The drama surrounding a takeover proposal for Seven & I Holdings has sparked investor interest in other Japanese retailers such as Aeon, sending share prices soaring.
Shares in Aeon, Japan’s third-largest retailer by market value, have extended their gains this year to 25 percent and hit a record high this week. The jump came as people with knowledge of the matter said Alimentation Couche-Tard is discussing ways to improve its bid for the owner of 7-Eleven. Other retail companies such as furniture seller Nitori Holdings have outperformed Japan’s overall stock market.
News about Seven & I isn’t the only factor supporting Japanese retail and restaurant chains. Many of the retailers are considered relatively cheap compared to their international counterparts. Rising tourist numbers visiting Japan and signs of increased domestic consumer spending are also positive for the sector, while the recovering yen is also a boon as it reduces companies’ import bills.
