ABC-Mart Runs Ahead of the Competition

With same-store-sales up 5% for the first half of the fiscal year (March - August), ABC-Mart experienced an 8% increase in group operating profit to 14 billion yen, surpassing their forecast by .6 million yen.

Sales increased due to the opening of 52 new stores during the first half of the year and the popularity of expensive (over 10,000) Japanese-brand sneakers, which experienced a 4% sales increase.

ABC-Mart plans on opening another 80 new stores during the second half of the year including overseas which currently accounts for over 10% of sales. 

Fun Fact: Opening in June of 1985 ABC-Mart celebrated their 25 anniversary last year.

Information ABC-Mart & Nikkei

Uniqlo Innovation Project

As Fast Retailing expands its franchise Uniqlo brand it is also becoming more innovative – so much in fact they have launched a new line; Uniqlo Innovation Project or IPJ.

The new line which launched in September is a collection of high-performance apparel designed by fashion director Nicola Formichetti.  Merchandise will include parkas with oversized pockets, jackets which can be unzipped or ripped open as well as their heat-keeping, antibacterial t-shirts with UV-jamming, that are also windproof, breathable, water resistant, stretchy and dry.  That is a lot of functions for one product line.

Viewing the collection one cannot help but see some influences from Jil Sander and her + J collections.

Information Fast Retailing Co. & WWD

Is Warm-Biz for You?

With the huge popularity and commercial success of “cool-biz” this past summer are you ready for “warm-biz” this fall/winter?

Cool-biz, heavily backed and promoted by the Japanese government and corporations as well as apparel manufacturers and retailers was highly successful for several reasons; the sweltering heat and humidity of the Japanese summer coupled with the potential for power outages and electricity cuts due to the earthquake and tsunami.   

Warm-biz, which found its roots in 2005, has not really caught on – yet.  And though the Japanese government has yet to begin promoting warm-biz for the coming fall/winter months, corporations still seeking energy savings and apparel manufacturers and retailers (especially department stores) seeking sales have already begun to promote warm-biz to their employees and customers. 

To see the direction warm-biz sales are heading look no further than Japanese denim and casual apparel company Edwin, which is already forecasting an increase of 60% in sales of casual pants for men, while Onward Kashiyama is predicting double-digit growth for men’s casual pants.  In terms of tops, Fabricant, license hold for Lacoste in Japan has already seen sales of long sleeve polo shirts increase 10% from the same time last year. 

Is this the start of a trend?  Is it supply meeting demand or supply driving demand? 

Diego, an office worker in Ginza I spoke to this morning told me he would not embrace warm-biz as he feels for his line of work in sales it is too casual and he would not feel comfortable attending a meeting with clients dressed in chinos and turtlenecks.   

Will other male office workers feel the same?  And what do their female co-workers think? 

Aki, an offer worker in Ginza told me she would like to see some of her male coworkers dressed more causally in the winter though there has to be a line; no chinos and no grandpa vests! 

Do you hear that Japanese men – no grandpa vests. 

Information Fabricant, Onward Kashiyama, Edwin Co. & Nikkei

Princess Grace de Monaco Collection by Montblanc

Beginning in November Montblanc of the Richemont Group will launch the Princess Grace de Monaco collection in Montblanc boutiques and select retailers in Japan and the rest of the world.

The collection will consist of writing instruments, luxury jewelry and timepieces, with prices starting at approximately 70,000 for a pen up to 800,000 yen for the fine jewelry.

Named after the famous Princess Grace the collection’s theme is centered on the Grace de Monaco pink rose, which shows up in many of the jewelry pieces including necklaces, bracelets and diamonds.

Fun Fact: The Grace de Monaco pink rose was created in 1956 in honor of Grace Kelly’s marriage to Prince Rainier III.

Information WWD and Montblanc

Horiyoshi III Inks a Big Hire

Japanese brand Horiyoshi the Third hired big when they went out looking for their new COO.  The hiring of Richard Johnson, Head Buyer at Harvey Nichols’ comes at a good time as Horiyoshi the Third plans on expanding their current product line from t-shirts, knitwear and scarves to high-end denim.  The expansion of their product line for the fall/winter 2012 collections also coincides with the opening of their first stand alone store on Connaught Street in London next month.

