Aeon Co Ltd (TSE:8267)

Biomass Magazine  Oct 13  Comment 
Aeon Energy Solutions Inc. announces that Western Wood Development LLC, a Northern California-based company, has fully committed to using Konza Renewable Fuel as the base torrefaction technology for its torrefied pellet product.
Benzinga  Apr 7  Comment 
IMAX Corporation (USA) (NYSE: IMAX) said it aligned with AEON Entertainment Co. Ltd for an IMAX theatre to be stationed at the Japanese firm's multiplex. The Japanese partner has AEON mall in Odaka in Nagoya of Japan, according to the company....  Nov 19  Comment 
WASHINGTON (dpa-AFX) - Authentidate Holding Corp. (ADAT) and Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories said they have entered into a definitive merger agreement under which privately-held AEON will merge with a...
Benzinga  Sep 17  Comment 
Authentidate Holding Corp. (Nasdaq: ADAT), has partnered with AEON Clinical Laboratories to nationally launch Cancer Detect Profile®, a 38-gene cancer genetic test coupled with telehealth-based genetic counseling for the prescribing physicians....
Benzinga  Aug 25  Comment 
Authentidate Holding Corp. (Nasdaq: ADAT) and Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories, an expanding clinical laboratory based in Gainesville, GA ("AEON"), today announced that the companies have entered into a...
Japan Today  Jul 7  Comment 
Japan's Aeon Co Ltd is interested in buying the Malaysian operations of Britain's Tesco PLC, valued at about $1.4 billion, people familiar with the matter told Reuters. Japan's largest retailer has been venturing into Southeast Asia where...
TechCrunch  Jun 20  Comment 
 Take a quick look, a sneak peek, into our not-so-distant future, courtesy of the great science-fiction writer Peter Watts(1), who writes in Aeon magazine: “You already know that we can run machines with our brainwaves. That’s been old news...
Japan Today  Apr 29  Comment 
On April 15, representatives from Gifu Prefecture’s Chubu Gakuin University and its affixed junior college reached an agreement with Japan’s major retailer Aeon that will allow university students to earn credits while working part-time in...


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.

Company Overview

News Updates

  • Aeon projects a net profit despite asset retirement obligations and posting of earthquake-related

extraordinary losses (initial guidance projected these at ¥20 bn and ¥30 bn respectively).[1]

The following is an overview of Aeon’s business segments[2]

  • GMS and other retail store operations (70% of 2010 revenue): Core services include 468 Aeon general stores, 732 supermarkets, discount stores, and “strategic small size” stores such as convenience stores, small supermarkets, and food services. Brands include Ministop, My Basket, and Origin Toshu.
  • Service and other operations (18% of 2010 revenue): Core services include financial services, building maintenance, entertainment, and business supply.
  • SC development operations (3% of 2010 revenue): Shopping center development operations develop and manage large-scale shopping malls across Japan. This unit has started to develop malls in China, with the first large mall opening in Beijing in 2008.
  • Specialty store operations (9% of 2010 revenue): Specialty stores operate in malls and stand-alone shops, catering to specific customer lifestyles. In addition, this segment includes drugstores and pharmacies.

Trends and Forces

Expectation of Future Tax Hikes and Higher Electricity Bills Drags Spending

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.[3]

Japanese Slowdown from 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.[4]


Aeon competes in the Japanese consumer goods retail space in Japan, as well as several other countries. Selected competitors include:

  • Daiei Inc (TYO:8263) owns 2000 stores including department stores, supermarkets, discount stores, restaurants, and hotels.
  • Seven & I Holdings (BER:S6M) engages in the retail business in Japan and North America, operating convenience stores, supermarkets, restaurants, and financial services.
  • UNY Co (TSE:8270) operates in the retail, financial, and real estate business in Japan and Hong Kong.
  • Izumi CO LTD (TYO:8273) operates 85 supermarkets and stores in Chugoku, Kyushu, and other regions in Japan.


  1. Goldman Sachs analyst report, 20 June 2011
  2. Aeon 2010 Annual report
  3. JP Morgan analyst report, 27 May 2011
  4. Daiwa Capital Markets, “Future slowdown in personal consumption a concern”
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