] Who Owns Who: The Growing Concentration of Power in Japanese Consumer Markets

​Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...

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

Isetan-Mitsukoshi, once cautious, now optimistic as record sales at main stores drive profits to exceed previous averages by four times.

An in-depth review of Japan retailers with sales of ¥250+ in 2025: FMCG retailers dominate with market concentration increasing, discounters...

Consumer distribution has shifted post-2020, with market concentration driven by M&A and MBOs. We identify the leaders of this consolidation,...