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>Inbound tourism only got going again from October but the pent up demand to visit Japan has meant a surge in visitors. </li>
<li>Since many tourists also have stuffed wallets due to curtailed spending during the pandemic and the Yen is at very low levels, there is much higher spending. </li>
<li>Key beneficiaries are listed below among department stores, premium fashion stores and drugstores.</li>
</ul>


Inbound tourism only got going again from October but the pent up demand to visit Japan has meant a surge in visitors. 
Since many tourists also have stuffed wallets due to curtailed spending during the pandemic and the Yen is at very low levels, there is much higher spending. 
Key beneficiaries are listed below among department stores, premium fashion stores and drugstores.


Inbound Tourism up 50%, Spending Almost at 2019 Levels

<ul>
<li>More evidence is emerging that department stores will rely increasingly on wealthy VIP account holders to maintain sales in the future. </li>
<li>The wealthy are also getting younger and department stores are adapting, using digital services which are also cheaper to run.</li>
<li>With luxury prices up and the inbound trade also coming back strongly, the outlook for the better stores is positive – even though the sector overall will continue to contract.</li>
</ul>


More evidence is emerging that department stores will rely increasingly on wealthy VIP account holders to maintain sales in the future. 
The wealthy are also getting younger and department stores are adapting, using digital services which are also cheaper to run.
With luxury prices up and the inbound trade also coming back strongly, the outlook for the better stores is positive – even though the sector overall will continue to contract.


Luxury Boost for Japan's Department Stores

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.</li>
<li>The base date for the August annual review is 30th June 2026. The index review results are expected to be announced on 7th August 2026.</li>
<li>In this insight, we have presented our final expectations for the August 2026 review.</li>
</ul>


JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted capped index composed of 400 constituents.
The base date for the August annual review is 30th June 2026. The index review results are expected to be announced on 7th August 2026.
In this insight, we have presented our final expectations for the August 2026 review.


Quiddity JPX-Nikkei 400 Rebal 2026: End-June 2026 Ranks (FINAL EXPECTATIONS)

<ul>
<li>The long awaited lifting of restrictions on inbound tourists in October seems to have given new confidence to domestic tourists too.</li>
<li>Major airlines, hotels and railways are all reporting a significant uplift in bookings with several forecasting that figures will exceed 2019 by March next year.</li>
<li>Retailers have benefitted too, notably department stores and lifestyle retailers. Now all Japan needs is for Chinese tourists to be allowed out.</li>
</ul>


The long awaited lifting of restrictions on inbound tourists in October seems to have given new confidence to domestic tourists too.
Major airlines, hotels and railways are all reporting a significant uplift in bookings with several forecasting that figures will exceed 2019 by March next year.
Retailers have benefitted too, notably department stores and lifestyle retailers. Now all Japan needs is for Chinese tourists to be allowed out.


Japan's Retailers, Hotels, Carriers Rejoice: Domestic Tourism Surges and Inbound Traffic Rises

<ul>
<li>Department stores managed a partial rebound in 2021-22 but remain around 19% behind pre-Covid levels overall. As a result, profits remain elusive and the shake up in the industry continues. </li>
<li>On the plus side, luxury sales continue to surge and management is now more engaged than for years.</li>
<li>Although we remain negative on the sector overall, some companies will bounce back strongly as detailed in this in-depth review of the sector.</li>
</ul>


Department stores managed a partial rebound in 2021-22 but remain around 19% behind pre-Covid levels overall. As a result, profits remain elusive and the shake up in the industry continues. 
On the plus side, luxury sales continue to surge and management is now more engaged than for years.
Although we remain negative on the sector overall, some companies will bounce back strongly as detailed in this in-depth review of the sector.


Japan Department Stores: Sales Recovery but the Real Opportunity Is in Margin Growth

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)

Inbound Tourism up 50%, Spending Almost at 2019 Levels

Of course inbound tourism will rebound in Japan in 2023 but spending per visitor may well exceed 2019 levels due to the weak Yen and full wallets....

Michael Causton

Luxury Boost for Japan's Department Stores

Japan's department store decline is overshadowing some resurgence in sales and, above all, profit among the better managed firms. Strong brands and...

Michael Causton

Quiddity JPX-Nikkei 400 Rebal 2026: End-June 2026 Ranks (FINAL EXPECTATIONS)

There will be 45 ADDs and 39 DELs for the JPX-Nikkei 400 index in August 2026. We correctly predicted 75 of the 84 confirmed index changes (89%...

Janaghan Jeyakumar, CFA

Japan's Retailers, Hotels, Carriers Rejoice: Domestic Tourism Surges and Inbound Traffic Rises

Tourism is back in Japan, both domestic and inbound. We outline some of the key beneficiaries and expectations for a return to 2019 levels by next...

Michael Causton

Japan Department Stores: Sales Recovery but the Real Opportunity Is in Margin Growth

The Japanese department store sector suffered terribly during the pandemic and is in long-term decline but key companies are rebounding strongly...

Michael Causton

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52-week Range

Market Cap (USDm)

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