A Shopping Experience Integrating Digital Technology and Physical Stores

「In fiscal 2025, customer identification steadily progressed, driven by a basic card with no annual fee, and membership of the app for overseas customers expanded. In fiscal 2026, we plan to establish CRM for overseas customers equivalent to that for domestic customers and begin integrating customer IDs for related businesses into Mitsukoshi Isetan IDs.」

「In addition to expanding sales in the online business, we achieved profitability through reforms to the earnings structure and are shifting to a structure capable of generating stable earnings.」

「In the online business, we have strengthened initiatives centered on category-specific sites. Sales at sites including the cosmetics site meeco and MOO:D MARK performed steadily, exceeding the previous-year period by double digits or more.」

「Category-specific sites, including ISETAN DOOR (scheduled food delivery), meeco (cosmetics), and the Mitsukoshi Isetan Furusato Tax Donation site, performed steadily, with results exceeding the previous-year period by double digits or more.」

「In the online business, we have strengthened initiatives centered on category-specific sites. The cosmetics site meeco and the furusato tax donation site, among others, performed steadily, with results exceeding the previous-year period by double digits or more.」

「As part of our online initiatives, sales through Mitsukoshi Isetan Remote Shopping, which connects group stores nationwide through remote customer service, exceeded both the previous year and plan and performed well. In REV WORLDS, a virtual city-style metaverse, we strengthened collaborative projects with physical department stores and external companies and expanded functions such as avatar accessory fitting. Cumulative downloads grew steadily, substantially exceeding plan.」

「Online sales using the cosmetics e-commerce site meeco, remote shopping, tablets and other digital tools exceeded both the previous-year results and the plan, particularly.」

「In the domestic department-store business, from February 2022 we introduced and began trialing the Mitsukoshi Isetan App and Mitsukoshi Isetan Remote Shopping App, which had first been introduced at stores in the Tokyo metropolitan area, at department stores across the Mitsukoshi Isetan Group. We worked to establish coordination between stores and increase the number of connected individual customers and their spending.」

「As part of efforts to improve customer experience through digital transformation, we expanded the departments covered by the Mitsukoshi Isetan Remote Shopping app, which provides an online shopping experience similar to that of a physical store, and worked to improve customer convenience.」

「We are pursuing digital transformation to provide a seamless customer experience integrating physical stores and online channels. We have worked to improve customer convenience by launching online reservations and in-store pickup for events and by selling products through Mitsukoshi Isetan Remote Shopping.」

「For example, at the Mitsukoshi Nihombashi Main Store, we connected with customers through online live streaming from an event space that was closed at the time and sold works by a renowned illustrator exclusively through e-commerce. The initiative was well received.」

「In November, we launched and began trialing the Mitsukoshi Isetan Remote Shopping app, which provides an online shopping experience similar to that of a physical store. The app has been well received as content allowing customers to enjoy department-store-style One to One service from home. As a further new initiative, we launched REV WORLDS, a smartphone app that allows users to converse and shop with one another in a virtual city environment.」

「In November, we launched the new Mitsukoshi Isetan Remote Shopping app. Online, customers and sales staff communicate interactively to provide department-store-style One to One hospitality and product recommendations comparable to the shopping experience in a physical store, meeting customer needs. Customers can receive assistance through chat, and can now complete purchases in the app from home for almost all products available at the Isetan Shinjuku Main Store. We plan to expand the service to all stores.」

「For example, at a remote sales event featuring a renowned calligrapher, we connected customers with the artist’s atelier and the art section of the Mitsukoshi Nihombashi Main Store, selling works completed live. We also offered One to One services that allowed customers to connect with sales staff from home, as well as services enabling customers to reserve online before visiting a store and receive assistance without waiting. These seamless initiatives were well received. In stores, we have also introduced a new customer-assistance method using the proprietary Mitsukoshi Isetan body-measurement service Match Palette, launched in July, which uses 3D scanning to measure the entire body and determine the customer’s body type.」

「In June, we released a new online website and app and are developing the infrastructure so that customers can receive equivalent services online and offline. We began our online sale earlier than usual and also started a One to one service that connects customers with sales staff from their homes.」

