Overview and Forecast
Promoting growth by opening new malls and breathing new life into existing malls in line with regional characteristics.
We contribute to the revitalization of local communities in many parts of Japan, leveraging our overwhelming track record in malls and the retail expertise we have developed in a mature domestic market, one marked by the ongoing trends of an aging population, a declining birth rate, and a population return to downtown areas. We seek to explore new demand and create new markets.
Market Trends
Malls are entering the era of selection, driven by the maturing of the retail market.
The mall industry accounts for 22.1% of all retail sales, suggesting that there is considerable scope for growth compared to the United States, a developed market for malls, where the mall industry has a 55.5% market share. However, because the City Planning Act included regulations on the opening of large stores, the opening of large new malls has been on the decline, and the presence of AEON MALL, whose malls already account for half of all large malls in Japan, is becoming increasingly significant.
In addition, the population or seniors continues to rise, even as the overall population in Japan is in decline. However, the decline of the population in the three major metropolitan areas is relatively small, implying that there is a trend that can be labeled as a return to downtown areas. There is a need to explore new domestic demand, focusing on the aforementioned trends.
| 2005 | 2015 | |
|---|---|---|
| Malls | 19.8% | ↑ 22.1% |
| Department stores | 5.8% | ↓ 4.4% |
| Chain stores | 10.5% | ↓ 9.4% |
*Source: The Current Survey of Commerce by the Ministry of Economy, Trade and Industry and data from the Japan Council of Shopping Centers, the Japan Department Stores Association, and the Japan Chain Stores Association
| 2011 | 2013 | 2015 | |
|---|---|---|---|
| Under 40 | 554 | 558 | 608 |
| 40 - 49 | 1,118 | 1,049 | 1,024 |
| 50 - 59 | 1,588 | 1,595 | 1,751 |
| 60 - 69 | 2,363 | 2,385 | 2,402 |
| 70 or older | 2,211 | 2,385 | 2,389 |
| 2015 | 2025 | 2035 | |
|---|---|---|---|
| Total population | 12,659 | 12,065 | 11,212 |
| 65 or older | 3,395 （26.8％） |
3,657 （30.3％） |
3,740 （33.4％） |
| 0 - 14 | 1,582 （12.5％） |
1,324 （11.0％） |
1,128 （10.1％） |
| 2015 | 2025 | 2035 | |
|---|---|---|---|
| Total population | 12,659 | 12,065 （-4.7％） |
11,212 （-11.4％） |
| The three major metropolitan areas | 6,792 | 6,586 （-3.0％） |
6,207 （-8.6％） |
| Other than the three major metropolitan areas | 5,866 | 5,479 （-6.6％） |
5,004 （-14.7％） |
*Three major metropolitan areas: The Tokyo metropolitan area, the Chukyo area, and the Kinki area
| 2000 or earlier | 2001-2005 | 2006-2010 | 2011-2015 | 2016-2020 (forecast) | |
|---|---|---|---|---|---|
| Number of malls with 40,000m2 or larger | 39 | 41 | 62 | 34 | Approx. 35 |
| AEON Group | 16 | 28 | 34 | 19 | Approx. 25 |
| Competitors | 23 | 13 | 28 | 15 | Approx. 10 |
* Survey conducted by AEON MALL.
Strengths of AEON MALL
Overwhelming track record and retail expertise cultivated as strengths
AEON MALL, which boasts Japan’s strongest track record in developing and operating large commercial facilities, has an overwhelming advantage in the present mall market in Japan, where its planning capabilities in revitalizing local communities is put to the test. AEON MALL participates in the regional development of local governments, such as land rezoning projects. As a developer in Japan’s largest retail distribution group, the greatest strength underlying our strong track record is our business know-how rooted in a retailer’s perspective, which we have cultivated in line with our Customers First philosophy, and our strong partnership with tenant companies in the AEON Association Shops Committee, the largest body of its kind in Japan.
Leveraging these strengths, we will pursue new forms of innovation in the retail market. This market is now mature, so we need to explore new demand and create new markets.
Overview of Fiscal 2015
Development of new mallsOpened five new distinctive malls such as AEON MALL Okinawa Rycom.
