Driving Growth Through an Expanded Luxury Brand Offering
Hankyu Luxury is one of Japan’s largest luxury retail destinations, created through the redevelopment of the 5th and 6th floors of the Hankyu Umeda Main Store in Osaka and having opened in March 2025.
The redevelopment brought together 67 luxury brands across fashion, jewelry, and watch categories. The International Boutiques zone was expanded to approximately 1.6 times its previous size, with luxury brands showcased at one of the largest scales in Japan.
In addition to expanding in-store flagship boutiques for European luxury brands such as Louis Vuitton, Chanel, and Hermès, the space brings together a wide range of jewelry and watch brands to create a one-stop luxury shopping destination for both domestic and international affluent consumers.
Hankyu also enhanced its service offering with concierge services, VIP rooms, lounges, and multilingual support, with the goal of elevating the customer experience.
Encouraging Visitors to Shop Across Multiple Luxury Brands
This initiative is significant because Hankyu invested not only in expanding its luxury offering, but also in creating an environment that supports product comparison and enhanced customer service.
Hankyu Luxury is organized into three zones—Fashion, Jewelry, and Watches—and features notable retail concepts, including Japan’s first stores for Schiaparelli and Létrange, as well as flagship-scale boutiques for Louis Vuitton, Chanel, and Hermès. In the Watch Lounge, customers can compare products with the support of dedicated attendants. Additional service capabilities include concierge services, attendant services for affluent customers, multilingual support, and VIP rooms. Most luxury boutiques housed in this Flagship feature private VIP rooms where customers can comfortably compare high-value products such as fine jewelry and watches. Hankyu also offers personalized hospitality, including champagne and catering services in select VIP spaces. For international visitors, dedicated attendants provide guided shopping support throughout the store, demonstrating Hankyu’s strong focus on elevating the customer service experience.
What differentiates this initiative is its ability to combine the immersive brand experience typically found in standalone flagship stores with the convenience of comparing multiple brands within a department store setting. While many retail destinations focus on attracting traffic through new brand openings or limited-time events, Hankyu has made consultations and service capabilities a core part of its competitive strategy.
Since opening, the initiative has improved purchase conversion rates and average transaction values, while demand from domestic high-net-worth customers has exceeded expectations, making it a key growth driver for the Hankyu Umeda Main Store. International affluent visitors have also responded positively to the concierge service. These results suggest that Hankyu Luxury’s investment in customer experience, alongside brand expansion, has contributed meaningfully to its success.
Curated Department Store Shop-In-Shop Can Offer More Than Standalone Retail
The most important lesson that can be learned from this case is that expanding a brand portfolio or product assortment alone is not enough. Investing in the overall customer experience can be equally important.
Alongside bringing together 67 luxury brands, Hankyu introduced concierge services, lounges, multilingual support, and VIP rooms to create an environment where customers can more easily compare products and navigate the shopping journey. As a result, purchase conversion rates and average transaction values increased, while spending from domestic affluent customers exceeded expectations.
For foreign companies entering the Japanese market, opportunities may exist beyond standalone stores or e-commerce channels. Combining services such as expert guidance, appointment-based consultations, multilingual support, and membership programs can help strengthen the customer experience. In addition, Hankyu Luxury features Japan-first and world-first store concepts as well as exclusive product launches, creating new opportunities for customers to discover products and brands. Foreign companies may be able to apply a similar approach through Japan-exclusive products, limited-time events, or other unique experiences that encourage store visits and purchases.
This case suggests that in Japan, success may depend not only on what a company sells, but also on the experience it creates around the purchase. The way products are presented, explored, and purchased can play an important role in attracting customers and driving sales growth.
The store achieved its highest March sales on record, surpassing the previous record set in the prior year.(2026年 3月度 売上速報)
Sales of high-ticket luxury items priced above ¥1 million increased by approximately 60% year-on-year(2026年 3月度 売上速報)
Spending by domestic affluent customers exceeded expectations (specific figures were not disclosed).
International affluent customers responded positively to the concierge service.
Hankyu Umeda Main Store and Hankyu Men's Osaka are projected to generate **¥403.8 billion in gross sales in FY2026 (ending March 2027), representing a 15.8% year-on-year increase.




