What: Japanese department stores’ sales significantly rebound towards 2019 levels.

Why it is important: Isetan Shinjuku and Hankyu Umeda are doing particularly well thanks to luxury sales and personalized advice. At Isetan, 1/3 of sales are now made via personal shoppers and advisors.

Japanese department stores are experiencing a recovery from the pandemic's impact, with fiscal 2022 seeing a 16% increase in total sales. This growth is attributed to robust spending by young high-income earners in metropolitan areas.

Sales across 167 stores operated by 66 companies reached JPY 5.1 trillion (USD 35 billion), representing a second consecutive year of growth and recovering to 88% of the level recorded in fiscal 2019 before the pandemic.

Well-off shoppers, including young entrepreneurs and investors, are driving this trend, and luxury department stores like Isetan Mitsukoshi and Hankyu are benefiting from increased spending. Additionally, the resumption of group tours from China is expected to boost duty-free sales further.

Japan's young urban rich drive department store sales