|
|
 |
|
 |
|
|
|
|
|
|
|
|
| Mergers, Alliances and Other Reorganization Also Taking Place among General Merchandise Stores |
|
A storm of reorganizations is also raging in the general merchandise store industry.
By making MYCAL Corporation, which it had been supporting, into a consolidated subsidiary, AEON Co., Ltd.'s consolidated sales in FY2004 is forecast to surpass the 4 trillion yen mark for the first time. It is now definite that AEON will overtake Ito Yokado Co., Ltd. - its biggest rival - in terms of the scope of sales. AEON's aggressive strategy is drawing much attention. Despite deflation and sluggish consumption, AEON is aiming to enhance its forces not only through supermarkets but also in overall retail businesses, including home improvement centers and drug stores.
AEON's investment in home improvement retailing is a move to increase the number of new types of stores being called a "supercenter." These supercenters are large-scale single-story stores that integrate a home improvement center and supermarket. Eyes are on these stores which enable one-stop shopping in regional towns and cities that do not have large-scale retail shops. By investing aggressively in home improvement centers, AEON intends to utilize the know-how it gains in the future designing of new stores.
Meanwhile, Ito Yokado has always been guarded about expanding its forces through alliances and acquisitions, and this position still does not seem to have changed in a major way. Although Ito Yokado's strategy for the near term will focus around enhancing the competitiveness of its existing stores, the company is, however, starting to display a willingness to expand the number of new stores or enlarge floor space. In 2003, Ito Yokado opened a store on the premises of the former Nara Sogo Department Store, which had been shut down. There is something similar to AEON in Ito Yokado's stance about not been particular about any specific type of operation, such as a supermarket or a department store. |
|
| Tesco, the Biggest Retailer in the UK, Extending its Tentacles to Mid-sized Supermarkets in Japan |
|
| In regards to The Daiei, Inc., a possible strategic alliance with Carrefour as well as a possible merger with The Maruetsu, Inc., a Daiei Group food supermarket chain, were all hot topics at one point in relation to the ailing Daiei supermarket chain which was once a top general merchandising firm in Japan. In the end, Daiei submitted an application to the Industrial Revitalization Corporation of Japan to gain support for business revitalization. |
|
 |
|
There will probably be increasing cases when troubled supermarkets will have to choose between being absorbed by general merchandiser AEON or a foreign-affiliated retailer, both of which are on expansion tracks, or tying alliances with other supermarkets.
In 2003, AEON succeeded in investing in Kasumi Co., Ltd. based in Ibaraki Prefecture, gaining a foothold to supermarkets in the Tokyo metropolitan region. Posful Corporation of Hokkaido also finally came under AEON's umbrella.
Meanwhile, regarding the movement of foreign capital companies, Wal-Mart Stores, Inc. is experiencing some trouble rehabilitating general supermarket chain Seiyu, Ltd., and Tesco plc, the biggest retailer in the UK, is using it as an opportunity to spread its tentacles to mid-sized supermarkets. In 2003, it acquired C Two-Network Co., Ltd. (C2) based in the Tokyo metropolitan area and has just started advancement into the Japanese market. While using C2 stores as experimental grounds for small-sized stores in the Tokyo metropolitan area, Tesco also seems to be continuing to sound out supermarkets nationwide regarding alliances. |
|
|
|
|
|
|
