Random anecdote, but last year they opened a Muji store in very central, expensive location in Helsinki. (The whole top floor of the most trafficked shopping center/travel hub). Day 1, they got huge lines since people went to take a look what kind of store it was. Today, the store is empty most of the time. We already have Ikeas here, which is basically a superior version of Muji. Cheaper, larger stores, less cluttered stores... I think the European expansion will run into similar headwinds elsewhere in Europe.
Interesting - that might just be the tip of the iceberg. I've seen conflicting data on whether Nobuo Domae's new stores are margin accretice or not. That's the key factor to understand, because otherwise growth could end up being value destructive.
ugghhhh I wish they didnt to their rural/suburban expansion. its going to make the numbers look horrible for a while and the stock becomes dead money. Also any thesis that rests on the rural population of Japan spending a lot is doomed. theres just not enough people.
Random anecdote, but last year they opened a Muji store in very central, expensive location in Helsinki. (The whole top floor of the most trafficked shopping center/travel hub). Day 1, they got huge lines since people went to take a look what kind of store it was. Today, the store is empty most of the time. We already have Ikeas here, which is basically a superior version of Muji. Cheaper, larger stores, less cluttered stores... I think the European expansion will run into similar headwinds elsewhere in Europe.
Interesting - that might just be the tip of the iceberg. I've seen conflicting data on whether Nobuo Domae's new stores are margin accretice or not. That's the key factor to understand, because otherwise growth could end up being value destructive.
ugghhhh I wish they didnt to their rural/suburban expansion. its going to make the numbers look horrible for a while and the stock becomes dead money. Also any thesis that rests on the rural population of Japan spending a lot is doomed. theres just not enough people.
Yeah that's what I fear as well. Perhaps I might put on a short term trade.