Aeon Co. (TSE:8267) operates general merchandise stores, supermarkets, convenience stores, and department stores in Japan, North America, and Asia. Aeon’s specialty stores sell retail women's apparel, casual wear items, cosmetics, toiletries, and shoes. The company also offers services including shopping center development and rental, credit card operations, consumer financing, amusement facility operations, and restaurants and store maintenance. Aeon is headquartered in Chiba-shi, Japan.
extraordinary losses (initial guidance projected these at ¥20 bn and ¥30 bn respectively).
The following is an overview of Aeon’s business segments
The Japanese government is considering a few tax measures as means of financing post-quake reconstruction. These measures include (i) a 10% increase in income tax for 3-5 years (yielding an ¥1.3 trillion annually), (ii) a modest increase in consumption tax (a 2-3% increase from FY2012 onward for two-three years only; each 1% increase would raise around ¥2.5 trillion), and (iii) a possible increase in electricity charges related to the nuclear power plant problems and a higher burden for the public. On the other hand, recovery may continue as aggregate retail same-store sales in Japan recovered to 1.4% year-over-year growth in April from a 3.5% decline in March following the earthquake.
Consumers may continue to rein in spending if the Japanese economy remains lackluster for the time being. Consumer spending could remain weak for a longer period in light of deteriorating employment and income coupled with rapid cooling of consumer sentiment. Sales of discretionary goods will likely be sluggish as this trend continues. Some analysts see consumer sentiment as unlikely to recover until 2012, given the nuclear power plant issue and political uncertainty.
Aeon competes in the Japanese consumer goods retail space in Japan, as well as several other countries. Selected competitors include: