Department Stores Return To Six Day Week

[Mulboyne]

Asahi: 6-day Week for Isetan, Mitsukoshi
Isetan Mitsukoshi Holding Ltd. announced over the weekend that it will revive its custom of closing its department stores for one day once a week. Under measures to take effect as early as April, it said it would also cut back operating hours. The operator hopes to save some 2 billion yen a year by reducing staff and utilities costs, officials said. Sales at Isetan and Mitsukoshi flagship stores dropped around 10 percent in the first half of December from the same period in 2007. Currently, only New Year's Day is a fixed holiday at both Isetan and Mitsukoshi stores. The two chains scrapped their weekly closed days in 2000. Department stores had reduced shop closing days while extending operating hours since the 1990s.

[james]

this is an interesting development and i wonder if we'll see other stores follow suit. out here some electronics retailers (yamada, deo-deo) cut back their closing times and pushed forward their opening times which seems to be a logical first step. i can't imagine what their utility bills must be having all of those electronics and lighting on all day.

not sure how it was in the big cities but when i first got here many stores were typically closed on wednesdays.

[Mulboyne]

...not sure how it was in the big cities but when i first got here many stores were typically closed on wednesdays.

It was the same in the cities. I can't remember if each story closed on the same day or whether they chose different days but all were open on Sundays. Sunday closing was still common in Britain when I first arrived in Japan so that was just another local quirk which helped keep me off balance.

[omae mona]

It was the same in the cities. I can't remember if each story closed on the same day or whether they chose different days but all were open on Sundays. Sunday closing was still common in Britain when I first arrived in Japan so that was just another local quirk which helped keep me off balance.

In fact, if I recall, department stores in the same neighborhood would tend to close on the same day. They certainly wouldn't want to accidentally introduce competition amongst themselves!

[Mulboyne]

In fact, if I recall, department stores in the same neighborhood would tend to close on the same day. They certainly wouldn't want to accidentally introduce competition amongst themselves!

I think shops in some local districts would close on the same day but I seem to remember finding Mitsukoshi in Nihombashi closed while Takashimaya was open when I had some shopping to do. Digging around on the net, I found this page which might even have been out of date when it was created. It says "All stores close for one day sometime during the week", which hasn't been true for years, and goes on to list the various store holidays. It seems Isetan used to close on Wednesday while Mitsukoshi closed on Mondays. It would make sense for the combined company to choose the same day off but they might yet stick with the old store schedules.

[omae mona]

Maybe it varied by neighborhood. But my recollection (and Mrs. Omae Mona's) may just be due to a coincidence. We remember Seibu, Tobu, and Takashimaya in Ikebukuro being closed on the same day. But if the page you posted is accurate, that just happened to be the closing day for all three chains of stores. It does seem that Wednesday was the most popular closing day.

[GomiGirl]

On my first trip to Japan in '87, all the stores in Matsudou closed on the same day.

[canman]

The depato's all used to close here on Tuesdays. I have no problem with that system being re-introduced. I would also like to see more places stay closed longer as New Years giving the workers and everyone more time to relax. But I know that Japanese like North Americans love to shop, and since TV is so crap and there is really nothing else to do people need some escape.

[james]

and since TV is so crap and there is really nothing else to do people need some escape.

it never ceases to amaze me that a country that produces such fine tvs and displays produces such utter tripe to be rendered on them.

[Mulboyne]

...I would also like to see more places stay closed longer as New Years giving the workers and everyone more time to relax...

They used to close for longer but, just as with Golden Week and Obon, shoppers aren't really inconvenienced so much anymore.

[Jack]

In fact, if I recall, department stores in the same neighborhood would tend to close on the same day. They certainly wouldn't want to accidentally introduce competition amongst themselves!

It is competitive which is why the close on the same day. People say there is no competitition which is why gas prices are the same everywhere. No, it is the same because of competition.

[omae mona]

It is competitive which is why the close on the same day. People say there is no competitition which is why gas prices are the same everywhere. No, it is the same because of competition.

I'd be fascinated to hear your theory. I can understand the argument for gas; presumably you think competition drives prices down to the lowest price where they are willing to keep operating their business given the small margin they earn.

Why, though, would department store A not open on Thursday when its neighbor B is closed (assuming its goal is to maximize profits without colluding with B?

Also, not to rain on your parade, but here are a few facts which you should consider when you explain your theory:

* We've established that department stores are actually not always closed
on the same day. My original recollection was wrong. So do you believe
that by closing on different days, the stores are colluding with each
other rather than competing?

* In my neighborhood gas prices are different from gas station to gas
station. Is this the result of lack of competition? Collusion?

[GuyJean]

Considering this move, I go back to my original sentiment on department stores; I think they're making crap for money considering their overhead..



Related thread:
New No.1 Department Store

GJ

[FG Lurker]

The shops in Osaka's electronics district used to mostly close on either Tuesday or Wednesday. If you had to go down on either day half the places you wanted to go to wouldn't be open.

Hankyu and Hanshin also used to close on either Tuesday or Wednesday, sometimes they would both be closed on the same day, other times one would be open and the other closed.

Kinokuniya in Umeda used to close Wednesdays (I think). That was a royal PITA too because there were no other large English bookstores around at the time (a few smaller ones but nothing as large). With Junkudou around now it wouldn't be such a problem.

[IkemenTommy]

The operator hopes to save some 2 billion yen a year by reducing staff and utilities costs, officials said.

With that same logic, imagine how much cost they can save if they shut down 7 days a week!

On the other hand, did they ever consider the impact of lost revenues?

[Zeth3D]

On the other hand, did they ever consider the impact of lost revenues?

