January 2025 marked the start of the New Year sales at major department stores across Japan, with the initial rush beginning on the 2nd. Notably, top stores like Takashimaya and Daimaru Matsuzakaya remained closed on January 1st and 2nd, responding to labor shortages by improving employment conditions and enhancing customer service. According to Takashimaya, their Nihonbashi store saw a remarkable 30 percent increase in both sales and customer numbers compared to January 2 of the previous year.
With many customers eager to buy items such as lucky bags and cold-weather coats, there was also notable movement in non-discounted merchandise. Shoppers increasingly prioritized needed items over prices, with spring-ready jackets and brightly colored sweaters becoming particularly popular. The inbound market remained buoyant, especially for luxury brands, with Matsuzakaya reporting sustained momentum from the previous year.
Another department store, Sogo Yokohama, which opened on January 1, also reported gains, with sales and customer footfall increasing by five percent. Witnessing nearly 10,000 people lining up before the store's opening, the increase of 20 percent signified changes in customer behaviors due to other stores not opening on January 1, which encouraged locals to shop closer to home.
On the opening day of Isetan Shinjuku, the store organized New Year celebration events and workshops aimed at families, attracting many visitors. Meanwhile, Tobu Department Store’s Ikebukuro location reported impressive attendance numbers, with 171,000 shoppers, of whom many were families enjoying the shopping experience together.
The trends this holiday season also reveal underlying economic dynamics. With inflation affecting consumer behavior, department stores strategized to offer combinations of food and daily essentials within their lucky bags, aiming for greater value and readability to entice shoppers. For example, Tobu Department Store adapted their lucky bag sales, increasing the number available on the floor by ten percent compared to the previous year, with around 20,000 bags set for sale.
Despite rising prices causing budget-conscious consumer behavior, shoppers expressed gratitude for the opportunities to purchase quality products at lower prices. A 70-year-old female customer at Tobu mentioned, “I really feel the pinch of rising costs, so I appreciate being able to buy things cheaper than usual.” This sentiment highlights how the increased focus on value-for-money products is shaping the retail outlook during this festive period.
Department stores are adjusting to the realities of staff shortages by pushing back their traditional opening dates. For example, Seibu Ikebukuro, which had been open on January 1 in previous years, launched its sales on the 2nd, with Takashimaya and Daimaru Matsuzakaya also moving their New Year's sales to the second or third. This postponement reflects broader labor market challenges affecting many retail sectors.
Beyond department stores, Osaka's Yasumitsu Baozi (安光包子) opened its new location on the 8th floor of the Osaka Takashimaya on December 13, blending street food culture with the upscale department store environment. Specializing in pork buns and night-time offerings of homemade char siu, the store was warmly welcomed, highlighting the growing trend of boutique and artisanal establishments entering major retail spaces.
The store’s owner, Masahiro Ohno, revealed he harbored ambitions of entering department stores since launching the original store back in 2022. He stated, “I’ve wanted to open inside department stores since day one and was surprised Takashimaya invited us to the restaurant floor. Since it has been our goal, we embraced the challenge.” Its restaurant atmosphere mixes quick-service takeout with sit-down dining, capitalizing on the space’s accessibility to both local shoppers and department store patrons.
These New Year's sales demonstrate significant shifts and adaptations made by retailers, responding to economic pressures and changing shopping habits, making this busy period even more reflective of Japan’s dynamic retail environment.