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Yedo Department stores Essay

This report has been submitted in response to a request from Yamashiro Kazuo, CEO of Yedo. The aim of this report is to describe and analyze the current situation in order to recommend future strategies. This report will cover the following areas:

1. Executive Summary 2. Current Situation 3. Findings 4. Conclusion 5. Recommendations

Executive Summary: Today competition is one of the most vital problems in the world. This has changed the trends of shopping by Japanese. In this report, we suggest some important measures which will indeed help Yedo to improve their profits.

Yedo is a successful Tokyo based department store chain with six outlets in Japan and two more in New-york and London. It has an excellent reputation for high-quality goods. It has an outstanding service and large number of sales staff.

This report makes recommendations on how to maintain and increase the profitability of Yedo Department Store, which was founded in 1895 and has established itself as an outstanding business not only in Japan but also in London and New York.

Current Situation

For almost over 115 years of successful trading, yedo is struggling a difficult situation. As a result, the profits have felt sharply over the last year and its forthcoming situation is now questioned. Furthermore, it’s first six months of this year where not been as profitable as they expected. According to the research conducted we found out that the situation is mainly due to: * New entrances of foreign competitors like convenience stores, discount stores, specialty stores, foreign retail chains. * Yedo’s stores are being observed as an old fashioned store.

It is unlikely that the current situation will remain stable. Therefore, measures are required in order to develop further strategies to improve their profits and sustain in the market.


According to the TWCB market report, the two mains problems are the competition and the different trends that appear currently. Yedo department store was established in 1895 with approximately 3200 employee. Recently, the performance of Yedo has been very disappointing and few solutions have been recommended to solve the problems. They offer a much wider range of good and services than they used to and respond quickly to demand and the other stores are often operate round the clock, whereas in Yedo’s Company essential customers are the brand conscious and 80% are female.

Discount Stores: Along with this information, Discount policies are only available during regular January and July sales. Moreover, prices in these stores are 20-30% below manufactures recommended level; also stores which price all products at Ұ100 have become popular in Japan.

Speciality stores and foreign retails have been developed in competition with Yedo .In fact, stores as Muji and Fast retailers sells good quality, ‘no brand’ product are low prices, backed up by sharp advertising. Fast retailers have opened 430 stores in Japan and plan another 80 to 100 each year. Muji has 251 stores in Japan and appeals mostly to young shoppers and some following deregulation in the retail industry like Carrefour from France, and the American Chain Wal-Mart, Plan to open in Tokyo. As the Japanese population ages, older groups will provide opportunities for sales growth. Consumers want value for money and want to feel they have got a bargain.


In line with the above findings of Yedo Department stores: * Yedo is old fashioned, he was founded in 1895 and his style is bit old traditional * Yedo company doesn’t have broad range of products and their products are only for women because of which its losing their market * Prices are too expensive and they don’t do a lot of sales * Yedo company don’t give a lot of services and opening hours are short * Yedo company don’t target to all groups like middle class


* Yedo should start targeting men’s and youngsters as well rather than just having ladies product. * Yedo should reduce her price and have to do less quality goods * Yedo should extend her branch, in small country firstly and after in big country * Yedo should be more flexible with extended opening hours. * Yedo should use online technique like e-stores to reach out to all groups of customer where they can attract online consumers.

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