Japan’s leading supermarket operator Aeon reported its sixth-consecutive record full-year profit growth and expects higher profits this year as it benefits from a pick-up in consumer spending. Aeon also said group operating profit would range from 185 to 195 billion yen ($1.58 to $1.66 billion) in the current fiscal year ending February 20.

For 2005-2006, Aeon reported a profit rise of 13 per cent or around 166.11 billion yen, close to meeting market estimates of around 167.30 billion yen. The retailer’s group revenue rose 5.6 per cent to 4.43 trillion yen as core retail operations posted good results. Aeon’s main retail sales started to post gains due to a revival in consumer spending amid improved wage and job conditions. In recent years, Aeon, Asia’s biggest retailer in sales terms, has anchored its strategy on financial and mall development, a move that paid off as Aeon Credit Service and Aeon Mall emerged as the group’s strong performers. Early this week Aeon also announced that it plans to take control of mall developer Diamond City to further boost its mall operations.