In the face of “a sense of business stagnation” toward the end of the fiscal year to March 31, Japanese apparel retailer Aoki Holdings profit fell 6.5 per cent to JPY17,789 million despite a modest 2.6 per cent rise in sales to JPY188,594 million (US$ 1.736 million).

“There remains a lack of underlying strength in personal consumption, and the outlook remains opaque,” says the company.
It expects the Japanese economy to stay in a modest recovery phase over the ensuing year, underpinned by improvements in employment and income.

“At the same time, the outlook is likely to remain unpredictable because of overseas economic and exchange-rate trends, as well as moves to raise the consumption tax rate in Japan.”

Aoki says it will use a variety of actions to respond to diversifying consumer needs, as well as opening more stores and revitalising existing locations. Already the group has expanded into new markets, including the bridal and entertainment sectors.

Aoki specialises in selling high-quality business suits at low prices, with most of its stores along major thoroughfares in suburban areas. Over the years the group has evolved into total styling stores, including merchandise for women. It was the first apparel retailer to introduce a stylist system for customers, in 2004.