What: Ahead of the Olympics, Tokyo enters its fourth pandemic-related state of emergency.

Why is it important: As borders are closed, department stores Matsuya and Isetan are developing omnichannel strategies to engage with local customers and try to benefit from the Olympics anyway.

The government is asking that department stores, bars and restaurants close by 8 p.m. and do not serve alcohol. With the country’s borders now closed, department stores are getting creative with how they appeal to domestic customers.

Matsuya Ginza has started online customer service, not only sales, but also showing what is going on in the store. Efforts are put in e-commerce and delivery services for cosmetics and food by taxi and bike. For the overseas customers, the retailer does live commerce through WeChat. Matsuya do not do direct Olympic-related campaigns, but will offer special events relating to Japanese culture such as Pokémon events. They will also sell sets of food and drink for the people watching the Olympic Games at home.

Isetan Mitsukoshi is taking similar measures. In November the company launched a remote shopping app designed to provide customers with an in-store shopping experience online. The app includes a chat feature, the ability to consult with sales staff via video, and even a payment platform. They are also publishing content that addresses customers’ interests: for instance, buyers introduce curated product selections. For its fiscal year that ran from April 2019 through March 2020, Isetan Mitsukoshi’s online sales were around JPY 20 billion. For the following year, they grew to JPY 31.5 billion.

Japan’s Retailers Brace for Spectator-free Olympics