Fun Fact: Horiyoshi the Third is a Japanese tattoo-inspired clothing brand based off of the designs of the “Irezumi” by Yoshihito Nakano, only the second tattoo artist to be granted the honorific title of “Horiyoshi”

Information WWD and Horiyoshi the Third

Jeans...Mate

Even before September is over, casual apparel retailer Jeans Mate has already reported a steep drop in same-store-sales for the month.  Declining 17.8% on the year in September, Jeans Mate reported slow sales of fall/winter clothing.  And in other news the weather in September has been mostly hot and humid.

Information Jeans Mate Corp.

Japan Department Store Sales Down in August

For the second consecutive month in August department store sales in Japan fell 1.7%, compared to one year earlier.  Although sales of jewelry, art and other high-priced items increased, once again it was food that was the biggest seller. 

Overall Japan department store sales finished at 425.8 billion yen as cool biz apparel sales cooled off and the weather was still too hot to buy the winter coats and sweaters displayed in the windows.

Can we expect better sales in September?

Information Japan Department Stores Association

Loewe, "The Masters of Leather"

From 21 to 27 September, Spanish-leather goods brand Loewe will install a window showcase taking up 13 windows at Isetan Shinjuku.

The showcase telling the story of Loewe's history will lead up to the launch of the October book release of “The Masters of Leather,” an illustrated book celebrating the house’s craftsmanship, which will be available worldwide in a limited release of 500 copies - the binding of the book - Loewe leather of course.

Check out the 13 window display from tomorrow until next Tuesday at Shinjuku Isetan.

Information WWD.com

アーヴィング・ペンと三宅一生 Visual Dialogue

Starting today and running until 8 April 2012 – the “Irving Penn and Issey Miyake: Visual Dialogue” will show at 21 21 Design Site.   

History:

The pair first began to work together in 1987 when Issey Miyake would send his collections to Irving Penn in New York to photograph.  The collaboration lasted until 1999 and produced 250 photos which 73 were made into promotional posters for Issey Miyake’s collections. 

This one room exhibition will showcase the collaborative work between Issey Miyake and Irving Penn spanning over the two decades they partnered together.   

Check it out at 21 21 Design Sight. 

Information WWD and 21 21 Design Site

Opening Today...

Today at Ikebukuro Tobu, Fast Retailing will open their largest Uniqlo store in Tokyo.  

At 3,300sqm, this Uniqlo store will occupy the ninth & tenth floor of Tobu department store and will be four times larger than the previous largest Uniqlo store in Tokyo. 

To celebrate the Uniqlo brand Fast Retailing has installed 105cm high monitors displaying images of the Uniqlo brand.

The Tobu Ikebukuro Uniqlo will carry the full product line for women, men and children.

Information Fast Retailing Co. & Nikkei

Tadashi Yanai’s Grand Plans for Fast Retailing

On their way to generate sales of 5 trillion yen by the year 2020, Fast Retailing has a lot of work to do. 

Currently with over 800 stores in Japan and over 150 stores overseas Uniqlo plans on opening up-to another 300 stores in Japan and overseas per year to achieve this astronomical sales number; with goals of over 1000 stores in Japan by 2020 and 100 stores in Asia by the end of 2012.

The first stop is to achieve 1.5 trillion yen in sales by 2015 and to be the largest (in terms of sales) apparel brand in Asia, the rest will come after.

Fun Fact: If Fast Retailing can achieve 5 billion yen in sales they will surpass the GAP, H&M, and Inditex to be the largest (in terms of sales) apparel manufacturer and retailer globally.

Information Fast Retailing Co.

What’s Cheaper than Uniqlo?

g.u.
In Fast Retailing’s quest for global apparel domination they plan on opening upto 50 new g.u. stores this fiscal year. Each store will be over 50% bigger than current g.u. stores and will carry trendy and fashionable clothing at unbelievably low prices; think 500 to 1,000yen for apparel.

