Uniqlo by the numbers

August 2010 was another difficult month for Uniqlo. With same-store-sales decreasing 9.3% due to weather and the sluggish economy, they have experienced six months of declining sales this year. Overall Uniqlo opened one new store and closed two existing stores bringing their total number of stores in Japan to 788 (as of August 2010). Besides a decrease in same-store-sales in August, Uniqlo also experienced a 0.4% decrease in the number of customers as well as a 9% decrease in sales per customer. Overall, not one of Uniqlo’s strongest months especially when they experienced an increase in same-store-sales of 5.6% in August 2009 with only 750 stores.

Sales at Fast Retailing’s Uniqlo have been on decline most of 2010, with reasons varying from the weather to the still slow economy. While these reasons are true Uniqlo has also made a few mistakes, namely, oversaturating the retail market by opening too many retail stores (788 as of August 2010), building up excess inventory, which then results in discounting already inexpensive merchandise – lowering the brand's image of quality=affordability meet to one of a discount clothier i.e., if you want that 1,050 yen t-shirt just wait a few weeks and you can buy it for 750 yen. Most recently Uniqlo will begin offering premium jeans for 9,999 yen, a sharp departure from their strongly built brand image of quality=affordability.

Solution (simply put) stop opening new stores, close down non-performing stores, get rid of excess inventory through an actual outlet (no need to make all 788 stores outlets) and choose a category quality=affordability of premium - it is fine to have both just not under the same brand, that’s why there are diffusion lines i.e., G.U..

Let’s hope when the September numbers for Uniqlo are released next week they will report positive same-store-sales and we can look forward to positive signs of improvement.

Data Fast Retailing Co., Ltd.

Get your GAS in Kyoto

This past Friday GAS launched their newest flagship store in Kyoto, now their seventh flagship joining existing stores in Tokyo, Nagoya, Osaka, Kobe, and Fukuoka.

The GAS flagship store, 160sqm, is located in trendy Kawaramachi Shijo and was designed by Milan-based APRIL Studio. The design is based on a new retail concept GAS is developing worldwide. The concept: Re-Thinking, is based on maximizing the individualism and personality of the room and is intended to give rise to a synergy utilizing distinguishing basics like rustic furniture and exposed walls with the ceiling and floor left in the original raw state – with the store being totally focused on the product – GAS’s iconic denim.

The Kyoto location has been chosen for the importance of the Kansai-area market as well as to emphasize the increased significance of the Japanese market for GAS. Today Japan is the second largest market for GAS outside of Italy and with turnover of almost 912 million yen in 2009 it is also the most important foreign market.

Information GAS

Update on the new Abercrombie & Fitch store

Driven by a comment to a recent post on Abercrombie & Fitch I wanted to give an update on the new A&F store opening in Fukuoka. Slated to open this November, the A&F store will open in trendy Tenjin also known as the ‘Gateway to Asia”. This past weekend one of my fashion scouts was in Tenjin where he saw the A&F building being completed (sorry no pictures). Like the Ginza store this A&F store will be multi-floored with a similar dark décor and club like ambiance (including the fragrance being sprayed every one hour) and of course lots of beautiful people working there including shirtless male models to greet you at the door. This will be Abercrombie & Fitch’s second store in Japan and Asia with the possibility of more to come (Aoyama/Omotesando) as well as a non-confirmed opening of their Hollister brand-store in Japan in 2011 - I still have to confirm this as I have only heard it from two different sources in Japan. 

Louis Vuitton's Anti-Counterfeit Agreement

In a move to distinguish themselves from their competitors, Rakuten Auction Inc. has signed a first-of-its kind anti-counterfeit agreement with Louis Vuitton Malletier SA. Among the top ten global Internet companies with 65 million users, Rakuten with LV’s expertise in fighting counterfeits will introduce systems to alert consumers against fakes, track sellers and strengthen its systems of eliminating fake Louis Vuitton products and ensure a safer shopping experience online.

