Aeon Co. Ltd. (A-/Stable/--) owns one of Japan's largest retail networks, which offers various retail formats and leading brand recognition. The company's strong business profile is backed by pursuit of reduced costs and engagement in product development and procurement, which benefits from economies of scale. Although the shopping center development and services business largely underpins the company's overall revenue, general merchandising store (GMS) operations account for a greater proportion of the company's total earnings than is the case for other Japanese general retail groups. Aeon was the only major general retailer in Japan that increased its operating profit in fiscal 2009 (ended Feb. 28, 2010), which it achieved despite a significant deterioration in the performance of its GMS operations in
