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

<ul>
<li>As confirmed last month, Trial will acquire Seiyu later this year, giving it access to 240 more stores to add to almost 350 already in operation.</li>
<li>The prospect of combining Trial’s undeniable knowhow in retail tech and its laser-focused concern with reducing costs could cause rivals serious problems.</li>
<li>Despite the obvious benefits, Trial's share price has fallen to around the same it was a year ago largely due to concerns over OPM but profitability will improve fast.</li>
</ul>


As confirmed last month, Trial will acquire Seiyu later this year, giving it access to 240 more stores to add to almost 350 already in operation.
The prospect of combining Trial’s undeniable knowhow in retail tech and its laser-focused concern with reducing costs could cause rivals serious problems.
Despite the obvious benefits, Trial's share price has fallen to around the same it was a year ago largely due to concerns over OPM but profitability will improve fast.


Trial: Soon to Be Japan’s Largest Supermarket

Event-Driven

<ul>
<li>Until last year, Trial was a Kyushu-based discount FMCG retailer, that had just completed its IPO. </li>
<li>Today, it is one of the largest FMCG retailers in the country having won the bidding to acquire Seiyu from foster care under KKR.</li>
<li>This is a massive development that will pressure other rivals to step up in order to compete.</li>
</ul>


Until last year, Trial was a Kyushu-based discount FMCG retailer, that had just completed its IPO. 
Today, it is one of the largest FMCG retailers in the country having won the bidding to acquire Seiyu from foster care under KKR.
This is a massive development that will pressure other rivals to step up in order to compete.


Trial Purchase of Seiyu Creates New Japanese Retail Power

<ul>
<li>Trial was already one of Japan's leading discount retailers with a strong network of stores down south in Japan although rather low margins.</li>
<li>Buying Seiyu transforms this local retailer into a national champion and one of the top 10, with a highly complementary set of stores, product expertise, warehouses and tech.</li>
<li>Together, the two will now be able to take on Aeon, Seven &amp; I, PPI and other major retailers in building the first true national grocery chains in Japan.</li>
</ul>


Trial was already one of Japan's leading discount retailers with a strong network of stores down south in Japan although rather low margins.
Buying Seiyu transforms this local retailer into a national champion and one of the top 10, with a highly complementary set of stores, product expertise, warehouses and tech.
Together, the two will now be able to take on Aeon, Seven &amp; I, PPI and other major retailers in building the first true national grocery chains in Japan.


Trial a Top 10 Retailer After Seiyu Purchase from KKR (With Big Synergies)

Equity Capital Markets

<ul>
<li>A lot has been said and written about Trial's IPO but much of this relates to pass performance and comparing it to supermarkets.</li>
<li>As the company's latest Trial Go store in Fukuoka shows,  Trial is a tech-based retailer and a true discounter, and discounting is where the growth is in Japanese FMCG.</li>
<li>Trial thinks its technology can reduce costs significantly, improving margins while allowing it to roll out more small format stores to compete with convenience stores. It may be right.</li>
</ul>


A lot has been said and written about Trial's IPO but much of this relates to pass performance and comparing it to supermarkets.
As the company's latest Trial Go store in Fukuoka shows,  Trial is a tech-based retailer and a true discounter, and discounting is where the growth is in Japanese FMCG.
Trial thinks its technology can reduce costs significantly, improving margins while allowing it to roll out more small format stores to compete with convenience stores. It may be right.


Trial IPO to Drive Tech Innovation Targeting Convenience Stores

<ul>
<li>Deep discounter OK Super’s entry into the Kansai market is causing local competitors real headaches –one estimate says it has taken 10% share around its first store already. </li>
<li>OK has exposed just how derivative most existing chains have become and, with the introduction of genuine price competition at a time when consumers are increasingly price sensitive</li>
<li>While OK Super is a private company, some of the competitors are listed like Kansai Food Market who, without new ideas, will suffer in the next three years.</li>
</ul>


Deep discounter OK Super’s entry into the Kansai market is causing local competitors real headaches –one estimate says it has taken 10% share around its first store already. 
OK has exposed just how derivative most existing chains have become and, with the introduction of genuine price competition at a time when consumers are increasingly price sensitive
While OK Super is a private company, some of the competitors are listed like Kansai Food Market who, without new ideas, will suffer in the next three years.


OK Super: Disrupting Kansai Supermarket Sector

Japan

Trial Holdings Inc. operates distribution retail businesses. The Company provides foods, daily necessities, hard goods, and other products. Trial Holdings also develops retail artificial intelligence, real estate development, restaurants management, and other businesses.

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Trial Holdings (5882 JP)

Trial: Soon to Be Japan’s Largest Supermarket

Trial's acquisition of Seiyu will give it access to 240 more stores, potentially causing problems for rivals with its retail tech expertise and...

Michael Causton

Trial Purchase of Seiyu Creates New Japanese Retail Power

Kyushu-based retailer Trial becomes one of Japan's largest FMCG retailers after acquiring Seiyu, putting pressure on competitors to step up.

Michael Causton

Trial a Top 10 Retailer After Seiyu Purchase from KKR (With Big Synergies)

Trial, a leading discounter in Japan, becomes a national champion by acquiring Seiyu, creating a strong competitor to major retailers in building...

Michael Causton

Trial IPO to Drive Tech Innovation Targeting Convenience Stores

Trial failed to complete an IPO and is now going again and the same fundamentals outlined in this insight apply today as it is a long-term viewpoint.

Michael Causton

OK Super: Disrupting Kansai Supermarket Sector

OK Super's entry into the Kansai market is shaking up local competitors with its deep discounts, posing a threat to existing chains lacking...

Michael Causton

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Trial: Soon to Be Japan’s Largest Supermarket

​Trial's acquisition of Seiyu will give it access to 240 more stores, potentially causing problems for rivals with its retail tech expertise and...

Michael Causton

Trial Purchase of Seiyu Creates New Japanese Retail Power

​Kyushu-based retailer Trial becomes one of Japan's largest FMCG retailers after acquiring Seiyu, putting pressure on competitors to step up.

Michael Causton

Trial a Top 10 Retailer After Seiyu Purchase from KKR (With Big Synergies)

​Trial, a leading discounter in Japan, becomes a national champion by acquiring Seiyu, creating a strong competitor to major retailers in building...

Michael Causton

Trial IPO to Drive Tech Innovation Targeting Convenience Stores

Trial failed to complete an IPO and is now going again and the same fundamentals outlined in this insight apply today as it is a long-term viewpoint.

Michael Causton

OK Super: Disrupting Kansai Supermarket Sector

​OK Super's entry into the Kansai market is shaking up local competitors with its deep discounts, posing a threat to existing chains lacking...

Michael Causton

Trial's acquisition of Seiyu will give it access to 240 more stores, potentially causing problems for rivals with its retail tech expertise and...

Kyushu-based retailer Trial becomes one of Japan's largest FMCG retailers after acquiring Seiyu, putting pressure on competitors to step up.

Trial, a leading discounter in Japan, becomes a national champion by acquiring Seiyu, creating a strong competitor to major retailers in building...

OK Super's entry into the Kansai market is shaking up local competitors with its deep discounts, posing a threat to existing chains lacking...