Paco and Rei

Rie Kawakubo and Comme de Garçons are collaborating with sixties fashion icon Paco Rabanne. The collaboration will be centered on a reinterpretation of an iconic Rabanne handbag from 1969. The reinterpretation will involve a relaunch of the bag with a variety of new materials. The new and reinterpreted 1969 iconic Paco Rabanne bag will be sold exclusively in six of the Comme de Garçons stores with some distribution to select retailers.

Information Comme de Garçons

Sophisticated Seduction

For everyone who followed my live tweets from the Gucci Women's Spring/Summer 2011 Fashion Show in Milan on Monday evening, I hope you enjoyed it as much as I did.

For the record I was not physically in Milan at the show, though I was virtually there – through the Gucci Connect event - a first of its kind truly interactive fashion show by Gucci. From my virtual seat 1710E (yes seat numbers were assigned), and several cameras at the event space I had a spectacular view of the show at many different angles. While watching the show I was able to see the audience and they in-turn were able to see me - using webcams I as well as the many faces of the virtual attendees from around the world were visible to the audience as well to each other. The virtual attendees were able to tweet, update our Facebook pages as well as chat-live and discuss the collection as it came down the runway. I was able to discuss with users around the world the chic color dresses cut to show skin, the monotones of black and desert tones, the skintight leathers, as well as the jade, blue, and violet color coordinates and bronze belts. Imagine during a collection show having a conversation about Gianni’s use of vibrant-hued dresses, with intricate craftings of crystals, tassels, fringe and more…and not being shushed by a member of the audience.
Gucci was not the first company to show their collection presentation on line i.e., Burberry, Dolce & Gabbana, etc…but they are the first to invite virtual attendees and allow them to be a part of the audience and to interact with each other as well as vote on their favorite looks. Fashion house be aware, Gucci has taken social media to the next interactive level. I am looking forward to what’s next.

The picture above and to the left is one of my favorites from the show.

Picture & Descriptions WWD

Interesting survey on women's shoes

With the economy still slow to recover and handbags and accessory sales stagnant, and apparel sales even in decline, shoes, especially women’s shoes are growing. A survey by Uniqlo of 450 female customers in their teens, 20s and 30s show that on average women buy 3.5 pairs of shoes per year, with some buying as many as 30 pairs of shoes per year. On average the respondents in the survey owned 11.7 pairs of shoes with over two-thirds of them considering shoes the most important fashion item they owned; more important than even handbags and accessories.

I would be curious to know how many shoes on average men own - even including sneakers.

Survey Results by Uniqlo

Abercrombie & Fitch in Aoyama?

Rumor has it with the closing of the Miu Miu flagship store in Aoyama (with a new one opening soon in Ginza) Abercrombie & Fitch is interested in the space to open their next shop. This would be the third Abercrombie & Fitch shop in Japan after the Fukuoka store opens this November. This will also be A&F’s second attempt to open a shop in this area; the first was trying to open in the location of the old GAP flagship in Harajuku at the intersection of Omotesando Dori and Meiji Dori but those talks fell apart when A&F wanted the whole building and the landowner wants to develop the space as a multi-brand building.

If Abercrombie & Fitch are successful in getting the space in Aoyama they will have some good company in Prada, Reed Krakoff, Chloe, Undercover by Jun Takahashi and many more in an area that is quickly developing and expanding.

30 straight months and still going...down

Sales at department stores in Japan fell 3.2% to 434.6 billion yen in August to mark the 30th straight month of declining sales. Tokyo department sales fared worse with sales dropping 3.4% to 103.3 billion for the month of August.

Merchandise hit particularly bad were high-priced items and fall/winter apparel launched during the scorching days of August, as well the slow recovering economy still has many consumers hesitant about spending.

Data Japan Department Stores Association

Levi's Vintage Opens Today

Levi’s will open their new Levi’s Vintage Clothing store in Aoyama today. The new, first-of-its kind concept store at 1,614 sqf will carry a mixture of vintage and new replica apparel including jeans, sweatshirts, coordinates, and even some non-Levi’s apparel. The new replica jeans will be copied after eight original models of Levi’s 501 jeans ranging from 1890 to 1966 and will sell at a price of 29,925 yen.

