On March 4, major retailer AEON Co., Ltd. announced that it would acquire all shares of Peacock Store Co., Ltd. held by J. Front Retailing Co., Ltd., making it a wholly owned subsidiary. The acquisition price, including debt, was approximately 30 billion yen. The share transfer took place on April 1, and Peacock Store, a subsidiary of J. Front Retailing, became part of the AEON Group on that day. This acquisition was a business decision resulting from the alignment of both parties' objectives. Peacock Store operates 88 stores primarily in the Tokyo, Chukyo, and Kinki regions, primarily in urban, high-end supermarkets such as Daimaru Peacock. While renowned for its selection of imported foods, the company has struggled in recent years due to the low-price strategies of nearby supermarkets and the transformation of convenience stores into grocery stores. Sales for the fiscal year ending February 2012 were 112.6 billion yen, down 4.9% from the previous fiscal year. This marks the second consecutive year of a net loss. With this share transfer, J. Front Retailing aims to strengthen its core department store business. AEON, meanwhile, has been implementing a "large city shift" to urban areas where population growth is expected to continue, as part of its mid-term management plan, which began in fiscal 2011. It has positioned the three major metropolitan areas, where it had previously lacked presence, as key areas, and is expanding its My Basket chain of small grocery stores. With the addition of Peacock Stores, AEON's urban supermarket network will grow to nearly 600. While the future format of Peacock Stores has yet to be announced, it is clear they will shift to a low-price strategy centered on AEON's private brand, Top Value. Over the past few years, the supermarket industry has seen an accelerating shift from large suburban stores to smaller urban stores. This shift is driven by a population return to cities and the saturation of suburban stores. Suburban development is nearly complete, and attention is turning to cities with ever-growing populations. In fact, just as convenience stores are being transformed into small grocery stores to accommodate the aging population, urban stores are rapidly shifting their format. While some high-end supermarkets have been able to secure stable customer bases, Peacock Store's position has been somewhat unclear. This latest acquisition is a prime example of the current state of urban supermarkets undergoing change.