The only major incentive to absolutely buy something on a particular day is if the department store puts on a sale, which they wont on a day they plan to be closed. Its easy for buys to adjust their necessity for buy by 13 hours at the maximum (as in if you had the urge to absolutely buy something at 12 lunch time on a closed day, the longest you would have to wait would be concievably 13 hours). In otherwords sales will shift to the day before or after, not be lost completely.

So I would imagine the cost benefit ration is quite high for them to close only 1 day. They reduce operating cost and employee pay (which is almost always the greatest operating cost) while see only a slight drop in sales from a lack of one day.

But thats my take.

[Mulboyne]

But thats my take.

I think that's pretty much how the stores are thinking. Some were pinning their hopes on sales to tourists but the strong yen has killed that idea for now. Moreover, quite a few Japanese shoppers are now heading to Korea to spend their money. The yen gives department stores cheaper purchasing costs overseas but, in areas like clothing, the supermarkets and stores like Uniqlo tend to use that advantage to better effect. The department stores are already assuming sales will be weak in the future so most of their immediate moves will be addressing costs.

[Jack]

[quote="omae mona"]I'd be fascinated to hear your theory. I can understand the argument for gas]

Naturally to pick a day to close it would have to be the weakest shopping day of the week. Presumably Thursday to sunday would be the busiest shopping days given the weekend. I have noticed in the past, mostly in Osaka/Kyoto/Nara areas that stores close either on Tuesdays or Wednesdays (more on Wednesdays). If I was running a department store I would close on the same day as my competitor for two reasons: 1) to not confuse shoppers as they know that ALL the stores are closed on the same day -- say the Wednesday and 2) to make sure that I don't lose sales just in case the day that I pick to close my store happens to be a busier shopping day than when the competitor closes. Both are competitive motivations. I can guarantee you that if I analysed retail sales patterns in a particular area, chances are the day I would choose to close my store would probably be the same as what the competitors choose because we are looking at the same data and coming to the same conclusion that Wednesday is the slowest shopping day so that's the day we close.

As to your second question, it could well be that you noticed the price difference in the delay of price adjustment. Or that one station feels it is at a premium corner so is able to get away with a couple yen difference in gas prices. I cannot answer that unless I see the situation.

[FG Lurker]

As to your second question, it could well be that you noticed the price difference in the delay of price adjustment. Or that one station feels it is at a premium corner so is able to get away with a couple yen difference in gas prices. I cannot answer that unless I see the situation.

Gas station prices here often don't make much sense at all. Two gas stations within a few hundred metres of each other, both offering full service and with similar quality of gas can have prices that differ by 10yen a litre or more. The even weirder thing is that both places will get business.

[Mulboyne]

...quite a few Japanese shoppers are now heading to Korea to spend their money...

From the ChosunIlbo:

..."It's very interesting and surprising. I have been working for Cartier for eight years, and it is the first time that sales to Japanese tourists surpassed that of Korean customers," said Park Ji-hoon, a manager at the Cartier Maison in Cheongdam-dong, a high fashion district, in Seoul, showing the reporter a sales book for December. "A total of 150 Japanese tourists visited our shop in December, and snapped up rare items like rings and necklaces that cost W20 to 50 million per item (US$1=W1,340). Some say the biggest beneficiary of the high-flying Japanese yen is not the Japanese, but luxury shops in Cheongdam-dong," said Park...

[Mulboyne]

[floatl][/floatl]2008 saw the first time Japanese consumers spent more in convenience stores than department stores. Although trends have been pointing in that direction for some years, sales at convenience stores were helped by the "Taspo effect" which boosted cigaratte sales. Supermarket still have the largest sales by category of retailer.

[Mulboyne]

Yomiuri: Mitsukoshi considering shorter store hours

Mitsukoshi, Ltd. is considering shortening business hours for some of its department stores by up to an hour, including its Tokyo flagship store in Nihonbashi, from April, it has been learned. The move is aimed at boosting the profitability of stores by shutting doors during the slowest hour of the day, which would reduce personnel expenses and utility charges. The management at the Nihonbashi store, which currently closes at 8 p.m., is studying the benefits of closing up to an hour earlier. The company also plans to shorten business hours at some other stores that have low customer levels in the morning or evening.

[IkemenTommy]

All I have to say is go conbini for slaving until the late hours selling underwears and other basic necessities.

[Mulboyne]

Mainichi: Department stores shorten business hours to cut costs

Amid declining sales due to the recession, department stores across Japan are planning to close earlier to cut electricity and other expenses, it's been learned. From next month, Isetan will close at 7 p.m. -- 30 minutes earlier -- at its four outlets, including Kichijoji store in Tokyo's Musashino. Mitsukoshi also plans to close an hour earlier at 7 p.m. at its Nihonbashi main store in Tokyo and Sapporo store in Hokkaido, while business hours at six other stores, including Chiba store, will be shortened by 30 minutes from April, officials said. "There is a possibility of applying similar measures to other stores," a Mitsukoshi official said. The company, which expects to save 2 billion yen a year through the measures, also plans to add up to five extra holidays a year at four other stores. Other stores following suit are Takashimaya, which will shorten opening hours at two stores in the Tokyo area; Kyushu-based Izutsuya, and Saga Tamaya in Saga Prefecture, which also plans to close one day per month in addition to New Year's Day. In Japan, most department stores operate from 10 a.m. through 7 or 8 p.m. throughout the year, closing only on New Year's Day. However, due to fewer customers at stores in suburban areas, especially on weekdays and at night, those department stores have been reviewing their business hours.

[prolly]

it's doubtful but perhaps stores will stop overpackaging everything, too. i don't need six different wrappings on my apple plus three differently designed bags to carry it in.

[Mulboyne]