News On Japan

Japanese Chains Embrace Hybrid Stores to Revive Sales

SAPPORO - Matsuo, operator of the Matsuo Jingisukan chain, has embarked on a surprising new venture by opening its first specialty shoe store last week in Atsubetsu Ward, Sapporo, selling footwear instead of lamb.

President Yoshihiro Matsuo acknowledged the surprise surrounding his company's new venture into shoe retail, a move that puzzled both customers and observers familiar with Matsuo Jingisukan’s long history as a marinated lamb producer and restaurant operator since its founding in 1956 in Takikawa, Hokkaido. Responding to pandemic-driven challenges, Matsuo decided to diversify beyond food service, signing a franchise agreement with Skechers to open Hokkaido’s first specialty store for the brand, offering over 600 shoe types featuring easy-to-wear Slip-Ins technology.

Visitors welcomed the convenience of Slip-Ins, and Matsuo emphasized how the shoes suit Japan’s culture of frequent shoe removal, expressing excitement about building a new market. This footwear business joins Matsuo's other post-2014 expansions, including ventures into Chinese dim sum, Western confectionery, and sheep farming, all supported by recruiting experienced apparel staff and implementing thorough pre-opening training.

Meanwhile, the izakaya chain Tsubohachi is also adapting to the post-COVID landscape by launching "hybrid stores" that combine traditional izakaya menus with yakiniku offerings under one roof. At the new Kitano-dori branch in Kiyota Ward, Sapporo, customers can enjoy grilled Hokkaido kuroge wagyu beef and izakaya dishes at the same table, an approach developed to address the sharp decline in late-night and multi-round dining.

The hybrid concept, now expanded to nine locations in Hokkaido, has been well-received by customers who appreciate the wider selection, and has helped boost sales by 20–30% compared to standard stores. Tsubohachi plans to continue expanding this hybrid format to better align with changing customer habits in the post-pandemic era.

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