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

Genky DrugStores Co Ltd / Equity Bottom-Up

<ul>
<li>Genky Drugstores is one of three hybrid food &amp; drug chains, all of which target the discount end of the market. </li>
<li>Unlike rivals, Genky’s blends in-house control of both store and product development, and logistics.</li>
<li>This level of control and discipline is making Genky a growing threat to competitors in central Japan.</li>
</ul>


Genky Drugstores is one of three hybrid food &amp; drug chains, all of which target the discount end of the market. 
Unlike rivals, Genky’s blends in-house control of both store and product development, and logistics.
This level of control and discipline is making Genky a growing threat to competitors in central Japan.


Genky Drugstores (9267 JP) Aims for 10% Growth

Event-Driven

<ul>
<li>Aeon will almost definitely increase its stake in Tsuruha Holdings, which on its own will catalyse drugstore competitors to consider their mergeable options.</li>
<li>Tsuruha MAY merge with Welcia under Aeon and just talk of this will catalyse drugstore competitors even more.</li>
<li>But the ongoing fusion of drugstore retailing and FMCG formats like supermarkets and convenience stores, will also spur the entire FMCG sector to respond to Aeon's massive potential dominance.</li>
</ul>


Aeon will almost definitely increase its stake in Tsuruha Holdings, which on its own will catalyse drugstore competitors to consider their mergeable options.
Tsuruha MAY merge with Welcia under Aeon and just talk of this will catalyse drugstore competitors even more.
But the ongoing fusion of drugstore retailing and FMCG formats like supermarkets and convenience stores, will also spur the entire FMCG sector to respond to Aeon's massive potential dominance.


Aeon (Maybe) Gets Tsuruha, Could Trigger Wave of Mergers in the Sector (And Beyond)

<ul>
<li>The possible merger between Welcia and Tsuruha under Aeon has been talked about for years despite concerns from both drugstores, but may now happen.</li>
<li>But calling these retailers drugstores is increasingly a misnomer: FMCG-drugstores is better because they and many others in the sector, increasingly compete with FMCG retailers like supermarkets and even CVS.</li>
<li>This evolution is rapid so the merits of a deal make more sense when we view it from a sector five years in the future than how it is today.</li>
</ul>


The possible merger between Welcia and Tsuruha under Aeon has been talked about for years despite concerns from both drugstores, but may now happen.
But calling these retailers drugstores is increasingly a misnomer: FMCG-drugstores is better because they and many others in the sector, increasingly compete with FMCG retailers like supermarkets and even CVS.
This evolution is rapid so the merits of a deal make more sense when we view it from a sector five years in the future than how it is today.


Aeon, Welcia and Tsuruha: Creating an FMCG Behemoth

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>There was no supplementary explanation from financial perspectives regarding the details of plans to open new stores in each region, plans for supermarket M&amp;As, or the amount of these investments.</li>
<li>Aoki has yet to come up with effective pricing policies and sales promotion to boost SSSG. Its higher prices are leading to a decline in the frequency of store visits.</li>
<li>Its goal of "providing customers with one-stop shopping" is based on the assumption that consumers will not "buy separately" at discount drugs and discount supermarkets.</li>
</ul>


There was no supplementary explanation from financial perspectives regarding the details of plans to open new stores in each region, plans for supermarket M&amp;As, or the amount of these investments.
Aoki has yet to come up with effective pricing policies and sales promotion to boost SSSG. Its higher prices are leading to a decline in the frequency of store visits.
Its goal of "providing customers with one-stop shopping" is based on the assumption that consumers will not "buy separately" at discount drugs and discount supermarkets.


Japan's Governance: Kusuri No Aoki Holdings (3549): 2QFY5/2022 Financial Results Briefing

<ul>
<li>The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.</li>
<li>The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.</li>
<li>As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.</li>
</ul>


The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.
The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.
As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.


Japan

KUSURI NO AOKI CO., LTD. operates a drug store chain.  The Company sells medical drugs, cosmetics, toiletries, household and sundry goods, and groceries.  Some of their stores sell alcoholic beverages and frozen foods as well.

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Kusuri No Aoki (3398 JP)

Genky Drugstores (9267 JP) Aims for 10% Growth

Genky Drugstores' unique blend of low prices, in-house control over store, product development, and logistics is making it a growing threat to...

Michael Causton

Aeon (Maybe) Gets Tsuruha, Could Trigger Wave of Mergers in the Sector (And Beyond)

Aeon's potential increased stake in Tsuruha Holdings and possible merger with Welcia will likely prompt drugstore competitors to consider their...

Michael Causton

Aeon, Welcia and Tsuruha: Creating an FMCG Behemoth

Merger between Welcia and Tsuruha under Aeon may happen as FMCG-drugstores increasingly compete with supermarkets and CVS, so we need to view the...

Michael Causton

Japan's Governance: Kusuri No Aoki Holdings (3549): 2QFY5/2022 Financial Results Briefing

The challenge for its mid store format is to make the number of employees per store space in mid stores smaller than in small stores, and to make...

Metrical Inc

Matsukiyo Cocokara: Together at Last

MatsukiyoCocokara may top the drugstore ranking post-merger but Welcia and Tsuruha have grown much faster and may take the lead again soon given...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Genky Drugstores (9267 JP) Aims for 10% Growth

​Genky Drugstores' unique blend of low prices, in-house control over store, product development, and logistics is making it a growing threat to...

Michael Causton

Aeon (Maybe) Gets Tsuruha, Could Trigger Wave of Mergers in the Sector (And Beyond)

​Aeon's potential increased stake in Tsuruha Holdings and possible merger with Welcia will likely prompt drugstore competitors to consider their...

Michael Causton

Aeon, Welcia and Tsuruha: Creating an FMCG Behemoth

​Merger between Welcia and Tsuruha under Aeon may happen as FMCG-drugstores increasingly compete with supermarkets and CVS, so we need to view the...

Michael Causton

Japan's Governance: Kusuri No Aoki Holdings (3549): 2QFY5/2022 Financial Results Briefing

The challenge for its mid store format is to make the number of employees per store space in mid stores smaller than in small stores, and to make...

Metrical Inc

Matsukiyo Cocokara: Together at Last

MatsukiyoCocokara may top the drugstore ranking post-merger but Welcia and Tsuruha have grown much faster and may take the lead again soon given...

Michael Causton

Genky Drugstores' unique blend of low prices, in-house control over store, product development, and logistics is making it a growing threat to...

Aeon's potential increased stake in Tsuruha Holdings and possible merger with Welcia will likely prompt drugstore competitors to consider their...

Merger between Welcia and Tsuruha under Aeon may happen as FMCG-drugstores increasingly compete with supermarkets and CVS, so we need to view the...