August 25, 2025
Ito-Yokado Draws the Curtain on Its Apparel Reconstruction Plan
Partnership with Adastria to End in 2025
Ito-Yokado will cease its clothing procurement from Adastria, Japan's third-largest apparel manufacturer, with the 2025 Fall/Winter collection serving as its final product. Ito-Yokado has exited in-house development and has been sourcing from Adastria as part of its clothing restructuring plan. This arrangement will end in approximately two years. In September, it will become a subsidiary of a US investment fund and will focus its management resources on grocery stores.
Ito-Yokado has established sales areas for the "FOUND GOOD" clothing brand supplied by Adastria in 64 stores, representing 70% of its general merchandise stores. The company will decide whether to fill vacant store sites with other tenants, considering each store's regional characteristics and location. It plans to continue selling remaining products after spring 2026.
Challenges in Attracting Younger Shoppers
Ito-Yokado announced its withdrawal from its original clothing business in March 2023. The company had ceased planning and developing its own products and shifted to a policy of sourcing supplies from major apparel retailer Adastria. FOUND GOOD sales areas were opened in February 2024, mainly in flagship stores such as the Ito-Yokado Kiba store in Koto, Tokyo.Adastria was responsible for product planning, production, sales floor setup, and marketing activities such as promotions, while Ito-Yokado handled checking and adjusting product order quantities. Targeting families, the products highlighted functionality. Shirts and pants were priced just under $3,000, at the same level or lower than the private brand products Ito-Yokado had previously sold.
The new brand had a noticeable effect, with an Ito-Yokado official stating, "Increased numbers of people stopping by not only the fresh food section but also the clothing section" (Ito-Yokado). However, some commenters remarked, "We aimed to attract customers in their 20s to 40s, but in reality, seniors in their 60s and above were more likely to visit and make purchases than younger people." There were also issues, such as differences in sales between stores.
