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>The number of new mall developments in 2024 in Japan held steady but will collapse in 2025 due to higher costs, lower demand and a lack of labour.</li>
<li>At the same time, for existing malls, sales were robust through 2023 and 2024 and look set to continue at higher levels despite consumer restraint.</li>
<li>Both locals and tourists alike use malls for leisure, entertainment and shopping and, as the number of malls falls, and upgrades continue, efficiency is improving.</li>
</ul>


The number of new mall developments in 2024 in Japan held steady but will collapse in 2025 due to higher costs, lower demand and a lack of labour.
At the same time, for existing malls, sales were robust through 2023 and 2024 and look set to continue at higher levels despite consumer restraint.
Both locals and tourists alike use malls for leisure, entertainment and shopping and, as the number of malls falls, and upgrades continue, efficiency is improving.


Japan Shopping Mall Sector in 2025: Robust Sales, Fewer Doors

Equity Bottom-Up

<ul>
<li>J Front has been pushing ahead with new ways to get younger (and richer) customers into its stores. </li>
<li>It recently opened a high end art floor at Matsuzakaya Nagoya, continues to expand its fashion subscription business, and will shortly open the first joint store with Komehyo.</li>
<li>It is also investing heavily in real estate in key cities as a third major platform to its business.</li>
</ul>


J Front has been pushing ahead with new ways to get younger (and richer) customers into its stores. 
It recently opened a high end art floor at Matsuzakaya Nagoya, continues to expand its fashion subscription business, and will shortly open the first joint store with Komehyo.
It is also investing heavily in real estate in key cities as a third major platform to its business.


J Front Diversifies to Generate More Income

<ul>
<li>Something remarkable has happened in the department store sector. A year ago, both big city stores and those in the regions were all still well behind sales levels in 2010. </li>
<li>But stores in the largest 10 cities exceeded 2010 sales levels by 2% last year. Emphasising the yawning gap, regional stores extended their losses with sales down 42% on 2010.</li>
<li>The elite have also suddenly started making money. A lot of it. We now have a (very profitable) luxury retail sector and a (poor returning) middle-market general merchandise store sector.</li>
</ul>


Something remarkable has happened in the department store sector. A year ago, both big city stores and those in the regions were all still well behind sales levels in 2010. 
But stores in the largest 10 cities exceeded 2010 sales levels by 2% last year. Emphasising the yawning gap, regional stores extended their losses with sales down 42% on 2010.
The elite have also suddenly started making money. A lot of it. We now have a (very profitable) luxury retail sector and a (poor returning) middle-market general merchandise store sector.


Japanese Department Stores: The Elite Profit Machines

<ul>
<li>Shopping malls are now trading at pre-pandemic levels again and developers and tenants alike are much more upbeat and optimistic about the future. </li>
<li>The pandemic, alongside competition from e-commerce, has left its mark but this has mostly been a good thing, forcing more proactive management of malls.</li>
<li>Profitability remains a concern but rents are up for some and more efficiencies are being introduced through digitisation.</li>
</ul>


Shopping malls are now trading at pre-pandemic levels again and developers and tenants alike are much more upbeat and optimistic about the future. 
The pandemic, alongside competition from e-commerce, has left its mark but this has mostly been a good thing, forcing more proactive management of malls.
Profitability remains a concern but rents are up for some and more efficiencies are being introduced through digitisation.


Japan Shopping Malls: More Proactive and Disciplined Post-Covid

<ul>
<li>While big city department stores have only lost 12.8% of sales since 2009, regional stores have lost 45%, emphasising how wide the gap in performance has become. </li>
<li>But Japan is also witnessing the emergence of a new elite group of department stores who are far ahead even of their big city peers.</li>
<li>This elite group have found more traction among the new wealthy and affluent city dwellers and growth is set to continue, with record sales and – especially – profit.</li>
</ul>


While big city department stores have only lost 12.8% of sales since 2009, regional stores have lost 45%, emphasising how wide the gap in performance has become. 
But Japan is also witnessing the emergence of a new elite group of department stores who are far ahead even of their big city peers.
This elite group have found more traction among the new wealthy and affluent city dwellers and growth is set to continue, with record sales and – especially – profit.


Japan's Department Stores: Elitism Rules and There's Profit in It

Japan

PARCO CO., LTD. operates shopping centers specializing in fashion shops in Kanto, Chubu, Kansai, Hokkaido, and Kyushu area.  The Company also operates playhouses and theaters.

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Parco Co Ltd (8251 JP)

Japan Shopping Mall Sector in 2025: Robust Sales, Fewer Doors

New mall developments in Japan to collapse in 2025 due to higher costs, lower demand, and lack of labor, while existing malls see robust sales and...

Michael Causton

J Front Diversifies to Generate More Income

J Front is diversifying to raise OPM, targeting younger, wealthier customers by opening high-end art floors, expanding fashion subscriptions, and...

Michael Causton

Japanese Department Stores: The Elite Profit Machines

Dept. stores in big cities have grown 2% since 2010, but regional are down 42%, a massive gap. The elite luxury sector is thriving, with big...

Michael Causton

Japan Shopping Malls: More Proactive and Disciplined Post-Covid

Shopping malls rebound to pre-pandemic levels, prompting optimism for the future as better management drives efficiency. This is an in-depth...

Michael Causton

Japan's Department Stores: Elitism Rules and There's Profit in It

Regional department stores in Japan have lost 45% of sales since 2009, while big city stores have only lost 12.8% and a new elite group of...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Shopping Mall Sector in 2025: Robust Sales, Fewer Doors

​New mall developments in Japan to collapse in 2025 due to higher costs, lower demand, and lack of labor, while existing malls see robust sales and...

Michael Causton

J Front Diversifies to Generate More Income

​J Front is diversifying to raise OPM, targeting younger, wealthier customers by opening high-end art floors, expanding fashion subscriptions, and...

Michael Causton

Japanese Department Stores: The Elite Profit Machines

​Dept. stores in big cities have grown 2% since 2010, but regional are down 42%, a massive gap. The elite luxury sector is thriving, with big...

Michael Causton

Japan Shopping Malls: More Proactive and Disciplined Post-Covid

​Shopping malls rebound to pre-pandemic levels, prompting optimism for the future as better management drives efficiency. This is an in-depth...

Michael Causton

Japan's Department Stores: Elitism Rules and There's Profit in It

​Regional department stores in Japan have lost 45% of sales since 2009, while big city stores have only lost 12.8% and a new elite group of...

Michael Causton

New mall developments in Japan to collapse in 2025 due to higher costs, lower demand, and lack of labor, while existing malls see robust sales and...

J Front is diversifying to raise OPM, targeting younger, wealthier customers by opening high-end art floors, expanding fashion subscriptions, and...

Dept. stores in big cities have grown 2% since 2010, but regional are down 42%, a massive gap. The elite luxury sector is thriving, with big...

Shopping malls rebound to pre-pandemic levels, prompting optimism for the future as better management drives efficiency. This is an in-depth...

Regional department stores in Japan have lost 45% of sales since 2009, while big city stores have only lost 12.8% and a new elite group of...