Analysts say men's wear chain Aoiki's failed bid for market counterpart Futata will not stop an uncharacteristic slew of mergers and acquisitions in an industry faced with shrinking demand and an expanding economy.

Aoiki's aim to become the top men's wear chain was thwarted last month. The company said it had wanted a "friendly business integration"

Futata, a regional men' s wear chain based in the southern island of Kyushu, has now agreed to be bought by its biggest shareholder, Konaka, who owns 20% of the firm.

Aoyama Trading remains the nation's largest  men's wear retail chain with annual sales of JPY202.7bn, compared  with Aoki's JPY106.6bn.

By Michael Fitzpatrick.