Merger in Japan

Three big Japanese retailers, Homac, Kahma and Daiki, have announced that they are going to bring together their business operations under the umbrella of a holding company from September 2006. Kahma operates 100 stores, Homac has 147 and Daiki 112. The three chains together account for annual sales of JPY 420 bn (€ 3.2 bn), which amounts to a market share in excess of 10 per cent. A fourth company in the shape of Daiyu Eight might possibly join the planned holding company, though this is not expected before September 2007.