Step Into Style with ABC-Mart

Let’s begin with the long history of Japanese footwear, which is well known around the world for its design, durability, and unique attention to detail. Many retailers aim to bring this tradition to a global stage. From your perspective, what are the distinctive qualities of Japanese footwear retailers? How does ABC-Mart, in particular, approach these qualities in its own business compared with retailers in other countries?

Japanese consumers have always been very particular about detail. Because customers are so demanding and discerning, retailers in Japan have essentially been “trained” by their customers’ high expectations. That has shaped the entire retail landscape here. Another key point is consumer etiquette and responsibility. For example, our online shoe sales have a return rate of only about 1.5–2 percent. In the United States, the figure is closer to 20 percent—about ten times higher. That speaks volumes about the conscientiousness of Japanese customers.

Culturally, Japan has long emphasized the importance of not inconveniencing others. This collective mindset, rooted in our education and daily life, encourages consumers to be careful and considerate. As a result, retailers must operate at a standard that meets or surpasses these expectations, which in turn elevates the entire market. There is a Japanese saying that everything “begins and ends with courtesy.” In retail, that translates into starting and ending every interaction with respect. At ABC-Mart, we place the greatest importance on this spirit of respect and on the sophisticated sense of etiquette our customers expect.

Store Exterior

Japan is facing significant demographic challenges, notably a declining and aging population. How do you view the domestic market in light of these trends, and what strategies are you implementing to address them? Do you see international expansion as an essential part of offsetting a shrinking home market?

Japan’s population peaked around 2008 and has been shrinking ever since, currently declining by roughly half a million people a year. Nearly 30 percent of the population is now over 65. However, the cultural shift in fashion works in our favor. I am about to turn 60, and my generation grew up with sneakers and casual wear as the norm. By contrast, those 10 years older were raised to see leather shoes and tailored jackets as standard. Because people’s clothing preferences tend to remain consistent throughout their lives—just like the music they loved in their youth—our market for casual footwear continues to expand even as society ages. That said, Japan’s economy has historically relied on domestic demand, so international expansion is becoming essential for growth. We view overseas markets as a vital part of our long-term strategy.

Inbound tourism to Japan is rebounding strongly, with projections of around 40 million visitors this year. Are you taking specific steps to target this influx of overseas customers?

Absolutely. Major global brands such as Nike, Adidas, New Balance, and Puma dominate the market, but we work with them to create exclusive special-makeup items—products available only in Japan. Shoppers love the excitement of finding something they cannot buy at home.

We also develop collaborations with cultural icons—Japanese anime, popular YouTubers and VTubers, musicians—that have strong international appeal. Moreover, we design products jointly with our teams in Korea, Taiwan, and Vietnam, releasing items simultaneously across these markets to build cross-regional excitement. Interestingly, we intentionally avoid covering our stores with multilingual signage. Many visitors come to Japan precisely to enjoy authentic interaction. Our staff communicate with enthusiasm—even if only in simple English—because genuine human connection is part of the shopping experience we want to offer.

Customer experience clearly matters deeply to you. How do you bring the spirit of Japanese hospitality, or omotenashi, into ABC-Mart stores both in Japan and overseas?

We ensure that overseas staff undergo training in Japan before starting work in their local markets. Even when we form joint ventures abroad, we send our own people to train teams on our service philosophy. In Japan, where many of our shoppers are foreign visitors, we focus on making the shopping process itself memorable. Instead of overwhelming customers with translations, we aim to communicate warmth and attentiveness through attitude and action. True hospitality transcends language.

ABC-Mart also develops its own brands, such as Hawkins and ABC Select, alongside selling global labels. Why did you decide to create proprietary brands, and what guides your design process?

Our origins were in wholesale—importing and supplying shoes to retailers. As the business evolved, we began manufacturing and eventually built our own retail operations. Around 2000, after Japan’s economic bubble had burst and many companies were struggling, we saw an opportunity to secure stronger margins and brand identity by creating our own lines. Developing in-house brands gives us flexibility. Global sneaker giants have their strengths, but they cannot always cover the highly specific needs of every local market—be it climate, fashion trends, or niche categories like pumps, leather shoes, or children’s footwear. Our private labels allow us to fill those gaps and design products tailored to regional preferences.

ABC-Mart Storefront

ABC-Mart’s share price has risen significantly, and last year you achieved record operating profits of about 60 billion yen. What factors are driving this performance, and how will you maintain it?

The foundation was laid during the pandemic. When our stores had to close, we used the downtime to make bold IT investments and overhaul systems. With lower daily sales, we could test new technologies more easily. We also continued opening new stores while many others paused. Those decisions have paid off as demand rebounded.

At the same time, sportswear has become far more fashionable, helping us grow sales of sneakers and athletic apparel. Our acquisition of Oshman’s, an outdoor and sports lifestyle retailer, is another growth driver: its sales have already more than doubled since we bought it in 2022. We will keep diversifying formats, for example by launching dedicated running and fitness stores.

You recently opened in the Philippines and now operate about 400 stores worldwide, with roughly 30 percent of revenue coming from overseas. Why did you choose the Philippines, and what are your broader plans for international expansion?

Southeast Asia has a booming sneaker culture. Among the region’s large, fast-growing economies, the Philippines—with more than 100 million people—stood out. Our duty-free sales data showed that Filipino travelers were already among the top spenders in Japan, which gave us confidence. We plan to open around six stores there by 2026, starting in Manila. Unlike some global chains that launch 40 or 50 stores in a new market regardless of performance, we proceed carefully, expanding store by store while ensuring profitability. Overall, we aim to raise our overseas sales ratio from today’s 30 percent to around 50 percent, focusing primarily on Southeast Asia while continuing to invest in Korea and Taiwan, where we have proven we can compete successfully.

International growth also strengthens our financial portfolio by diversifying revenue in multiple currencies. When we acquired the U.S. outdoor brand Danner (LaCrosse), for instance, the yen was around 80 to the dollar, giving us a valuable dollar-denominated asset. We judge performance in each market on its local-currency growth rather than short-term exchange-rate gains.

Looking five years ahead, what is your strategic vision for ABC-Mart?

Our priority is to build a strong, balanced portfolio of store formats. We already operate Grand Stage, ABC-Mart, Oshman’s, and the Billy’s sneaker boutiques, and we intend to add more concepts. Retail chains can easily saturate a market if they simply replicate one format. By tailoring concepts to urban or suburban locations and different price points, we can reach diverse customer groups and sustain long-term growth without creating our own ceiling.

Interior (including apparel)

Finally, we have a challenging question with a simple form: if you were to introduce ABC-Mart in just one persuasive sentence to our 75 million readers—40 percent of whom are in Asia—what would you say?

We are, above all, a company built on the principle of being present at the front line. Every Sunday and on holidays, all headquarters staff—including myself—work in our stores. This has been our practice for decades. Data can tell you what sells, but only firsthand experience explains why something sells. This commitment keeps our organization grounded and prevents the head office from becoming too removed from customers. It may sound simple, but staying connected to the shop floor is both the hardest and the most essential thing we do. Our business requires the support of both our customers and our suppliers, and we particularly value the brands we sell at our Grand Stage stores. For this reason, we regularly meet with the headquarters of national brands, and we are especially grateful for the cooperation we receive from Nike, Adidas, New Balance, and Puma. And yes—if you drop by a store in Shinjuku on a Sunday, you just might find me on the sales floor myself.

For more information, visit their website at: https://www.abc-mart.net/shop/