AFX News Limited
Japanese retailer Daiei's founder dies
09.19.2005, 07:24 AM

TOKYO (AFX) - Isao Nakauchi, the founder of supermarket chain Daiei who helped transform Japan's retail landscape, has died of a stroke in hospital at the age of 83, the company announced.

Nakauchi, a native of Osaka city, won fame as a pioneer of discount retailing, turning Daiei into the country's biggest retailer in terms of sales in 1972 from the single drug store he opened in 1957 in Osaka.

In 1980, Daiei became the first Japanese retailers to achieve annual sales in excess of 1 trln yen, or about 9 bln usd at current exchange rates, though it has since lost the top ranking.

Nakauchi had been undergoing medical treatment in a hospital in the western Japanese city of Kobe since late August, according to Japanese news reports.

Nakauchi 'kept challenging to achieve 'a revolution in distribution' with his philosophy of realizing a society where consumers can buy what they want at prices they can afford,' Daiei said in a statement.

His style of centralized purchasing and mass selling at cheap prices was a hit in Japan but Daiei's financial standing rapidly deteriorated after the collapse of the so-called 'bubble economy' in the late 1980s.

Daiei is now being rehabilitated under the state-backed Industrial Revitalization Corp of Japan, concentrating on its supermarket business while backing off from the Nakauchi-era strategy of discounting and nationwide outlet networks.

In 2004, Nakauchi sold all his shareholdings in Daiei group companies.

kh/dr/bmm/rc













Article Controls



Related Sections
Home > News & Analysis



News Headlines | More From Forbes.com | Special Reports
   
Subscriptions >

Free Trial Issue of Forbes Forbes Gift Subscription
Subscribe To Newsletters Subscriber Customer Service
Buy Audio Version of Forbes




  
Trading Center
Brought to you by the sponsors below
 
 

CEO Book Club more >
The Philosopher Kings Of Hedging
The Philosopher Kings Of Hedging
Steven Drobny reveals insights from the hedge fund all-stars.
READ REVIEW          BUY THIS BOOK
Laissez Faire In The Studio
Dunstan Prial
At Columbia Records, John Hammond made some of the greatest discoveries in American music.
READ REVIEW          BUY THIS BOOK
Search Books


Advanced Search |  New & Notable

 
  
 
    

 
SitemapHelpContact UsInvestment NewslettersForbes ConferencesForbes MagazinesForbes Autos
Ad Information   Forbes.com Wireless   RSS   Reprints/Permissions   Subscriber Services  
© 2006 Forbes.com Inc.™   All Rights Reserved   Privacy Statement   Terms, Conditions and Notices


Stock quotes are delayed at least 15 minutes for Nasdaq, at least 20 minutes for NYSE/AMEX. U.S. indexes are delayed at least 15 minutes with the exception of Nasdaq, Dow Jones Industrial Average and S&P 500 which are 2 minutes delayed.


Powered By