Metro Moves: Japan shoe retailer opens first U.S. store in Boulder

The specialty shoe store based in Japan signed a lease to open its first U.S. location in Boulder, commercial real estate firm CBRE announced. Stride Lab caters primarily to the running community and offers consulting for local sports needs, its website says.

It will be in a 770-square-foot store in Siena Square, a mixed-use site within walking distance from Pearl Street’s shops and restaurants, at 2060 Broadway.

“Opening our first Stride Lab in the US and introducing a natural footwear store in Boulder is a real milestone and just the start of our US expansion.” said Cedric Scotto, CEO and cofounder of Stride Lab in a statement.

Broomfield’s Bay Aquatic Park eyes $9 million renovation project

The Denver area’s first community water park is aging and needs some fixes.

Denver-based Pinkard Construction announced it will run a $9 million renovation project of the Bay Aquatic Park located in Broomfield.Pinkard built the aquatic park in 1991 and said it needs renovations to improve its condition and meet modern building and health codes. The project will replace the main leisure pool, family slide, body slides and slide plunge pool. It will also add a deck space, more shaded area and a new mechanical building.“It’s very rewarding to be able to come back over thirty years later and work once again on a project that the community has enjoyed so much,” said Pinkard Construction president Tony Burke. “Many of our current employees remember coming here as kids.”Foreign Retailers’ Entry into Japanese Market
Luxury Brands
Before and
during 1980 s
1st H alf of
the 1990 s
2nd H alf of
the 1990 s
1981: Louis Vuitton Japan (France),
Wholly Owned (except 1 %)
1983: Hermes Japon (France),
Seibu Department Stores, 10% share
1991: Prada Japan (Italy), Wholly Owned
1991: Bvlgari Japan (Italy),
2 Japanese partners, 20% share
Non-luxury Brands
1993: Nike Japan (US), Wholly Owned
1993: Eddie Bauer Japan (US),
Otto-Sumisho, 70% share
1995: Gap Japan (US), Wholly Owned
1996: Pier 1 imports(US),
Akatsuki Printing
– Withdrew (2001.6)
1998: Zara(Spain), Wholly Owned
New to J apan
1979: Tower Records Japan (US), Wholly Owned
1990: Virgin Megastores Japan (UK), Marui, 50% share
1990: HMV Japan (UK), Wholly Owned
1991: Toys “R” Us-Japan (US),
McDonald’s Co. (Japan), 11% share
1997: Office Depot Japan (US), Wholly Owned
1997: OfficeMax Japan (US), Jusco (currently Aeon)
– Withdrew (Jan. 2001)
1997: Sephora AAP Japan (France), Wholly Owned
(LVMH Group) – Withdrew (Dec. 2001)
1999: The Boots (UK), Mitsubishi – Withdrew (Dec. 2001)
2000 s 2000: Amazon.co.jp (US), Wholly Owned
Note: The figure before each company name indicates the year of entry. Following each company name is the name of its partner(s) in Japan
(including tie-ups and joint ventures) and the equity stake of the partner(s). “Wholly Owned” indicates there is no partner. The classification of brands is arbitrar businesses based on concepts new to Japan, such as membership
warehouse clubs (Costco), hypermarkets (Carrefour) and
membership food wholesalers (Metro). All these players are
striving to expand their presence in Japan by opening stores at a
rapid pace. In December 2002, Wal-Mart, the world’s largest
retailer, acquired a controlling stake in The Seiyu Ltd., the sixth
largest supermarket operator in Japan. Also jumping into the race
is Tesco, the No. 1 supermarket chain in Britain, which plans to
edge into the Japanese market.
Winners and Losers
According to Izumiya Research Institute, a think tank affiliated
with a supermarket chain, 39% of the 79 foreign retail companies
that entered the Japanese market since 1980 have sprouted into
chain retailers with 10 or more outlets. The bright picture of these
success stories, however, is tempered by the fact that 38% of
foreign retailers attempting market entry during the same period
eventually retreated. OfficeMax, Sephora and The Boots are
among the major foreign retailers that exited from Japan recently.
Their poor performance in Japan is attributable at least in part to
