Leading department store operator J. Front Retailing says it will start a fund to support succession planning at smaller companies. The initiative includes firms with traditional expertise and services.

Finding successors to carry on such businesses has become increasingly difficult. This has also led to concerns about the loss of unique Japanese craftsmanship developed over long periods.

The operator of the Daimaru Matsuzakaya and Parco stores says it will offer the service with Tokyo-based venture capital fund Ignition Point Venture Partners. The fund will acquire majority stakes in companies seeking help with succession planning and is expected to start up in March this year. J. Front says the fund is the first of its kind set up by a retailer in Japan.

J. Front will also give the companies access to its department stores or e-commerce sites as sales channels. In addition, it will provide business consultation services and aims to initially sign up about a dozen companies.