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Major changes expected
in Japanese retailing:
Mycal down, Fast and Aeon up, foreigners position themselves There is hardly a day without major developments being reported from the Japanese retail sector. The economic slump has hit many of the large companies, with huge department store retailer Sogo the first victim already a year ago. Now Mycal, the country's fourth largest supermarket operator, has to look for outside support for its survival. Wal-Mart and Carrefour have been mentioned in the short-list of companies that could take over the Osaka-based ailing retailer, as have some of the local competitors. A final decision is expected before the end of this month. This can bring important changes to the whole Japanese commerce scene. But there are also companies that are doing well. The most successful of these is Fast retailing, which operates a large and growing chain of Uniqlo low-price fashion shops. The four first European outlets in what will be a major operation have recently been opened in the United Kingdom. It would not be to exaggerate to say that this company will be a serious competitor to H&M, Gap, Zara and other global clothing chains. Aeon, the newly established company which owns Japan's third largest retailer Jusco, has also survived the economic downturn better than many competitors. Operating profits are up to the extent that the company has been able to compensate for considerable expenditure due to pensions funds losses. Retail giant Ito-Yokado has been forced to a rough price competition with the Jusco supermarkets. This has been made possible by the good results of the 7-Eleven chain of convenience stores, which the company owns. Japan is the world's second largest consumer market, after the United States. European and American commerce multinationals have started establishing themselves here as a result of an opening up of the retail sector. Carrefour is already running three hypermarkets, apparently with good results. Costco is also established in Japan and Wal-Mart is expected to open shop shortly. In December, there will be a meeting in Tokyo between UNI Commerce and its Japanese affiliates, to discuss organising and social dialogue in the multinational commerce enterprises and more broadly in the whole sector. |
