Saturday, February 23, 2013
Aeon Aiming For Private-Label Sales Of Y1tln In FY13
TOKYO (Nikkei)--Aeon Co. (8267) intends to increase sales of private-label goods to 1 trillion yen in fiscal 2013, up 40% from fiscal 2012.
The retailer plans to overhaul its private-label lineup within the next 18 months. Its offerings will thus increase only slightly from the current 6,000 items or so in fiscal 2013. But under plans unveiled Friday by Executive Vice President Hiroshi Yokoo, a value-oriented private brand, with prices 30-50% below those of national brands, will increase from 400 products now to 600 next fiscal year in anticipation of the April 2014 consumption tax hike. The company aims to secure earnings while addressing customers' preference for lower costs.
Sales of store brands look to rise 30% on the year to 700 billion yen in fiscal 2012. Private-label goods account for about 20% of sales at Aeon Retail Co., which operates some 340 general merchandise stores, with the percentage likely to climb to about 25% in fiscal 2013.
Aeon group supermarket and convenience store operators will also expand sections for private-label goods.
Other major retailers, facing heightened competition from Internet retailers and discount chains, plan to strengthen sales of their own store brands. Seven & i Holdings Co. (3382) is targeting private-label sales of 1 trillion yen in fiscal 2015, double the fiscal 2012 figure.
(The Nikkei, Feb. 23 morning edition)