Sun Hōseki's Fancy Pocket chain shrank 87% as kids stopped buying accessories

San Hōseki Co., Ltd. was an accessories and miscellaneous goods retailer operating the "Fancy Pocket" chain of stores nationwide, founded as a sole proprietorship in June 1965 and incorporated in October 1979 with ¥20 million in capital. Based in Chuo City, Yamanashi Prefecture, the company sold fashion accessories, jewelry, and character goods, and owned the original mascot "Hoppe-chan." Products were sold through physical stores (44 at peak), online via Rakuten, Yahoo, and Amazon, and at key locations including Harajuku.

At its peak around fiscal year 2013, San Hōseki generated approximately ¥4 billion in annual revenue. Sales then began a long decline as the Abenomics-era consumption tax hikes and a surge in non-regular employment reduced children's disposable income and gift purchases. By fiscal year 2016, revenue had fallen to the ¥2.1 billion range. The company closed unprofitable stores to cut costs, but the closures further reduced revenue and the withdrawal costs from leases worsened financial health. Management shifted focus to ecommerce, but this could not replace the lost store sales.

By the fiscal year ending September 2020, revenue had collapsed to approximately ¥500 million, an 87.5% decline from peak. The COVID-19 pandemic crushed the remaining foot traffic in physical stores. With total liabilities of ¥2.17 billion, San Hōseki filed for civil rehabilitation at Kofu District Court on August 27, 2021, and was in discussions with a sponsor for restructuring.