With the economy in Japan still slowly recovering, Levi’s will try to reposition themselves in the premium denim market, surely a challenge as the premium denim market is not doing well and is already very crowded.

Data Levi's XX

Japan a first for Rugby International

While in Omotesando today I stopped by the new Ralph Lauren Rugby store. The store which opened yesterday is the first international store opened by Ralph Lauren for Rugby since the brand launched in 2004. At 4,300sqf the Rugby store is located at the back corner (outside) of the Omotesando Ralph Lauren flagship. The Rugby store carries edgy preppy/rugby inspired apparel, targeting young adults with a lower price point. Popular items at the Rugby store already are rugby shirts, polos jackets, suits, jeans, outerwear and accessories all with a distressed look. Rugby also carries a variety of patches customers can purchase to customize their Rugby. Unlike Polo the apparel does not carry a motif of a polo player but rather a small embroidered rugby player, the “RRL” monogram or a skull & crossbones motif.

Rugby, with their lower priced items opens at an opportune time when consumers are buying more fast-fashion and diffusion collections.

Is Topshop Over Expanding?

Today, the new Shinjuku Topshop opens joining Harajuku, Yokohama, and Sapporo. This Topshop flagship store will be the largest of the four Topshop stores in Japan with around 1,000sqm of sales space. Following up the Shinjuku opening will be two new Topshop stores in Osaka in 2011. The shops are planned to open in Umeda in May of next year and Shinsaibashi next September and have sales space of 825sqm. Adding to their Osaka expansion Topshop plans on opening another four new stores a year over the next three years meaning a total of about twelve stores by 2013 in Japan with sales forecasted to reach up to 15 billion yen.

Are 15 Topshop stores in Japan too many?

Data: T's Co.,

Lumine wins negotiation rights to Seibu Yurakucho space

Following up on a recent blog, Lumine Co. has won the first rights to negotiate for the Seibu Yurakucho space poised to close at the end of this year. With the negotiation rights won, there is little doubt that Lumine will open a new shopping complex at the coveted and much sought after prime real estate Yurakucho space, planned for the fall of 2011.

Uniqlo Jeans Going Premium

In a move to alter their brand image Fast Retailing’s Uniqlo will offer jeans for 9,990 yen starting next month. The new jeans which will be manufactured in Fukuyama, Hiroshima by denim maker Kaihara Co., will be labeled “Made in Japan”, which it is hopes will help enhance the Uniqlo brand image from a discount clothier to a premium brand for jeans. This could be difficult as Fast Retailing has built a brand around inexpensive and high quality apparel, especially their g.u. jeans which sell for one tenth of the new Uniqlo jeans at 990 yen.

Do you think Uniqlo’s new branding for their denim will be successful? Can they change their brand perception from cheap to chic?

Will Mitsukoshi Change the Department Store Landscape in Japan?

For those of you who followed my twitter session this past Saturday, you may have gotten an idea of the new grandiose vision which is now Ginza Mitsukoshi. There are thirteen floors including two basement levels, starting with food on the lowest level, followed by cosmetics (a first for cosmetics in basement) and then eight floors of fashion; RTW, ACC, SLG, for men, women and children. The 9th floor has an offering of deserts including a gelato café which carries a delicious pistachio gelato. The ninth floor also has a terrace with lawn and superb view of the Ginza skyline. As you climb further the tenth and eleventh floors are a culinary feast offering many different types of dishes at a wide variety of restaurants. Since it was opening day you would expect there to be lines for all the restaurants and the consumer did not disappoint. I chose Dim Joy, a dim sum restaurant with only a fifteen minute wait and I also was not disappointed; the food, service and ambiance were excellent. Overall the offerings of restaurants were the best I have seen in a department store setting.

Fashion-wise there truly was something for everyone. Each floor was an eclectic mix of high-fashion and more affordably priced fashion as well as a little something different added in i.e., a Tully’s Commu Café next to the New York Runway section, next to an Onitsuka Tiger corner near a G-Shock corner basically positioning trendy accessory brands with high-price fashion.

