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Aeon may expand in India, Vietnam as Japan retail sales slump
Aeon Co., Japan’s second-largest retailer, may expand in India and Vietnam to boost growth as sales slump in its home market.
“At a macro level, gross domestic product in the next 10 years is going to grow faster in Asia than the rest of the world,” Jerry Black, vice president in charge of Aeon’s Asia strategy, said in an interview Thursday in Chiba, near Tokyo. While the company hasn’t made “any firm decisions,” India “is appealing to us” and he’s looked at locations in Vietnam.
Aeon, operator of Jusco general-merchandise stores, is struggling to spur sales in Japan, where the central bank has forecast a record 3.4 percent economic contraction this fiscal year. India, the world’s second most-populous country, is forecast to grow at least 6 percent this year, while Vietnam’s economy may expand as much as 5.2 percent, according to their central banks.
The retailer also plans to “expand more aggressively” in Malaysia and Thailand, said Black, Aeon’s first non-Japanese executive. He joined Aeon in March and became vice president in May.
The company has 30 general merchandise stores and supermarkets in Hong Kong and China. The company opened its 10th Maxvalu supermarket near Bangkok in Thailand this month.
Aeon rose 1.5 percent to close at 961 yen in Tokyo trading. The stock has risen 7.7 percent this year, lagging behind the 17 percent gain of the benchmark Nikkei 225 Stock Average.
Before joining Aeon, Black, 50, worked as chief executive officer at Kurt Salmon Associates, a US consulting company for retailers. He worked in Tokyo between 1995 and 2002 for Kurt Salmon Associates.
thanhnien, Bloomberg
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