Business Game over for Japan's department stores

[thomas]

Nikkei Asia takes a nostalgic glance at the declining depatos of Japan.

And it's not only the department stores on the brink of extinction but fish, meat, vegetable, fruit, tofu, sweets and hardware stores in shotengai which met a similar fate.

Matsuya department store in Asakusa 1931 (Wikipedia)​

Between 1990 and 2020, department store revenues declined from 9 trillion JPY (USD 63.4 billion) to 6 trillion yen. A 2.8 trillion JPY decline in apparel revenues was by far the biggest contributor. [...] there are 185 surviving department stores today, compared with 55,000 convenience stores and 19,000 supermarkets. In 2022, Fast Retailing, the parent of the fast fashion brands Uniqlo and GU, sold more apparel in Japan than all the department stores combined. A radical shift in demand starting in the 1990s toward cheap, disposable, casual clothing blindsided the department stores. A similar damaging shift took place in the market for home furnishings, typically located on the floors above apparel. Fish, meat, vegetable, fruit, tofu, sweets and hardware stores in shotengai (local shopping streets) met a similar fate as convenience stores and supermarket chains, suburban malls, and superstores siphoned off business.

The decreasing popularity of gift-giving and the advent of Amazon in Japan dealt another blow to Japan's department store culture.

Another blow came when the Japanese began to ignore their ancient seasonal gift-giving obligations. Department stores used to rely on the summer (chugen) and year-end (seibo) gift-giving seasons for a substantial portion of their revenues. Today, seasonal gift-giving has become optional, a data point in the changing soul of Japan. The arrival of Amazon in Japan in 2000 and the iPhone in 2008 were further body blows.

Paywall alert:

For Japan's department stores, the game is nearly over

Iconic retail sector reflected Japan's postwar moment in the sun

asia.nikkei.com

 

[Majestic]

I feel the same is true for America's department stores as well. A lot of shopping malls and shopping boulevards are struggling to stay viable, attract shoppers, manage shoplifting and homelessness, etc... I'd hate to see all of these destinations close. Some things (clothes for sure) are not entirely suited for online shopping.

 

[musicisgood]

Where I'm at, most of downtown died out about 20 years ago. I blame it on Daiso and Watts. But most daytime shoppers at that time were in their 60's and now for sure they are in their 80's. One thing I have noticed also is the gift giving thing. The inventory seems to be less these days.

 

[musicisgood]

This market just close 11 or 14 of its stores the other day in Tottori.

会社情報 | TOSC

会社情報 COMPANY 会社概要 沿革 企業理念 会社概要 沿革 トスクの企業理念

www.tosc.or.jp

 

[Master of Time]

I was recently wondering if the switch to online shopping has reduced the use of petroleum. I have vague memories of people claiming it would, but I really don't think so. In fact, I think petroleum use has likely increased due to online shopping.

Techno countries really got to get on the ball with all this waste.

(Note that I am not calling them "advanced" or "developed". Seems a bit rude to a country like Bhutan that has literally chosen actual proven sustainability as a nationwide policy and is actually carbon negative for it. Techno countries talk a lot of green, but all their talk does is release even more carbon.)