Digital Transformation: Breathing New Life into Japan’s Traditional Shopping Districts

The onslaught of large shopping centers coupled with the ongoing effects of the three-year Covid-19 pandemic has left a trail of shuttered storefronts in Japan’s traditional shopping streets. These time-honored hubs, once bustling with life, now seem like forgotten relics of a bygone era. However, there’s a ray of hope — these streets are embracing digital transformation in an attempt to revive their past glory.

One notable instance is the Osu shopping street near the JR Nagoya Station, a commercial district dating back to the early 17th century. With the leadership of Daizo Taio, the president of the street’s board, Osu shopping street has embarked on a digital revamp, introducing innovative ways to entice the younger generation. Their main tool? A mobile app called “Digital Fortune Slip”.

Yuuko Kikuchi, a thirty-something white-collar worker who had just stepped out of a cafe called Nagoya, showed off her phone’s screen — filled with discount coupons and notifications about seasonal promotions exclusive to the shopping street. “Having all the coupons, loyalty cards, and promotions on my phone makes me want to wander in and see what’s good,” she explains. The perks Kikuchi enjoys come from an app developed by a startup named Toipo. This app not only collects points from…