Japan Dept. Store Sales:

 https://mainichi.jp/english/articles/20210123/p2g/00m/0bu/013000c

Article:

TOKYO (Kyodo) -- Department store sales in Japan in 2020 dropped a record 26.7 percent from a year earlier, sinking to its lowest level since 1975 due largely to dried-up demand from inbound visitors during the novel coronavirus pandemic, an industry body said Friday.

Sales by all department stores totaled 4.22 trillion yen ($40.73 billion), the Japan Department Stores Association said. The decline was the largest since comparable data became available in 1965. Sales on a same-store basis sank 25.7 percent.

The sharp drop came as stores temporarily closed during the state of emergency declaration last April and duty-free sales dived 80.2 percent from the previous year, the association said.

Ideas:

Its amazing that in just a few short years, since the government revised in immigration policies to allow more tourists from Asian countries and especially China, that some or many department stores in the Tokyo area became almost completely dependent on international tourism to survive.

Of course the closing of stores in April of 2020 didn't help but at the same time, a 90+ percent drop on tourists from China didn't help either.

It just  shows, yes difficult, how department stores need to diversify their customer base, and if possible not rely on one group such as Chinese tourists who seem to really like Japanese products.

But of course that is easier said than done and how can a department store really diversify?

Of course, if not already doing or implementing, department stores need to have more of an online presence. And even more, if possible, have a online presence in Chinese and English as possibly Chinese customers might actually buy from the Japanese department stores while they are in China.

And then the department stores need to collaborate with logistics companies to get the Japanese products to China in a timely manner.

I'm sure the department stores have thought about all of this already.

Article:

Sales at stores in 10 major cities including Tokyo and Osaka on a same-store basis tumbled 28.1 percent, while those in other regions dropped 19.4 percent.

By product, clothing sales sank 31.1 percent as demand for suits and dresses shrank due to increased teleworking.

Sales of luxury products, such as artwork and jewelry, fell 22.8 percent. The decline was not so large compared with other products as wealthy individuals apparently spent money on luxury products instead of on traveling due to the pandemic.

In December alone, sales on a same-store basis fell 13.7 percent from a year earlier. The decline was smaller than that in the previous month due partly to strong demand for "osechi" New Year dishes as the pandemic forced people to spend more time at home.

In the first 18 days in January, sales at 41 major department stores sank about 35 percent due partly to shortened business hours after the second state of emergency was declared in early January.

Ideas:

Most likely sales at department stores will continue to decline for the time being, until consumers feel more positive about the future.

For the time being though, consumers are worried about jobs, income etc. and not as interested in going to brick and mortar department stores.

They might however, if they have some extra income to spend, might shop online for products and services they might need or want from departments stores.

So again, to try and regain lost sales or lost customers department stores, like other places such as restaurants, supermarkets, and other places need to have the best online presence with as many products available for online purchases.

And then of course collaborate with as many logistics companies as needed to make it easy for consumers to get the products the want in a timely manner.

Unfortunately, but not completely, consumer shopping might be heading to a substantial presence online instead of shopping in a brick and mortar store.

However, the idea that an Amazon or Rakuten can completely replace the brick and mortar shopping experience is unrealistic as consumers want to be in stores, be around other consumers/people, and want the personal customer service at times.

So most likely a blending or a balanced consumer shopping experience, for consumers as they want; sometimes online shopping experience  and sometimes a brick and mortar shopping experience.

But department stores need to be able work in both modes in order to maximize customer sales.