Company Background

AEON Co., Ltd. is the holding company of AEON group which operates multiple business areas: General Merchandise Store (specialized stores), Supermarket (community-rooted supermarkets and discounts stores), Health & Wellness Business (pharmacy stores), Financial Services Business, Shopping Mall Development Business, Service & Specialty Store, International Business, Shared Function Companies and Others.

In 1758, Sozaemon Okada founded company named Okadaya for kimono trading. In 1969, Jusco Co., Ltd. was established as a joint venture between the Okadaya and other 2 companies Futagi and Shiro as response to economic recession in 1964-1965.  During the 70s -80s, the company underwent many merging and expansion to include other business lines such as niched retailed stores, financial services, specialty stores, etc., beside retailing. In 1985, first overseas store was opened in Malaysia, marking an important milestones of the company in overseas expansion in South East Asia. In 2001, the company name was changed from Jusco Co., Ltd. to AEON Co., Ltd, and group name was also changed to AEON. AEON established China and ASEAN headquarters in 2011, and new stores in emerging markets like Vietnam, Cambodia were opened in 2014. By 2021, AEON has presence in at least 14 countries, primarily in Asia, with 19,288 stores covering General Merchandise Store, Supermarket, Convenience Store, Specialty Store, etc. By Feb 2021, AEON has consolidated operating venue of AEON at JPY 8.6 trillion and employee group of 570,000 people. AEON is now among top 5 retailer of Asia by 2021.

AEON Mall Co., Ltd. is the subsidiary of AEON Co., Ltd. It develops and operates shopping malls including supermarket stores in Japan and Asian countries. By Feb 2021, the network of supermarket consists of 2,288 stores spreading out 14 Asian countries. As indicated by Mr. Akio Yoshida, AEON Co., Ltd., Director, President and Representative Executive Office in the “Five Reforms” of AEON for growth , “Shift to Digital Markets” is 1 pillar that the company will emphasize through 2025. Hence Digital Transformation is a relevant topic for the company. 

The assignment only focuses on the recommendations for supermarket store which contributes to 35.4% of operating revenue of the company by full-year 2020. The targeted country is Japan.