Fast Retailing forecasts 50 billion yen in sales for this fiscal year – over double from last year.

Fun Fact: As fast Retailing aims to dominate the fast-fashion and low-priced clothing market they will soon have a competitor in GAP’s Old Navy which will open in Japan next year.

Information Fast Retailing Co. & Nikkei

Men’s Retailers Fall in August

With August sales down for most retailers, men’s retailers were particularly hit hard.

Four of the top men’s retailers reported a drop in same-store-sales for August. Leading the way was Haruyama Trading Co. with a 12.1% drop in sales, followed by Konaka Trading Co. with a 9.5% decrease. After that Aoki Holding (of Aoki Men’s) saw August sales drop 8.8% and rounding the month out was Aoyama Trading Co. (the trading company bringing you American Eagle) decreasing 8.9%.

August is traditionally not a strong month for fashion retailers as the sale season is over and the merchandise is transitioning from summer to fall.

Information Nikkei

The Future of Japan’s Department Stores

Facing an exodus of young shoppers to boutiques, specialty retailers and the Internet, Japan’s department stores are turning grey.

Currently about 40-50% of customers at Japan’s department stores are over 50 years old with 60 year olds making up 30% of those customers.

Mirroring the overall population in Japan, customers at department stores in Japan are getting older.  Is this a negative reality or an opportunity in disguise as these older customers are spending more money than the younger customers.

The Sogo store in Kashiwa, Chiba Prefecture reports that their 60-year-old customers spend 40% more money than their younger counterparts.  This is the main reason why Kashiwa Sogo is downsizing their merchandise for the young and expanding their merchandise for the older, heavier spending customer.  Yesterday Kashiwa Sogo opened up an area of 2,600sqm floor space dedicated to women’s wear for women 60 years old and up.

If this new strategy proves profitable Sogo & Seibu will similarly renovate their other department stores.   And when this happens it is only a matter of time before the other department stores follow suit.

Information and Data Sogo & Seibu, Seven & iHoldings & Nikkei

A First for Sacai

This Saturday 10 September, Japanese fashion brand Sacai will open their first ever freestanding store – in Japan.

The Tokyo flagship store will be located in Aoyama and cover around 3,015sqf spanning three floors, with the first two floors making up sales space while the third floor will be a showroom for press and buyers.

Sacai, founded by Chitose Abe has been a fashion staple for Japanese women for over ten years.

Fun Fact: Chitose Abe develops all of her own fabrics for Sacai.

Information WWD

Uniqlo Sales Down In August

For the first time in three months Fast Retailing reported a decrease in same-store sales for its Uniqlo brand.

Down 9.4% for the month of August sales in the prior month of July experienced an 11.2% increase.  Along with a drop in same-store sales for August Uniqlo also experienced a drop of 10.6% in same-store customer traffic.

Apparently Fast Retailing did not learn from last August that rolling out their Heattech product line while the weather is still hot and humid might not produce the strongest sales.

Information Fast Retailing Co.

Takashimaya Down in August

August same-store comparative sales at Takashimaya department store fell 0.9% compare to last year. This marks their first same-store-sales decrease in three months.

Due to the decrease in same-store-sales Takashimaya’s stock price also decreased.

As we wait for other retailers to release their August same-store comps, we can only hope the sales decrease at Takashimaya is not the start of a trend.

Information Takashimaya & Nikkei

G.U.

In an effort to double their sales in 2011, Fast Retailing’s G.U. subsidiary plans on expanding their product line to almost 400 products and lowering their prices…as low as 590 yen for some products including their U-neck t-shirts which keep the wearer warm while absorbing moisture.

G.U.’s U-neck t-shirt will compete with Uniqlo’s Heattech. G.U. forecasts sales of 5 million pieces this year, while Uniqlo forecasts sales of Heattech to top 100 million pieces this year.

.Information Fast Retailing Co. & Nikkei