ville-marie Centre Eaton de Montréal

[maxi2515]

il y a 32 minutes, Alexcaban a dit :

Still missing a MUJI. 

MUJI va pas super bien présentement malheureusement 

[Mondo_Grosso]

23 minutes ago, Alexcaban said:

Still missing a MUJI. 

MUJI ne va pas bien ces jours ci, mais ils disent vouloir ouvrir environ 70 nouveaux magasins à l'international d'ici août 2021. Peut-être que Montréal fait partie de cette prochaine expansion?: https://www.forbes.com/sites/tiffanylung/2020/07/12/beyond-the-pandemic-why-muji-failed-to-survive-in-the-us/#1718acbc6d2c

Beyond The Pandemic: Why Muji Failed To Survive In The U.S.

Muji U.S. files for bankruptcy as the latest coronavirus casualty

Japanese lifestyle retailer Muji’s U.S. operations have filed for Chapter 11 bankruptcy with a total debt of $64 million, joining the list of 110 companies (including Brooks Brothers in the same week) that have gone bankrupt this year in the U.S., victims to the pandemic. The company (under Ryohin Keikaku group) listed assets and liabilities in the range of $50 to $100 million, with an estimated 200 to 999 creditors.

Muji declares troubling times for the retailer in an official statement release:

In an official statement, the retailer will be restructuring its business within 180 days and will be running fully operational – offline and online – while closing unprofitable stores. Other markets will remain unaffected. Muji’s 19 stores in the U.S. have been dormant since mid-March due to the pandemic. Although several of its stores have begun to reopen, the retailer is still losing out to its high rents and other costs, causing the business difficulties to stay afloat. 

“I will personally realize the restructure in the U.S.” Ryohin Keikaku president Satoru Matsuzaki says, following the statement.

Before COVID-19, the retailer had already been struggling because of the exorbitant rental prices in prime locations and landmarks within the U.S. – such as its New York Times Square and Fifth Avenue flagships. Rents were being renegotiated but had failed to reach a solution to overcome its costs. Expansion plans domestically were also put on a halt. In its recent first-quarter announcement, the group’s operating revenue fell 30% to 78.7 billion yen ($736.2 million) with a net loss of 4.1 billion yen ($38.3 million).

The retailer had entered the U.S. market in 2007, where it was recognized with great importance as a “cornerstone in building name recognition,” Matasuzaki once emphasized. Yet, their move didn’t come easy as logistics restrictions obstructed import clearance. Additionally, costs soared for its distance between its production regions and the states, thus carrying over to its selling price and having to reduce its product offerings to lower import costs. Fast forward a decade later, the retailer is still facing increased costs from its logistics provider owing to the excessive inventory it holds, prompting consecutive deficits.

Unwelcomed In The U.S. 

Famed for its no-frills and no-brand philosophy, the retailer was the successful version of Brandless of their times. Starting as a private label for Seiyu department store with only 40 items in the 1980s, Muji spun off as an independent brand as its own and now has over 7,000 SKUs from travel to apparel.

The brand's signature and versatile acrylic containers popularly used for cosmetic storages

 MUJI

Its ranges are minimalistic and are recognizable for its signature translucent acrylic containers and wooden household goods. Apart from its neutral colorway, the only vibrancy you’d find in the shop is from its colorful ballpoint pens and stationery – a staple for teachers and journaling teenagers. 

However, it is their very own brand philosophy and anti-America consumerism approach that led to their downfall. While the Japanese and the brand itself holds a strong sustainable mentality in only purchasing what is needed with quality top in mind, the Americans are the opposite buying in bulk and valuing aesthetic over function. 

