The retail and food service industries are exploring new business ideas with an eye on the current declaration of a state of emergency expiring on May 6. It is expected to be difficult for them to offer the same services as before for the time being, because vigilance will likely stay in place against the new coronavirus.
Since the government declared a state of emergency on April 7 following the spread of the virus, many retailers and restaurants have been effectively forced to close temporarily or shorten their business hours. In the food service industry, an increasing number of companies are focusing on home-delivery services because few customers dine at their establishments as many people refrain from going out.
Denny's has remodeled one of its outlets in Shinagawa Ward, Tokyo, to reopen on May 11 as the restaurant chain's first place dedicated to home-delivery services. This remodeled outlet will handle delivery orders that nine others in its neighborhood will receive, while comissioning deliveries to Demae-can Co., Uber Eats and other service providers.
"We had been studying [this system] before," said an official at Seven & i Food Systems Co., which operates Denny's. "But we accelerated our work because the demand for delivery services is increasing due to the spread of the [coronavirus] infections."
For department stores, it will be a challenge as to how to fully resume operations when the emergency declaration is lifted.
Sogo & Seibu Co. has already decided to cancel events at their stores through the end of May. Although events such as fairs featuring regional specialty products are an important tool to attract customers, department stores will still need to discourage customers from crowding for the time being.
They will also surely find it difficult to continue the traditional sales approach at beauty counters, at which staff touch customers' skin to check its condition and suggest suitable products.
Shiseido Co. and Kose Corp. are among cosmetic companies that have already introduced new services such as skin checking using artificial intelligence and advanced technology.
"It is necessary to put more focus on developing sales methods that do not involve directly touching customers' skin," an industry source said.
Apparel companies are sitting on large stocks because they can't sell the bulk of spring clothing amid the closures of department stores. "We used to develop products with our focus on [selling at] department stores," said Shinji Oe, vice president of Sanyo Shokai Ltd. The company plans to boost its online sales, a field it has lagged behind so far, he added.
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