Variety Stores in Japan

PROSPECTS

Variety stores maintains a positive performance in 2018

Variety stores maintained a positive performance in 2018, with major brands such as Don Quijote, MUJI and 100 Yen Shop seeing ongoing growth. In an environment of persistent consumer price-sensitivity, variety stores such as Don Quijote and 100 Yen Shop are benefiting from their offer of a wide range of products at competitive prices.

Targeting inbound tourists

Since the range of duty free goods was expanded in 2014, inbound tourists have shifted their spending from luxury brands to relatively inexpensive consumer goods such as food, cosmetics and medicines. Furthermore, tourists are placing a greater emphasis on in-store experience.

MUJI to open first hotel in Japan

MUJI is scheduled to open a new flagship store and hotel in Ginza, a popular shopping area for inbound tourists visiting Tokyo, in April 2019. This will be the brand’s third hotel globally, following the opening of sites in Shenzhen in January 2018 and Beijing in June 2018, as it seeks to raise brand-awareness ahead of the 2020 Tokyo Olympic Games.

COMPETITIVE LANDSCAPE

Don Quijote remains the leading variety stores operator

In 2018, the leading variety stores operator, Don Quijote, maintained a trend of share growth that persisted throughout the review period. The company saw sales rise annually throughout 2013-2018 supported by the expansion of tis store network.

100 yen shops expand their presence

100 Yen Shop operates the largest store network in the variety stores channel in Japan, and drove value growth through an ongoing increase in its number of outlets during the review period. 100 Yen Shop and other brands operating the 100 yen store concept benefit from persistent price-sensitivity amongst domestic consumers and increasing popularity amongst inbound tourists.

Increasingly attractive to other retailers

As 100 Yen Shop and similar retailers’ outlets attract a wide range of consumers with their treasure hunt-style experience, department stores and shopping centres are seeking to include them on their premises in order to increase footfall. Daimaru, a traditional department store operator, has opened a Seria 100 Yen Shop in its Kochi outlet, using up the whole of one floor.

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