Yet, Muji had its 15 minutes of fame pre-Marie Kondo craze with beauty YouTubers raving about their acrylic makeup storages, allowing influencers to create a grand display of their trophy collections. The Kardashian’s organized pantry with acrylic bins lined across every shelf made the Container Store TCS +1.7% look chic and Pinterest-loving users found home inspiration and identical acrylic drawers at their local Target TGT +2.4% for a fraction of its price. Its other ranges and the Japanese aesthetic struggled to make waves in the states with its simplistic design focus and the lack of tailoring to the U.S. market. Prices were also more expensive than their home base which had pushed many consumers to seek elsewhere for cheaper dupes instead.

Troubles At Home

Beyond the states, Muji continued to suffer even within its home markets from ongoing store closures and weak consumer spending. Monthly same-store sales halved during the peak cases in April and May, resulting in an operating loss of 2.9 billion yen ($27.2 million) during its recent quarter. More significantly, the group last year had reported a decline in their operating profit for the first time after eight years of continuous growth. Even China’s same-store sales had dropped despite the market being their second largest to their home country. Other international markets such as Korea were undergoing an anti-Japanese sentiment, whereas Hong Kong is still impacted by their political turmoil. 

The brand’s deterioration lies in their failure to accurately predict demand thus bearing a longstanding mass inventory problem where the unsold stock has been accumulating from store shutdowns, especially in seasonal items such as their spring/summer apparel – and also faulting to the warm winters. However, the brand has been reluctant to write down the value of unsold goods to protect its quality standpoint and branding in addition to controlling its gross profit margins. Yet, planned price revisions are set in place in addition to an increase of promotional plans as a response to Japan’s consumption tax increase. 

What’s Next?

Casting higher prices abroad are inevitable given its production and shipment costs, hence its decision to shift production from China to cheaper locations in South East Asia and India to alleviate this problem. In facing its inventory issues, upcoming fall/winter collections and future orders will be reviewed and reigned in to overcome its excess stock problems.

Despite the global turmoil, Ryohin Keikaku group plans to expand its global network to 1,138 stores by August next year, an increase from its current portfolio of 970 stores. Whilst its domestic business accounts for 60% of its revenue, the attention has shifted from its maturing market to aggressive expansions outside of Japan. New business streams in furniture subscription have also emerged in light of the new work-from-home schemes

With a focus in China, half of its current global outlets are based in the region blessed with newer innovative formats such as its Muji Hotel and its first convenience store held within JD.com’s headquarters in Beijing. A team dedicated to China has also been taken on to monitor local lifestyle trends and to tailor product curations and developments for the Chinese market specifically.

Looking at the bigger picture, Japan is taking back the reigns and making a comeback itself in preparation for the upcoming summer Olympics. With seven new global flagships opened this summer amidst the pandemic, retailers are beginning to place their bets and fully invest in Japan as Asia’s next top flagship destination.

[Rusty]

25 jul 2020

 

[Rocco]

La verrière au toit des années 80-90 ne fitte pu pantoute.

[vincenzo]

I don’t quite understand why they did not line up the connection to historic building with the McGill college entrance. Would have looked spectacular. 

[Mondo_Grosso]

3 hours ago, vincenzo said:

I don’t quite understand why they did not line up the connection to historic building with the McGill college entrance. Would have looked spectacular. 

You mean to remove all of the shops between the original centre Eaton and the old complexe les ailes?

[vincenzo]

Yes, instead of the corridor being at the north end with only sides of stores facing onto it, a central corridor Would provide prime retail space.

[jesseps]

On 2020-07-22 at 9:59 PM, maxi2515 said:

MUJI va pas super bien présentement malheureusement 

I guess Americans don't want to spend a pretty penny on Japanese minimalism. 

[maxi2515]

Il y a 7 heures, vincenzo a dit :

Yes, instead of the corridor being at the north end with only sides of stores facing onto it, a central corridor Would provide prime retail space.

Il ne faut pas oublier que cela est une renovation et non une reconstruction from scratch ! 

[Mondo_Grosso]

7 hours ago, vincenzo said:

Yes, instead of the corridor being at the north end with only sides of stores facing onto it, a central corridor Would provide prime retail space.

Due to structural restraints, I dont rhink that would be possible without a complete rebuild.