poor preparation. Sephora, for instance, located its perfume
section in the important first floor of its stores, despite relatively
small sales of perfume products in Japan. The Boots made the
strategic blunder of choosing locations that didn’t fit its store
concept and failed to market its private brands effectively.
Japanese consumers are known as fastidious shoppers who pay
close attention to product quality, selection and what’s selling well.
But they are also known for their continued loyalty to brands they
have embraced. The most crucial ingredient for success in today’s
liberated Japanese retail market is the tried-and-true formula of
conducting comprehensive market research and covering every
base, from consumer preferences to the best commercial locations
and most effective sales channels.
1990 May: Measures adopted to improve implementation of
the Large-Scale Retail Store Law.
1991 December: Toys “R” Us opens first store in Japan in Ami,
Ibaraki Prefecture.
1992 January: Revision of the Large-Scale Retail Store Law
takes effect.
1994 May: Deregulation measures provided by revised
Large-Scale Retail Store Law take effect.
1999 April: Costoco opens first store in Japan in Hisayama,
Fukuoka Prefecture
2000 April: Toys “R” Us goes public on the over-the-counter
market.
June: Large Retail Store Location Law takes effect,
superseding Large-Scale Retail Store Law
December: Costoco opens store in Makuhari, Chiba Prefecture.
: Carrefour opens first store in Japan in Makuhari,
Chiba Prefecture.
2001 January: Carrefour opens store in Izumi, Osaka Prefecture.
February: Carrefour opens store in Machida, Tokyo.
August: Carrefour abandons plan to open store in Kinshi-
cho, Tokyo.
2002 March: Carrefour abandons plan to open store in Rinku-Town.
September: Costoco opens store in Machida, Tokyo.
November: Carrefour opens store in Sayama, Saitama Prefecture.
December: Metro opens first store in Japan in Chiba.
: Toys “R” Us opens 133rd store in Japan.
: Wal-Mart acquires initial 34% stake in Seiyu (with
option for controlling stake).
2003 February: Metro opens store in Kawaguchi, Saitama Prefecture.
March: Costoco to open store jointly with Carrefour in
Amagasaki, Hyogo Prefecture.
October: Carrefour to open store jointly with Costoco in
Amagasaki, Hyogo Prefecture.
: Carrefour to open store in Minoo, Osaka Prefecture.
Note: Some information for 2003 reflects tentative plans (research by
Toyo Keizai Inc.)
Marunouchi, Tokyo.
A business district
reborn as a name
brand retail center.
The town’s new
symbol is famous
foreign brands. Bold Strategic M ove s by Foreign Retailers
Foreign companies began entering the Japanese retail market in
the 1980s. Back then, the foreign newcomers generally established
footholds in Japan through tie-ups or joint ventures with Japanese
players who offered local expertise. For instance, Toys “R” UsJapan, which opened its first outlet in 1991 and has since grown
into the country’s biggest retail toy chain, is a joint venture between
its U.S. parent and McDonald’s Co. (Japan) Ltd., the Japanese unit
of the global hamburger chain. The two companies even share
some of their locations. In recent years, however, an increasing
number of foreign retailers, including Gap, Costco and Carrefour,
are setting up operations on their own. They have adopted a “go-italone strategy” for more efficient store management and quicker
decision-making.
The categories of retailers coming to Japan have also changed
over years. In the 1980s, luxury brands like Louis Vuitton and
Hermes led the move into Japan. In the 1990s, specialty store
operators with distinct lifestyle images, such as Eddie Bauer and
HMV, comprised the mainstream of new entrants to the market.
Most recently, Costco, Carrefour and other comprehensive retailers
are beginning to claim the spotlight with their high-profile forays
into the market. The overall presence of foreign retailers in Japan
has expanded from the luxury product category into more everyday
goods, significantly boosting market penetration of foreign brands
in these areas.
Another notable trend is an increasing consumer interest in retail