The first basement was full of gourmet food and deserts that made my sweet-tooth ache. Next I moved up to the second basement where I was surprised by the cosmetics counters there, though I questioned the move, the positioning seemed strong especially with the mixing of a few new jewelry brands and a Jo Malone London. The first floor at ground level was focused on handbags with Celine, Chloe, Bottega Veneta, YSL representing and Gucci having the best positioning by far at the bottom of the down escalator. Moving up to the second floor there are several comfortable chairs occupied by sleeping men as their wives no doubt were busy trying on shoes by Prada, Sergio Rossi, Salvatore Ferragamo, Chanel, Tods and Bruno Magli among others. The third floor was offered a variety of diffusion lines; See by Chloe, Marc by March Jacobs, Banner Barrett, Red Vivienne Westwood, Burberry Blue Label and the new New York Runway section carrying Rag & Bone, Alexander Wang, Issa, and Catherine Malandrino. Mixed in with these brands were a Tully’s Commu Café, Onitsuka Tiger corner and a G-Shock corner, there was even a Moussey Black. As I reached the fourth floor I realized this floor carried some of the more expensive brands like Stella McCartney, John Galliano, Bluemarine, Tods, MaxMara, Red Valentino, Gucci, Givenchy, Celine and of course a Harrods’s tea house. Climbing to the sixth floor I was happy to find men’s brands including the new Tom Ford corner (their third in Japan) as well as some regular stalwarts in Bottega Veneta, Armani, Ferragamo and more including jewelry and a cigar corner. The seventh floor was focused on more casual men’s brands including Diesel, Paul Smith, Comme de Garcons, and an offering of Mitsukoshi private label brands. The eighth floor was for infants to children and the ninth floor opened up to an outdoor terrace with a lawn and view of Ginza’s skyline including the Wako Tower Clock. The tenth and eleventh floors offered a variety of food from Italian, Japanese, Chinese and French each staffed with nationals from their respective countries. For my first try I dined at Dim Joy, a dim sum restaurant with a small but delicious menu. I highly recommend it.

The Ginza Mitsukoshi was staffed with many a friendly person waiting to answer questions, point directions and overall assist in every aspect of your shopping and eating experience. The floor space which they said would be 55% larger indeed was with wide aisles reminiscent of American department stores.

The newly renovated Mitsukoshi Ginza definitely hit the mark with their brand and restaurant selections, friendly and open environment and more, offering something for everyone including families (even offering on-site baby sitters). Their attempt at reclaiming customers, increasing sales and returning to relevancy is off to a successful start. Opening day numbers at Mitsukoshi Ginza were *180,000 visitors and over 70 million yen in sales – not bad for an opening day, especially in this economy.

Data *Still confirming

Can the Chinese Holiday Shopper Save Japan's Luxury Sector?

The economic recovery in Japan has been a slow one, and nowhere can that be seen more than in the luxury sector. After growth in the first-half of the year, many companies are already reporting declining sales for the second-half and revising their forecasts for 2010. The one bright spot of the luxury industry in Japan has been in the influx of Chinese tourists. With the easing of visa regulations in July more Chinese tourists are visiting Japan and in turn more retailers in Japan are making it easier for them to shop and spend their money i.e., accepting China UnionPay card, having multilingual staff, providing maps, brochures and other information in Chinese, having partnerships with travel agencies, etc…these new adoptions by retailers have already shown benefits via an increase in Chinese customers and an increase in the bottom line – sales – with the *average Chinese tourist spending about 280,000 yen during their visit. Out of that 280,000 yen 25% is spent on trendy fashion items and cosmetics, while 20% is spent on electronics i.e., digital cameras. Cartier is one of the luxury brands to see an increase in sales from Chinese tourists, experiencing a **one-hundred percent increase in the past three years accounting for five percent of their total Japan sales. As other foreign luxury brands like Cartier experience increasing sales from Chinese tourists they are also expanding and opening new stores in China. One worry regarding the foreign brands refocusing their growth on China away from Japan is that the Chinese tourists will stop buying their luxury goods in Japan, though that need not be the case. Luxury brands already have a strong presence in China and most Chinese prefer to buy their luxury brands in Japan as it is a status symbol as well there is a lesser chance someone else will have the same product. But still, with so many luxury brands accelerating their openings in China one has to wonder, will it have an adverse impact on sales in Japan? And if so, when and how will retailers in Japan adapt?

