As e-commerce grows and operating costs (especially rent and labor) continue to rise, large retailers are shifting from scale-based growth to a model focused on spatial agility and customer experience.Brands like Macy’s and Marks & Spencer are rethinking store strategy through OMO, smart selling, and Click & Collect.
“Sales-per-square-foot” and experience-first design now replace traditional display methods. To remain relevant, retailers must redefine store value and function to meet modern consumers’ demand for convenience, immersion, and aligned values.
Why We Selected This Case
In 2025, Ito-Yokado will close 33 stores across Japan, primarily in low-performing areas outside major cities—including suburban Tokyo, Hokkaido, Tohoku, and Shinetsu. Only its core locations in central Tokyo, Kanagawa, and Sapporo will remain operational.This consolidation highlights a pressing question for Japan’s retail sector:How can local-format stores avoid obsolescence in a shrinking market?
To explore this, we apply ADGo’s proprietary tools—Market Intelligence Sweep, Extreme Creative Brainstorm, and Marketing Concept Visuals—to map the future of community-based retail.
Market and Strategic Insights
01Market Intelligence Sweep
Japan’s aging, shrinking population makes “value density in daily life” essential for regional retail. Stores must become community hubs—offering local relevance, social interaction, and real-time service.
In Hokkaido, for instance, residents show strong local identity and community cohesion, value steady lifestyles, family, and healthy eating, and rely more on physical retail for both service and emotional connection. In this context, stores serve not just as purchase points, but as platforms for social bonding and lifestyle expression.
Digitalization, rather than replacing physical retail, should enhance local engagement. Leveraging membership systems to track household purchasing cycles or introducing appointment booking and neighborhood logistics features can significantly improve store sustainability and relevance.
06Extreme Creative Brainstorm→ 08Marketing Concept Visuals
Through 06Extreme Creative Brainstorm, we started with one clear prompt: “Generate a physical store concept for Ito-Yokado in Hokkaido that integrates shopping, interaction, culture, and daily life services.”
Using ADGo’s 08Marketing Concept Visuals, we created a hybrid retail experience combining groceries, dining, and community interaction. The design emphasized natural lighting, wood textures, and greenery—creating a warm, culturally rooted space that reflects localized and experiential retail transformation. Below are the five selected concepts:
- “Daily Fresh Table” Featuring 100% Hokkaido Ingredients Each day, a short cooking video featuring local ingredients is shared via social platforms, with chefs or producers introducing ingredient highlights. It offers daily cooking inspiration for locals and sets travel expectations for visitors. Integrated with e-commerce, it enhances lifestyle engagement and drives conversion.
- “Catch of the Day” Unboxing Show In partnership with local producers, in-store events showcase daily-caught seafood and fresh produce. The focus on freshness, transparency, and limited availability builds trust with residents and appeals to tourists seeking authentic food experiences. It also supports local farmers and strengthens brand-community ties.
- “Hokkaido Weekend Market” A mixed-use space featuring local produce displays, producer meetups, and home-style cooking workshops. For locals, it’s a weekend destination; for visitors, a cultural touchpoint and gift-shopping stop—turning the store into a vibrant community hub.
- “Dialogue Between the Planet and Ingredients” An ESG-focused initiative promoting food sustainability. Under the theme “Ingredients nourish you—and the land,” it includes food waste recycling, eco-bag usage tracking, and a points-based rewards system. Participants receive branded gifts, deepening eco-conscious engagement and generating media visibility.
- “Hokkaido Healing Care Pack” for the Weary A limited-edition care package featuring local items like ice cream, honey, and milk, along with a handwritten thank-you card from the producer. Available online, the pack creates emotional value through a human touch—connecting product with place and people.
ADGo Execution Process
With a clear direction already established during 01Market Intelligence Sweep, we applied the 06Extreme Creative Brainstorm framework—specifically the IDEA Explore module—to rapidly generate initial concepts tailored to the brand and store format.Although the starting point was a regional store in Hokkaido, the outcome was not a one-off solution.
Using ADGo’s marketing tools, we developed a strategic prototype that can be quickly replicated and adapted across various physical store contexts.Whether addressing regional cultural nuances or navigating spatial and resource constraints, ADGo enables the creation of concrete, visualized, and actionable retail transformation plans within an hour—accelerating innovation and scalable execution even in contracting markets.