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Aeon Group has announced plans to invest JPY 500bn (US$4.4bn) in online operations over the next three years.
The investment plan will kick off straight away and run through until 2020, with the objective for Aeon to raise its online profile, plus invest in new technologies and services.The investment represents a 150% increase on previous levels and appears to be just the start of the plan, with Aeon President, Motoya Okada, revealing that the retailer will further double its investment in online from FY2021.
The announcement comes as part of a mid-term business plan, which Aeon has been formulating over the past 18 months. Japanese and South Korean retailers in Asia have previously led the way in terms of online retailing in Asia, but increasingly marketplace retailers, such as Alibaba, JD.com and Amazon, alongside China's bricks and mortar retailers, are the ones that are driving the innovation. With this in mind, plus the growth of online retailing challenging the tradtional store-based model globally, Motoya Okada, said, "We will spend more on things other than bricks and mortar stores."