Fashion
Japanese retailer Aeon has seen its revenue edged up 0.9 per cent in the latest half year, but its results vary greatly between formats.
Total sales reached JPY 4,112 billion (US$39.2 billion), for the six months to August 31, while operating profit improved by a meagre 0.1 per cent to JPY72.4 billion (US$0.69 billion).
In an analysis of the company’s performance, retail research house IGD observed stronger performances by Aeon’s convenience store business and its pharmacy interests than in its general merchandise and supermarket businesses.
Aeon’s convenience store business reported a 6.1 per cent increase in operating revenues of JPY190.6 billion (US$1.8 billion), up 7 per cent year-on-year for the first half.
“The group’s Ministop and My Basket operations performed strong thanks to the enhanced merchandise selection and improved services,” says IGD.
The drugstore and pharmacy business grew revenues by 5.8 per cent, with the Welcia banner increasing its number of 24-hour stores to enhance customer convenience, driving steady growth in same-store sales.
Conversely, the supermarket and discount store business posted a 7 per cent decline in revenue to JPY1,448.5 billion (US$13.8 billion). This was mainly due to the impact of the transfer of Daiei’s stores.
And its general merchandise store business suffered a significant loss, amid weak consumer spending in Japan.
Outside Japan, Aeon reported operating revenue of JPY205.3 billion (US$1.96 billion), down 5.4 per cent year-on-year. Aeon China and Hong Kong achieved an improvement after the group completed refurbishment of its flagship stores, which helped strengthen the business foundation in China and bolster earrings. In the reporting period, the group also expanded further in Asean markets, opening a new stores in Malaysia and Vietnam.