Data * Nikkei Institute of Industry and Regional Economy, ** Cartier SA

Lumine taking over the Yurakucho Seibu Building?

With the closing of the Yurakucho Seibu building at the end of this year there has been a lot of wondering and speculation of who will take over this prime retail space.

Currently Lumine Co. the shopping mall operator (currently operation 13 shopping malls) is in negotiations to take over and if they get it, move into the space with plans on opening in the fall of 2011.

Other potential tenants mentioned are Aeon Co. and Yamada Denki among others, with a decision on who will get the space to be made soon this year.

Data: Japan Department Store Association

Richard Chai for Original Penguin

Richard Chai, who is currently showing his collection in New York, is launching a new co-branded men’s line along with Original Penguin. The line will be called Richard Chai for Original Penguin and will debut this week also at the New York collections. Original Penguin an American lifestyle brand, started in 1955 specializes in RTW, footwear, and eyewear. The new collection will be for spring 2011 and have a total of nine styles including long and short sleeved polos and cardigans. Each of the styles will be available in a variety of fabrics and colors and will be priced at a premium. Expanding for the fall 2011 collection there will be up to 30 styles including polos, sweaters, shirts, pants and outerwear. Richard Chai’s own collection line is currently carried in Isetan Men’s and rumor has it (I will confirm soon) that the new Richard Chai for Original Penguin will be carried at the newly renovated Ginza Mitsukoshi as part of their new “New York Runway” section.

The Second Coming of Ginza

A funny thing happened in Ginza in 2008 after the burst of the luxury bubble in Japan – luxury department stores and retailers who one reigned supreme were quickly losing customers to outlets, shopping centers and fast-fashion retailers who were able to adjust to the changing tastes and priorities of the Japanese consumer. While the outlets and shopping centers were focused in the suburbs and country side, the fast-fashion retailers quickly realized their target demographic was located closer to and in the city – and what better place to be than Ginza, the luxury-center of fashion in Japan. Over the next several years what took place was a changing of the luxury landscape in Ginza, with Zara already in place several other brands starting opening H&M, Uniqlo, and finally Forever 21 – quickly changing the façade and customers from older housewives to young cost-conscious Japanese and tourists. As the department stores and luxury retailers took the brunt of the losses (customers, sales and sales per customer), the fast-fashion retailers thrived. As the luxury retailers before them the fast-fashion retailers opened many stores quickly and amassed huge inventories which would have to be sold off at even more of a discount. While the fast-fashion retailers were over-expanding the economy (at least on the surface) was starting to make a small and slow comeback with luxury retailers beginning to increase inventory and departments stores while not at all increasing sales, customers or sales per customer (except for Isetan) beginning to become creative in the strategies and takes risks, i.e., Forever 21 & Matsuzakaya and Takashimaya & Uniqlo. These partnerships were beneficial to both; increasing customers at department stores and increasing sales at the fast-fashion retailers with some run-off going to the department stores. With some minor successes the department stores are starting to do more. At first it was just renovations; just new window dressing in the same old window but then department stores started to realize their customers were getting older and would continue to so they became implementing strategies to lure new and younger customers. This is where we are now, with a spate of renovations throughout Ginza. First Mitsukoshi which will reopen their mainstay store and a new annex this Saturday and then at the end of this year Sogo & Seibu will close their Yurakucho Seibu store with Lumine opening up in its place with United Arrows as their main tenant – a beacon for young men & women in their 20s and 30s. Not too be left out and still feeling good after their success with Forever 21, Matsuzakaya next month will open a section in their department store just for women in their 20s.

