The world has changed with Corona Will the department store change? June 6: 13:28

At the end of May, Isetan Mitsukoshi, the largest department store, has resumed operations at all stores for the first time in a month and a half. However, with the need to prevent new coronavirus infections, fumbling sales continued and it remains unclear when sales will recover. Looking at the after-corona, we will explore the future department store image from the story of Toshihiko Sugie, president of Isetan Mitsukoshi Holdings, how department stores should change. (Kei Nakazawa, Economics Department reporter)
*The interview was held on May 22nd.

Corona hits directly

Mitsukoshi Isetan Holdings, which has 21 stores nationwide and has sales of 1.1 trillion yen last year, centered on two main stores, Isetan Shinjuku Main Store and Mitsukoshi Nihonbashi Main Store. However, almost all stores were closed due to the new coronavirus. Sales from April to May were down about 80% from the same period last year. Inbound sales by foreign travelers have almost disappeared.

Following the cancellation of the declaration of emergency, operations will resume at six stores in Tokyo and Saitama on May 30. Business has resumed at all domestic stores for the first time in 52 days.

At the store, employees wear face shields. The sales floor of department stores has changed, where employees weren't even allowed to wear masks before Corona as a general rule for selling high-class customer service.

In terms of sales, it is unclear if the momentum like before can be recovered. President Sugie, who leads the group, feels that the corona shock has changed the way people consume.

President Sugie: Even if the
emergency declaration is lifted, the number of occasions and the number of times customers go out will decrease. The number of applications for the food delivery business conducted by the company has increased significantly, but a significant proportion of it has been online Some people say that they have never shopped. I think that the style of online shopping will change dramatically in the future.”

Online mail order department store

Department stores, which have a large store in a prime location and attract a large number of people, have fallen behind in online shopping. Even at Isetan Mitsukoshi, online shopping accounts for only 2% of sales. As the shift to online shopping for consumers is expected to accelerate due to the effects of corona, what will you do with it?

President Sugie
“While we were preparing, the e-commerce business was still developing, and despite the opportunity to increase the number of people who use online shopping, we were not able to get out of customers. Until now, either I have been focusing on the point that customers see information on the net and shop at the store, but we are late because we simply put the product on the net and sell it (special online shopping) However, due to the delay, there are very professional professionals such as buyers who are product professionals and sales staff who can propose coordination. We are aiming to differentiate ourselves from online shopping by introducing a function that allows us to consult on the Internet on a one-to-one basis.''

Can local stores be boldly reformed?

Due to the influence of the new coronavirus, local stores outside of the big cities have become an urgent issue. In addition to the declining population, many stores are declining due to the aging of the baby boomer generation, which has been supporting the sales of rural department stores. Although the building itself is deteriorating, we cannot invest in large-scale repairs and rebuilding. Amid concerns about further declines in sales due to the effects of corona, what measures will you take?

President Sugie
“Originally, I thought that regional stores could not survive without bold reforms, but considering the corona, we must have a sense of speed. Currently, products of flagship stores in Tokyo. We are also promoting efforts to make online shopping available at local stores, even if the local stores do not store products in real stores, it is now possible to send such Tokyo products and make comparison purchases at local stores. In that case, the current scale of the area may become unnecessary, so we will consider reducing the size to a form close to the customer's request and operating it at a low cost while renting out the other parts. I think we have to do it.''

On the other hand, he says that it is necessary to enhance the appeal of real stores at the main stores in Tokyo.

President Sugie:
“A store that stores standard products does not motivate you to come to the store. You say that you can collaborate with people who sell your products directly to customers through online shopping and have them see the products in real stores. You will not be able to attract customers unless you make an effort or propose a new promotion by partnering with a manufacturer that is not famous nationwide but handles limited products I have to constantly tackle and challenge myself."

After Corona's department store image

Starting from a kimono store, the department store industry has continued to change with the times as a store offering a variety of products = "departments". What is the image of a department store required after Corona?

President Sugie
“In recent years, the image of women's clothing has been strong when it comes to department stores, but the style of consumption has changed rapidly, and the lifestyle of spending extra money on clothes as in the past has disappeared. After all, I think that the desire for richness of life will not change even after the corona has converged, but rather it will become stronger.I think that while the digital support, the form of a department store will gradually change and remain. And I think it's my mission to leave it now.''

The new coronavirus will change the way people think about lifestyles and consumption, and the department store industry will also need to change significantly. How to capture after-corona department stores is being questioned as to how to bring in people who want a day of hare or extraordinary life.


Keisuke Nakazawa, Reporter, Ministry of Economic Affairs
Joined in 2011
After working at Fukushima station and Fukuoka station,
currently in charge of distribution and food industry