Two leading Japanese retailers have reported strong earnings for the year and predict continued growth for 2006. Seven & I and Daiei cited strong consumer spending boosted by Japan’s strongest economic recovery in ten years.
Seven & I, the country’s second largest retailer, said net profit for this year would rise 71 percent to Y150 billion (£722 million) thanks to a jump in consumer spending and the recent acquisition of Millenium Retailing, the Japanese department store group. It also said revenue would increase from Y3,890 billion to Y5,200 billion. Last year the company reported net earnings of Y87.9 billion.
“So far, only limited retail segments, such as department stores, have been benefiting from a turnaround in consumer spending. But we think that it is expected to be felt gradually in a broader retail segment, such as the supermarket business,” said Seven & I president Noritoshi Murata.
Click Here: ADELAIDE CROWS 2019 MEN’S HOME GUERNSEY
Daiei, meanwhile, saw net profits of Y413.2 billion, thanks mainly to debt waivers and improved performances of its subsidiaries. However the troubled retailer reported a drop in sales of 9 percent to Y1,675 billion due to competition in the Japanese market and the closing of 53 unprofitable stores last year. Furthermore, although the company is concentrating on improving its grocery business, its non-food businesses are struggling. Consumers prefer to buy clothes and electronics at specialist retailers.