Will these new strategies help lure new and younger customers to department stores and help revitalize Ginza or it will be as we have seen so often in the past just short-term expensive window dressing with no long term results?

Data: Japan Department Store Association

Can Mitsukoshi Change the Fortunes of Japan's Department Store Industry?

This Saturday Ginza Mitsukoshi will reopen their Ginza store after months of renovation (including ten days closed) as well down the street they will open their new annex. Although exact numbers are not available the renovation may have cost Isetan Mitsukoshi Holdings in the area of *160 billion yen and with that investment they are forecasting first year sales of 36 billion yen.

The renovated 12 floor Mitsukoshi will boast **55% more sales space including 50% more women’s RTW brands and 30% more ACC and SLG brands mixing both high-end and luxury merchandise including Tory Burch, Kate Spade and DVF mixed in with Celine, Chloe, Givenchy, Gucci, Tod’s and more, as well the new Mitsukoshi annex focusing on men’s brands will carry Tom Ford, Salvatore Ferragamo, and Tod’s.

Mitsukoshi is betting their new strategy of mixing high-end brands with luxury brands and focusing on high customer service will serve them better than their competitors’ recent strategies.

As I have written before most department store strategies focus on only short-term solutions to a much larger problem – which can be seen in their same-store-sales’ results; monthly and yearly. Only time will tell if Mitsukoshi’s 160 billion yen investment will pay off in sales and with it a return to relevancy.

Data: *Isetan Mitsukoshi Holdings 2008 Financials, **WWD, Japan Department Store Association

Louis Vuitton's Omotesando Renewal

Currently those visiting the Louis Vuitton flagship in Omotesando will be greeted by a banana-yellow facade with a drawing of the Eiffel Tower (not Tokyo Tower) and if you look in up in the middle you will also see a picture of LV's trademark luggage piled high to look like the Eiffel Tower. The new interior which can be seen at the reopening on 23 November will also be based and influenced by LV's trademark luggage displaying trunks, ACC, SLG and more throughout the store. The newly renovated LV store will also have a floor dedicated to men including a bar and lounge.

The lounge and bar will be a good enough reason to stop by, and who knows maybe you will even take home an LV purchase.

Do you think it's too hot for Heattech?

Fast Retailing doesn't. 

That's why they introduced their Heattech line of apparel into Uniqlo stores in Japan early this year; to beat the rush and to gain more sales through a longer product sale cycle.  Too bad the weather has been in the mid-30's most of the summer and will continue to be for the next several weeks, so no one is thinking about fall/winter apparel now - not convinced?  Consider Uniqlo's negative same-store-comps for August -9.3% a huge decline from a company that was positive double-digit growth every month only one year ago.  Although still a strong and growing brand it will take more than opening additional stores and discounting already inexpensive merchandise to help Uniqlo recover from five months of same-store-sale declines - not just merchandise reflecting the current economic climate but also the current weather climate. 

Asics Expanding Onitsuka Tiger

Kansai-based Asics Corp. plans to expand their Onitsuka Tiger streetwear doors in Japan from ten to thirty locations by the end of 2012. Targeting department stores in major cities from this September Asics will be begin selling Onitsuka Tiger apparel, shoes and accessories at Mitsukoshi Ginza, Fujii Daimaru in Kyoto, Hanyku Osaka as well they will open a new shop in Haneda airport next month – each store spanning 30-70sqm.


With these new store openings and a collaboration planned with United Arrows Asics forecasts an increase of 20% in Japan sales by end of fiscal year 2011.

tokyofashndaily now@Twitter

Starting now please follow Tokyo Fashion Daily on Twitter at tokyofashndaily and stay up to the trends on Japan's retail fashion news and reviews. 

Barneys New York to open in Fukuoka

Following the sucess of their recently opened store in Kobe, Barneys has announced it will open their next store in Fukuoka in the fall of 2011.  The store which will be 2,600sqm will be spread over four floors and open in the shopping and entertainment area of Tenjin.  This will be Barneys' fifth store in Japan with the others in Ginza, Shinjuku, Yokohama, and Kobe. 

