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>Like all department stores, Iwataya in Fukuoka is keen to grow services for its wealthiest customers. </li>
<li>It already has special lounges for high spending customers and has now opened a new, invitation-only lounge for its top 300 clients, many of whom are under 40.</li>
<li>Capturing more share of the wealth market is the only real hope department stores have to grow.</li>
</ul>


Like all department stores, Iwataya in Fukuoka is keen to grow services for its wealthiest customers. 
It already has special lounges for high spending customers and has now opened a new, invitation-only lounge for its top 300 clients, many of whom are under 40.
Capturing more share of the wealth market is the only real hope department stores have to grow.


Iwataya Opens Lounge S - A New Space for the Truly Wealthy

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>Two of the biggest department store chains in Japan, <a href="https://www.smartkarma.com/entities/h2o-retailing-corp" target="_blank" data-smartkarma-citation="entities:17562:1" rel="noopener">H2 O Retailing (8242 JP)</a> &amp; <a href="https://www.smartkarma.com/entities/isetan-mitsukoshi-holdings-ltd" target="_blank" data-smartkarma-citation="entities:18871:1" rel="noopener">Isetan Mitsukoshi Holdings Ltd (3099 JP)</a> are set to disclose FQ3 earnings this week.</li>
<li>The ones with FQ3 ending in November, <a href="https://www.smartkarma.com/entities/j-front-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:8947:1" rel="noopener">J Front Retailing (3086 JP)</a> and <a href="https://www.smartkarma.com/entities/takashimaya-co-ltd" target="_blank" data-smartkarma-citation="entities:370:1" rel="noopener">Takashimaya (8233 JP)</a> surprised to the upside with 6% and 8% price gains on earnings.</li>
<li>Our analysis indicates that H2O Retailing &amp; Isetan Mitsukoshi could deliver stronger FQ3 results. Thus, we would look to trade Japanese Department Stores before earnings this week.</li>
</ul>


Two of the biggest department store chains in Japan, H2 O Retailing (8242 JP) &amp; Isetan Mitsukoshi Holdings Ltd (3099 JP) are set to disclose FQ3 earnings this week.
The ones with FQ3 ending in November, J Front Retailing (3086 JP) and Takashimaya (8233 JP) surprised to the upside with 6% and 8% price gains on earnings.
Our analysis indicates that H2O Retailing &amp; Isetan Mitsukoshi could deliver stronger FQ3 results. Thus, we would look to trade Japanese Department Stores before earnings this week.


Japanese Department Stores: An Opportunity to Trade FQ3 Earnings This Week

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lawson-inc" target="_blank" data-smartkarma-citation="entities:1040:1" rel="noopener">Lawson Inc (2651 JP)</a> has confirmed it will list its upscale supermarket subsidiary, Seijo Ishii early next year.</li>
<li>Seijo leads in premium supermarket retailing and is growing as fast as the wealth market does, with plenty of room left to expand.</li>
<li>Seijo Ishii is now building its own production and import capabilities to increase originality and could begin to challenge even some of their larger rivals.</li>
</ul>



Lawson Inc (2651 JP) has confirmed it will list its upscale supermarket subsidiary, Seijo Ishii early next year.
Seijo leads in premium supermarket retailing and is growing as fast as the wealth market does, with plenty of room left to expand.
Seijo Ishii is now building its own production and import capabilities to increase originality and could begin to challenge even some of their larger rivals.


<ul>
<li>Isetan-Mitsukoshi is dangerously dependent on a small number of wealthy customers for a lot of its revenue.</li>
<li>Wealthy VIP customers account for around half of sales at both Isetan Shinjuku and Mitsukoshi Nihonbashi department stores</li>
<li>But the wealth market is one of the few segments to continue to grow so should be a source of growth even while the rest of its market shrinks.</li>
</ul>


Isetan-Mitsukoshi is dangerously dependent on a small number of wealthy customers for a lot of its revenue.
Wealthy VIP customers account for around half of sales at both Isetan Shinjuku and Mitsukoshi Nihonbashi department stores
But the wealth market is one of the few segments to continue to grow so should be a source of growth even while the rest of its market shrinks.


50% of Sales at Isetan-Mitsukoshi Flagships from Top 5% of Customers

Japan Specialist

Mark Chadwick

<ul>
<li>J-Front Retailing, a Japanese department store operator, will announce full-year results on April 11.</li>
<li>We expect FY2/23 guidance to be more optimistic as Japan normalises post COVID. </li>
<li>Pent up demand for luxury goods to drive recovery of department stores. J-Front is still trading below book value.</li>
</ul>


J-Front Retailing, a Japanese department store operator, will announce full-year results on April 11.
We expect FY2/23 guidance to be more optimistic as Japan normalises post COVID. 
Pent up demand for luxury goods to drive recovery of department stores. J-Front is still trading below book value.


J-Front (3086) | Recent Datapoints Point to High-End Shoppers Loosening the Purse Strings

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)

Iwataya Opens Lounge S - A New Space for the Truly Wealthy

Department stores in Japan are investing heavily in lounges and services to better attract wealthy customers. With the HNWI market one of the few...

Michael Causton

Japanese Department Stores: An Opportunity to Trade FQ3 Earnings This Week

Japanese department stores, especially the ones reporting 3QFY23 this week are having a good time after many years. With costs falling back towards...

Oshadhi Kumarasiri

Lawson Confirms Seijo Ishii IPO

Lawson plans to list its upscale supermarket subsidiary Seijo Ishii. The latter is one of the best supermarket operators in the country and is...

Michael Causton

50% of Sales at Isetan-Mitsukoshi Flagships from Top 5% of Customers

Isetan-Mitsukoshi is focusing on VIPs which already account for 50% of sales at its flagships but this is not enough. Drags on sales and profits...

Michael Causton

J-Front (3086) | Recent Datapoints Point to High-End Shoppers Loosening the Purse Strings

J-Front Retailing is a beneficiary of COVID normalisation and eventual resumption of inbound tourism. The restructuring and cost cuts bode well for...

Mark Chadwick

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