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

PAL GROUP Holdings Co., Ltd. / Equity Bottom-Up

<ul>
<li>Pal Group’s founder retired last month after 50 years at the helm. </li>
<li>Since 2001, the fashion to variety store business has grown from ¥10 billion to a forecast ¥184 billion this year.</li>
<li>There remains growth potential in the variety store chain, 3Coins, as well as a revival in the fashion side.</li>
</ul>


Pal Group’s founder retired last month after 50 years at the helm. 
Since 2001, the fashion to variety store business has grown from ¥10 billion to a forecast ¥184 billion this year.
There remains growth potential in the variety store chain, 3Coins, as well as a revival in the fashion side.


Pal Group: Another Record as Founder Retires

Thematic (Sector/Industry)

<ul>
<li>Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.</li>
<li>2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.</li>
<li>While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.</li>
</ul>


Parts of the apparel/fashion sector made a complete recovery last year but performance was patchy, with high rates of growth from a few but more had sales below 2019.
2023-24 should be a stellar year thanks to inbound tourism growth and healthier, if still hesitant, domestic demand.
While profitability has risen significantly, the pressure to keep prices down is widening the gap between efficient operators and the rest.


Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

<ul>
<li>Pal Group posted record sales in FY2022 partly because fashion retail recovered but mostly because of it has a huge hit on its hands: variety store 3Coins.</li>
<li>Cheap variety stores have always been popular and are becoming even more so as prices rise and people spend more on the home.</li>
<li>3Coins has doubled sales in 2 years but expects continued strong growth going forward. With fashion sales also improving, Pal Group is one of few solid bets in lifestyle retailing.</li>
</ul>


Pal Group posted record sales in FY2022 partly because fashion retail recovered but mostly because of it has a huge hit on its hands: variety store 3Coins.
Cheap variety stores have always been popular and are becoming even more so as prices rise and people spend more on the home.
3Coins has doubled sales in 2 years but expects continued strong growth going forward. With fashion sales also improving, Pal Group is one of few solid bets in lifestyle retailing.


<ul>
<li>The 100 Yen shop model looked in danger when inflation began to bite and labour costs surged but the sector continues to expand</li>
<li>Their fixed price model meant there was little leeway to offset higher costs through higher prices but a survey shows 90% of respondents visited a Daiso store recently.</li>
<li>While Daiso has adapted quickly and looks to have a bright future, <a href="https://www.smartkarma.com/entities/seria-co-ltd" target="_blank" data-smartkarma-citation="entities:12989:1" rel="noopener">Seria Co Ltd (2782 JP)</a> refuses to adapt and has seen profits plummet.</li>
</ul>


The 100 Yen shop model looked in danger when inflation began to bite and labour costs surged but the sector continues to expand
Their fixed price model meant there was little leeway to offset higher costs through higher prices but a survey shows 90% of respondents visited a Daiso store recently.
While Daiso has adapted quickly and looks to have a bright future, Seria Co Ltd (2782 JP) refuses to adapt and has seen profits plummet.


100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

<ul>
<li>After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. </li>
<li>Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.</li>
<li>This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. </li>
</ul>


After the accelerated transition to digital channels during Covid, the fashion sector had a calmer year in 2022 although GTVs still grew around 10%. 
Most retailers spent the time investing in more seamless and coherent omnichannel models, and in making the best use of stores and staff in online promotions.
This shift to omnichannel is also leading to changing merchandising, including pre-selling inventory, while others are turning their online stores into malls. 


Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan

PAL GROUP Holdings Co., Ltd. operates a chain of casual clothing stores based in Kansai area. The Company manufactures and retails men's and women's casual wear and accessories.  The Company also sells its products on the Internet.

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PAL GROUP Holdings Co., Ltd. (2726 JP)

Pal Group: Another Record as Founder Retires

Pal Group's founder retired after 50 years, leaving behind a thriving business with significant growth potential in both their variety store chain...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

Pal Group's 3Coins: Coining It

Pal's record sales in FY2022 were driven by its variety chain 3Coins, which has grown fast and is expected to continue to do so, making Pal Group...

Michael Causton

100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

Seria has always extracted the highest profits from the 100 Yen sector even as its larger competitor, Daiso, grew faster. Now, with labour and...

Michael Causton

Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan's fashion e-commerce sector offers major growth stories among both online malls and physical retailers making a successful transition to...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pal Group: Another Record as Founder Retires

​Pal Group's founder retired after 50 years, leaving behind a thriving business with significant growth potential in both their variety store chain...

Michael Causton

Japan's Fashion Sector 2023: Recovery Complete for Some as the Sector Looks Forward

​Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Michael Causton

Pal Group's 3Coins: Coining It

​Pal's record sales in FY2022 were driven by its variety chain 3Coins, which has grown fast and is expected to continue to do so, making Pal Group...

Michael Causton

100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

Seria has always extracted the highest profits from the 100 Yen sector even as its larger competitor, Daiso, grew faster. Now, with labour and...

Michael Causton

Japan's Fashion E-Commerce Evolving into Dynamic and Seamless Omnichannel, Winners Will Take All

Japan's fashion e-commerce sector offers major growth stories among both online malls and physical retailers making a successful transition to...

Michael Causton

Pal Group's founder retired after 50 years, leaving behind a thriving business with significant growth potential in both their variety store chain...

Apparel sector's recovery in 2022 was uneven. Tourism and domestic demand are expected to boost 2023-24 sales, but pricing pressure is widening...

Pal's record sales in FY2022 were driven by its variety chain 3Coins, which has grown fast and is expected to continue to do so, making Pal Group...