What: He will have to force the department store into digital age

Why is it important: Today, online sales account for less than 10% of the total business

Isetan Mitsukoshi Holdings has named one of its star executives who rebuilt operations in Malaysia and Japan to lead the company into the digital age. Toshiyuki Hosoya, who is now president of Fukuoka-based unit Iwataya Mitsukoshi, acknowledged the challenges traditional department stores face amid the pandemic and the rise of online rivals.

He began his career at Isetan in 1987, working in women's clothing and accessories and quickly emerged as a star player. But it was during a stint in Malaysia where he truly proved his leadership. Hosoya completely revamped this struggling branch, including an overhaul of its sales structure and customer service.

Since becoming president of Iwataya Mitsukoshi in 2018, he has made it a point to speak directly with its over 1 000 employees at roundtable discussions and other events. Under his leadership, Iwataya launched a unified, cross-department database for customer information, and entrusted employees with a range of responsibilities from customer service to inventory management. Both measures were later adopted by parent Isetan Mitsukoshi.

Isetan Mitsukoshi relies on its department stores for about 90% of its income, unlike many of its competitors that have diversified into new fields like property rentals. This means it was hit especially hard by the pandemic. The company is expected to log a JPY 45 billion (USD 422 million) net loss for the fiscal year ending March.

Embracing e-commerce is considered crucial to Isetan Mitsukoshi's recovery. Online sales currently contribute less than 10% of its total sales, but the chain began offering every product at Isetan's flagship Shinjuku store and other outlets for purchase online in Noveber.

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