To expand new facilities in Japan, we opened five malls in fiscal 2015. All are distinctive concept malls in line with regional and location-specific characteristics. AEON MALL Okinawa Rycom provides culture and entertainment features by which visitors are able to experience an Okinawan atmosphere. It has approximately 60 restaurants offering the largest selection of local and foreign foods, and provides services for inbound tourism (foreign tourists visiting Japan) that are more enhanced than other existing malls to meet local needs for attracting tourists. AEON MALL Tokoname, which is located near Chubu Centrair International Airport, also conveys local charm by enhancing multilingual services for foreign tourists and holding events that highlight local specialties.
| Name | Location | Features |
|---|---|---|
| AEON MALL Asahikawa Ekimae | Hokkaido | Provides a tourism promotion function and proposes lifestyles, taking advantage of its location directly connected to the station. |
| AEON MALL Okinawa Rycom | Okinawa Prefecture | Provides an entertainment function by which visitors are able to experience an Okinawan experience, and establishes a wide variety of restaurants. |
| AEON MALL Tonami | Toyama Prefecture | Meets the needs of three-generation families, with “AEON Style” as the core. |
| AEON MALL Shijonawate | Osaka Prefecture | Enhances specialty stores based on the concept of creating “fun for grownups,” in addition to providing an infrastructure function. |
| AEON MALL Tokoname | Aichi Prefecture | Sells regional characteristics through events and other measures. Seeks to become a full-fledged entertainment mall. |
Existing mallsTwelve malls were renovated, including the expansion of floors, by promoting large-scale renovations.
In fiscal 2015, we replaced tenants significantly at 11 malls and renovated AEON MALL Chikushino, including the expansion of floors. All renovated malls continue to perform well. At AEON Lake Town, sales at specialty stores showed double-digit growth as a result of upgrading 70% of 710 stores and increasing circulation within the mall. At AEON MALL Chikushino, 182 of the 210 stores were upgraded through the introduction of new tenants and the relocation and remodeling of existing tenants, causing sales at specialty stores to increase by as much as 1.5 times from the previous year. As a result of these efforts, operating income at existing malls increased to 102.1% of the level a year ago in fiscal 2015.
| Name | Location | Tenants | New Tenants |
|---|---|---|---|
| AEON MALL Takaoka | Toyama Prefecture | 130 | 49 |
| AEON MALL Itami | Hyogo Prefecture | 150 | 61 |
| AEON MALL Kusatsu | Shiga Prefecture | 190 | 131 |
| AEON MALL Miyakonojo Ekimae | Miyazaki Prefecture | 100 | 41 |
| AEON MALL Hiroshima Fuchu | Hiroshima Prefecture | 200 | 22 |
| AEON MALL Hiroshima Gion | Hiroshima Prefecture | 130 | 87 |
| mozo wonder city | Aichi Prefecture | 230 | 163 |
| AEON MALL Morioka | Iwate Prefecture | 120 | 46 |
| AEON MALL Chiba New Town | Chiba Prefecture | 180 | 69 |
| AEON Lake Town | Saitama Prefecture | 710 | 509 |
| AEON MALL Kashihara | Nara Prefecture | 230 | 116 |
| AEON MALL Chikushino | Fukuoka Prefecture | 210 | 182 |
Forecast for Fiscal 2016
Development of new mallsPlanning to open six new malls, including the acceptance of entrusted PM and the regeneration of facilities in the Group.
In fiscal 2016, we plan to open four malls including the acceptance of entrusted property management (PM). We will continue to promote the development of concept malls, taking advantage of regional characteristics. One example of this is AEON MALL Imabari New City, which plans to enhance sports shops to account for the popularity of soccer and cycling in Imabari City.
In addition, we plan to begin managing and operating two facilities of AEON QUALITE PRIX New Sapporo and Daiei Kobe Sannomiya Store, which are existing stores of AEON Group companies, after renovating them significantly.
Given the current situation in which construction costs remain high, we will achieve profitability by absorbing costs while considering making changes to building specifications when opening new malls.
Existing mallsRenovating 21 malls across the country, including the expansion of floors at two malls.
In fiscal 2016, we will carry out large-scale renovations at 21 malls, twice the level of a year ago, to breathe new life into existing malls. In addition to these renovations, we will increase the profitability of malls through the following four measures.
The first is the expansion of incidental income by using mall space. We will translate our strong ability to attract customers into revenue by increasing paid events and product exhibitions in cooperation with companies and local governments.
The second measure is the promotion of localization. We will increase our ability to attract customers by offering attractive community-based malls.
The third is the promotion of digitalization. We will work to enhance guide signs inside the mall using Pepper*, strengthen content such as websites and SNS, and improve our public relations.
The fourth measure is responding to inbound tourism. We will strive to attract inbound demand by enhancing tax-exempt support at specialty stores and expanding shopping functions and services for foreign tourists.
*Humanoid robot developed by SoftBank Robotics Corp. We are adopting a number of measures by using the robot in our own unique way.
