Renovated Ginza Mitsukoshi department store boosts appeal to younger shoppers
Customers relax on a ninth-floor terrace of the newly refurbished Mitsukoshi Department Store's Ginza outlet in Chuo Ward, Tokyo, on Sept. 11. (Mainichi)
(Mainichi Japan) September 11, 2010
The renovated Mitsukoshi department store in Tokyo's Ginza district opened on Sept. 11 with additional floor space and more youth-oriented features.
The move comes amid the ever intensifying competition among stores to attract more customers in the upscale shopping district, with the Lumine commercial complex becoming most likely to replace the Seibu department store's Yurakucho outlet after the latter closes at the end of this year and other nearby rival stores coming up with various promotion measures.
According to Isetan Mitsukoshi Holdings, the Mitsukoshi department store in Ginza will have a 12-story annex that will be connected to the main eight-story building from the third through eighth floors as well as at the basement. The combined floor space will be about 36,000 square meters, or 1.5 times the original space, becoming the largest department store in the Ginza and Yurakucho area.
A clothing shop in the Mitsukoshi department store's Ginza outlet in Tokyo's Chuo Ward features a cafe to attract younger customers. (Mainichi)
The renovation, which is aimed at expanding the customer base mainly among younger generations, is the first full-scale project for Isetan Mitsukoshi Holdings since the business integration of Mitsukoshi and Isetan department stores in 2008 and will "put the true value of the integration to the test," according to Isetan Mitsukoshi Holdings President Kunio Ishizuka.
As part of its efforts to attract more female customers in their 20s and 30s, the remodeled Ginza Mitsukoshi will allow for more discretion among sales staff in each shop in the department store in selecting which products they will purchase and sell, a method adopted by Isetan. Another Isetan feature of abandoning partitions between neighboring brand stores will also be introduced.
Following Ginza Mitsukoshi's offensive, other department stores in the area are also desperate to boost their appeal to younger shoppers. The Matsuya department store in Ginza renovated its floors selling clothing lines for young women while launching a new space featuring brand products for women in their 20s and 30s at the Ginza Inz 2 shopping mall near the department store on Aug. 25.
The Matsuzakaya department store has already opened its "Forever 21" fast fashion boutique in its Ginza outlet, while opening in October the "Ufufu Girls" brand shop of clothes for women in their 20s and 30s, which became a hit at the Matsuzakaya group's Daimaru department store in Osaka's Shinsaibashi district.
The Takashimaya department store in the Nihonbashi district, about 1.5 kilometers away from Ginza, has also introduced a child clothing line from a Northern European brand amid concerns that the store's predominantly family-based customers could switch to stores in Ginza.
On Sept. 8, Lumine became most likely to succeed the Seibu department store premises in Yurakucho after its Dec. 25 closure and is set to open a new outlet there in the fall of 2011. A subsidiary of East Japan Railway Co. (JR East), Lumine currently operates 13 outlets mainly at major train stations in the Tokyo metropolitan area, featuring youth-oriented fashion brands. The Yurakucho outlet will be Lumine's first venture outside train stations.
Year-on-year sales at department stores nationwide dropped for the 29th consecutive month in July.
A senior official with a major department store expects that Ginza Mitsukoshi's renovation will "prompt department stores to draw renewed attention from customers," but the emerging budget apparel stores in the Ginza district, including Uniqlo and H&M, are threatening to foil such expectations. Lumine's foray into the Ginza and Yurakucho fashion market could further escalate the fierce competition between fast fashion apparel stores and conventional department stores.
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