Does Japan really need another department store let alone another luxury department store? 

ZARA

With department stores still losing customers and sales to specialty shops, Sogo & Seibu Co. plan on following the lead of Matsuzakaya and Takeshimaya by inviting a specialty store into their department store. As the fast-fashion trend is slowly abating due to a girth of inventory and oversaturation, one fast-fashion brand is still commanding consistently high customers and sales - Zara part of the Spanish Inditex Group which first entered Japan in 1997, is able to stock and refresh a wide merchandise assortment of the latest trends with as little as two-week lead time. This means Zara is positioned well in terms of a slightly more, trendy consumer as well they are not stuck with excess inventory as each store manager buys directly from Spain for their own store.

On Wednesday 22 September Sogo & Seibu Co. will be the third department store chain in Japan to have a fast-fashion brand when Zara begins operations inside Seibu’s Yokohama department store. Zara will have about 750sqm of floor space and be one of the largest stores inside a department store. With the opening of Zara inside the Yokohama Seibu, Sogo & Seibu hope to recapture lost customers and sales as well as improve efficiency and return to relevancy in the retail market.

With Forever 21’s success in Ginza Matsuzakaya and Uniqlo in Takeshimaya, do you think the trend of fast-fashion brands opening in department stores will continue?

Uniqlo's Same-Store Sales Down in August

In August for the fifth time this year Uniqlo’s same-store sales declined. This time the decline was steep as sales dropped 9.3%, while the number of customers fell 0.4% with sales per customer also dropping 9%.

The sales decrease was attributed to weak sales of Fall/Winter merchandise. I guess early introduction of the Heattech line into stores in August was not a good idea after all.

* Data Fast Retaling Co.

Isetan’s Enjoys 2nd Straight Month of Sales Increases – Not A Recovery

Isetan Co. enjoyed a second straight month of increased sales for same-store-comps for August. The sales increase of 0.1% was attributed to parasols, foods sales for obon and other summer items. With the summer temperatures staying in the thirties for most of August, and most of the summer Fall/Winter apparel is not selling (another argument why retailers should sell apparel for the current season), as well other big-ticket items not selling well, i.e., luxury timepieces , jewelry and other items priced over 10 million yen. While Isetan did enjoy a slight increase in August sales, the other big three department stores once again experienced a decrease. Sales dived a huge 16% at Mitsukoshi (due to renovation of their Ginza store), while sales at Takashimaya decreased 3% and H20 Retailing’s Hankyu saw a 2.3% decline in sales.

Isetan’s two consecutive months of increased sales can hardly be considered a recovery as most of the increased sales came from their food sales for the obon holiday, a 4.8% increase, while other big-ticket items barely sold or did not sell at all, as well the other big three department stores continue to experience consecutive months of declining sales. Until consumer start spending a recovery will far off in the future…maybe 2012?

Tiffany Sales Rise in Japan

Tiffany & Co. reported a Q2 increase in sales of 4% in Japan to a little less than 10 billion yen, though globally Tiffany fell short in earnings for Q2. With Q3 sales already in double-digit growth the second half of the year is one of guarded optimism

Fast Retailing's Fast-Shoes

With several different shoe brands being sold through several different retail brand doors it was no wonder Fast Retailing was unable to build a consistent shoe brand.  And while Fast Retailing’s fast-fashion clothing brands became successful their shoe brands languished on the shelves – but no more – as a result of the weak branding and poor sales of their shoe brands Fast Retailing has decided to merge most of their shoe brands under the Candish name and sell them through the 90 Candish stores Japan-wide. Not wanting to merge all of their shoe brands, Fast Retailing has decided to keep Uniqlo shoes in the Uniqlo stores, though not any Uniqlo stores, they will only be sold in 93 casual wear Uniqlo stores. With the merging of these shoe brands and building brand consistency Fast Retailing expects at least 100 billion yen in shoe sales in the near future.