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Mixed Retailers in Japan

Japan mixed retailers market: -2% decline witnessed during 2012

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2014-02-18 11:25:01 - Mixed Retailers in Japan - a new market research report on

AEON Group continued to lead the Japan mixed retailers market with a value share of over 14% in 2012. AEON Group is aiming to attract wider age segments of consumers to its stores by strengthening its services for elderly customers. In 2012, AEON Group conducted test marketing of such services in its Fukuzu outlet and plans to implement similar schemes in other outlets over the forecast period. Such elderly targeted services include special discounts at stores such as sandwich shops and jewellery stores housed inside the mall. Since elderly consumers are growing in number, AEON Group has dedicated itself to create more comfortable shopping environments for older customers.

Value sales of mixed retailers declined by 2% in 2012. Although warehouse clubs



experienced sales growth of 4% in 2012, a sharp decline in department store sales negatively affected overall category growth. Sales of department stores have been declining for 15 years in a row. Mass merchandisers also recorded a 2% value sales decline in 2012 as many elderly consumers are starting to find them too large and less convenient when trying to find the products they need.

Value sales of mixed retailers are expected to post a negative CAGR of 1% over the forecast period. With an uncertain economic outlook and changing consumer preferences, department stores are anticipated to suffer further decline in sales. Although the number of inbound tourists is returning to pre-Tohoku earthquake levels, contraction of the industry is inevitable as the majority of retailers rely on domestic consumers´ purchases. Ageing of existing customers at department stores is expected and retailers will be required to implement unique sales strategies to attract younger consumers. As elderly consumers aged over 70 years tend to be less inclined to make purchases, widening the target age group is a necessary step to avoid further contraction of the industry.

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