Leading position and brand recognition in the Japanese retail market Strong performance in shopping center development and financial services Conservative financial and investment strategies Lowering profitability in the general merchandising store (GMS) business Stagnant performance in its specialty store business Uncertain prospects for improvement in financial profile Aeon Co. Ltd. (A-/Negative/--) holds one of Japan's largest retail networks offering various types of retail formats and leading brand recognition. The company maintains a strong business profile supported by its pursuit of cost reductions and its engagement in product development and procurement, which leverages economies of scale. Although shopping center development and services business underpin the company's overall revenue to a certain degree, GMS operations account for a larger proportion of the
