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I happened to stop by the “department store that will go bankrupt in 6 days”. Disappearing local department stores, is the cause not only competition?

Posted on 2024-09-062024-10-22 by Editor in Chief

Too sudden closure or bankruptcy. What happened to the prestigious department stores? In the past, each city in Japan had a department store that was a symbol of its area, as a matter of course. However, the long-standing stagnation of the department store business, the hollowing out of urban areas, and the outflow of customers to suburban GMS (general merchandise stores. However, due to the long-standing stagnation of the department store format, the hollowing out of urban areas, and the outflow of customers to suburban GMS (general merchandise stores, such as Aeon and Izumi), department stores are disappearing in all areas. In Hirosaki City, Aomori Prefecture, with a population of approximately 170,000, the Nakasan Hirosaki Store, which had been in operation since 1962, was a representative of the “iconic department stores” of the area. However, on August 29, 2024, the Aomori District Court ordered the company that operated the store (Nakasan Co., Ltd.) to begin bankruptcy proceedings, and the Hirosaki store, which was the only store operated by the company, was completely closed the day before. I can only imagine how painful it must have been for the employees who lost their workplaces. In fact, five days before the store closed for the last time (August 24), the author stopped by the Chusan Hirosaki store while on another assignment. Of course, I had no idea that this would be my last visit, but now that I think back on it, some points come to mind that are quite suspicious. First, let’s trace back the memory of the “department store that suddenly closed five days later and went bankrupt six days later” just a few days earlier.

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