TOKYO (Standard&Poor's) Sept. 18, 2012--Industry consolidation may help stabilize Japan's retail sector, and revenue growth is essential to enhance Japanese retailers' credit quality, Standard&Poor's Ratings Services said in a Japanese-language report published today. Japan's retail sector has undergone a new round of consolidation since the beginning of 2011. Standard&Poor's expects this consolidation to continue for the rest of 2012 and beyond. Although many factors spur the ongoing consolidation, we believe the primary causes are market contraction due to population decline in Japan and fierce cross-format competition. Faced with a shrinking domestic market and intensifying competition, Japanese retailers have turned to consolidation in the struggle for survival, and we expect this to continue. As surviving
