Blog: China / Japan dispute shakes retail sector
Dean Best | 17 September 2012
The diplomatic dispute between China and Japan over a group of islands in the East China Sea made headlines worldwide over the weekend - and Japanese retailers are feeling the effects of Chinese anger.
Japan's move to buy some of the islands from a private owner has angered some Chinese, who have protested across the country in recent days.
In the retail sector, Seven & I Holdings has said it will close over 200 outlets tomorrow, according to reports. Reuters said Aeon Co. also shut six Jusco supermarkets in China.
Elsewhere, Toyota and Honda reportedly said stores in China were damaged, while electronics firm Canon said it would close three plants.
The dispute between two of the world's three largest economies will be very closely watched by investors. People's Daily, the official newspaper of China's Communist Party, implied China could look at economic sanctions. "Japan is putting its own future at risk. The Japanese economy has long been sluggish, and Japan has always hoped to hitch out of its lost two decades on China's economic bandwagon," it wrote on Saturday.
One Japanese food company that will be monitoring the situation is Itochu Corp. The Japanese conglomerate said last week it was in "advanced negotiations" to buy Dole Food Co.'s global packaged food assets, as well as its fresh produce business in Asia.
Expansion in China looks to be a critical factor in Itochu's interest in the US firm's operations, as we reported on Friday.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
- Danone's Q1: four things to learn
- Who will buy Danone's Stonyfield business?
- Column: Why snacking is the new meal
- Nestle Q1 update: four things to learn
- Interview: Sir Kensington's on sale to Unilever
- Tyson shops Sara Lee bakery, Kettle and Van's
- Nestle to cut UK confectionery jobs
- Tyson to buy burger-to-entree firm AdvancePierre
- PepsiCo affirms full-year target as Q1 hits mark
- Icelandic to sell Saucy Fish Co. owner Seachill