「In June 2020, we launched a new integrated website and app. By using the new app, we aim to enable customers to purchase online products centered on the leading brands carried by the Isetan Shinjuku Main Store. We started mainly with products from the Isetan Shinjuku Main Store and will expand and enhance the range to include a broad selection of products, including items that cannot be stocked in stores.」

「In April 2020, we plan to integrate the multiple, currently ununified Mitsukoshi and Isetan websites and apps, consolidate shopping and store-event information on a single platform across the two banners, and integrate customer touchpoints, thereby preparing to promote a seamless experience.」

「We are promoting the integration of online and offline channels so that customers can purchase the same products available at our core stores online, and are rapidly digitizing product registration. We are also expanding online reservation services that allow customers to reserve assistance before visiting a store, so they do not have to wait, and these services have been well received.」

「To enable customers to purchase online the same products available at our core stores, we established a dedicated studio in Shinjuku in April and began registering products so that products carried by the Isetan Shinjuku Main Store can first be purchased through e-commerce.」

「Alongside the remodeling, under the new organizational structure, we will digitally register products offered in stores and promote the integration of online and offline channels so that customers can receive the same services and experiences in stores and online.」

「In addition to hospitality provided by our people, we began using new systems incorporating digital technology to provide customers with faster, more attentive service and assistance, and the systems are beginning to produce results.」

「In June, we launched the ISETAN DOOR scheduled home-delivery service business and worked to expand our points of contact with customers. We also entered into a strategic business partnership with JD.com, China’s largest retailer, and in September fully opened a store on the cross-border e-commerce site operated by JD.com. We will continue considering new services to offer online.」

「In the e-commerce business, we have worked to improve customer convenience by developing initiatives linked to our 3 core stores and expanding the products offered. Going forward, we will strengthen the business, including by expanding into new product categories.」

「In the e-commerce business, we have worked to improve customer convenience by developing initiatives linked to our 3 core stores and expanding the products offered. From January 2018, we began rolling out the Store App at Mitsukoshi Isetan branches and regional stores nationwide as a new promotional method for providing customers with information from each store. By allowing customers to select the store they normally use, the app delivers information from that store in a timely manner and also enables direct access to the online store from the app.」

「We will continue working to create new value by moving from an analog-centric model to the integration of physical and online channels through the use of digital technology.」

「We will also promote the integration of physical and digital channels and seek to improve customer satisfaction through ICT that makes shopping in stores more enjoyable and attractive proprietary services.」

「In the e-commerce business, we have worked to improve customer convenience by developing initiatives linked to our 3 core stores and expanding the products offered. Going forward, we will strengthen the business as a growth area, including by expanding into new product categories.」

「To strengthen management PDCA, we will develop infrastructure for pursuing profit and improving visibility, in addition to sales and gross margin. We will also promote the customer digital front and work to reform employees’ working practices.」

「In our e-commerce business, the group is integrating merchandise selections and services across the web and physical stores to create new value, customers and businesses. In November, we newly launched the Mitsukoshi Isetan website on Tmall Global, the e-commerce marketplace operated by Alibaba Group. We are establishing an environment for delivering excellent Japanese products directly to customers in China and will work with Alibaba Group as a strategic partner to serve Chinese customers.」

「We expanded the digital promotion previously conducted mainly at Isetan Shinjuku Main Store to 6 stores nationwide for Italy Week, commemorating the 150th anniversary of diplomatic relations between Japan and Italy. Under the concept of “experiencing Italian craftsmanship through all five senses using digital technology,” we are pursuing the fusion of fashion and digital technology by enabling customers to experience Italian streetscapes, music and cutting-edge fashion through VR and high-definition 4K video.」

「In our e-commerce business, we are working to improve customer convenience by integrating the merchandise selections and services of our group’s websites and physical stores. In June, we opened the luxury online store NOREN NOREN ISETAN MITSUKOSHI and are pursuing further expansion of the e-commerce business.」

「We have delivered new value by using continuously evolving digital technology. This includes new shopping experiences using the ISETAN Navi smartphone app and SENSY, an app equipped with artificial intelligence.」