| Department stores and general merchandise
supermarkets (GMS), which once led consumption, are continuing to
merge and restructure operations in response to sales declines paralleling
the prolonged business slump. Convenience stores and specialized
volume retailers such as Uniqlo, which had once enjoyed high growth
rates, are also experiencing continuous sales decreases at existing
outlets, due to the adverse effects of prolonged deflation and intensifying
competition. Actions taken by foreign companies, including the market
entry of Wal-Mart, the world’s largest retailer, will undoubtedly
speed up the restructuring of local distributors, who currently
face numerous problems. |
