Don Quijote, the iconic Japanese discount store chain known for its vast and eclectic collection of lifestyle goods, is facing one of its most significant transitions. Founder Takao Yasuda, who is battling terminal lung cancer, is preparing to hand over a nearly $6 billion fortune to his 24-year-old son, Yusaku Yasuda.
Valued at more than $21 billion, Pan Pacific International Holdings Corp. (PPIH), the parent company of Don Quijote, represents one of Japan’s most prominent retail empires. The succession puts this empire in the hands of a generation-Z heir, underscoring the symbolic and inherent risks of dynastic succession in corporate Japan.
“Investor sentiment could hinge on how much influence Yusaku wields, his public visibility, and how the professional executive team, especially the CEO, balances founder legacy with evolving corporate priorities,” said Katsuyuki Kamei, president of Japan Risk Management Society and professor of business administration and risk management at Kansai University, according to Bloomberg.
Takao Yasuda in 2022. Photographer: Kevin Lim/Singapore Press/AP Photo
A Founder’s Legacy and Strategic Succession
Yasuda has built the Don Quijote chain over three decades, transforming it into a spectacle in the retail world. With its labyrinthine aisles, jammed with everything from novelty gadgets to luxury goods, the store has not only become a cornerstone of Japanese society, but also a must-visit destination for tourists.
Recognizing the pitfalls of continuous founder-led management, Yasuda handed the company’s day-to-day operations to non-family executives a decade ago. This separation of ownership and management has allowed the company to thrive across Asia.
While the young heir, Yusaku, is now tasked with engaging younger employees and attending board meetings, analysts expect the business to continue being run by an experienced professional team. This confidence in management was evident in July, when PPIH’s shares showed little reaction to the news of Yasuda’s illness.
The management team’s stability will soon be tested, however, as CEO Naoki Yoshida prepares to step down, with veteran Hideki Moriya slated to take the helm.
As Don Quijote continues its aggressive expansion — it is planning to add 250 more stores and nearly double its revenue by 2035 — the young heir, who holds directorships at two overseas subsidiaries, will be a visible guardian of the brand’s ambitious future.
This article is based on reporting by Filipe Pacheco, Pui Gwen Yeung, and Koh Yoshida for Bloomberg.
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