Kenmin Hyakkaten

Kenmin Hyakkaten (株式会社県民百貨店), also styled Kumamoto Kenmin Hyakkaten, was a Japanese department store located in Sakura-machi, Chuo-ku, Kumamoto City, Kumamoto Prefecture. It occupied a major facility within the Kumamoto Kotsu Center, one of Japan's largest bus terminals, which had been built on the former site of the Kumamoto Prefectural Government office. The store was directly connected to the bus center, the adjacent Kumamoto Kotsu Center Plaza, and the underground passage to Karashima Park, giving shoppers convenient access to the surrounding commercial district, including the Sunroad Shinshigai arcade. Its glass-walled rest areas on floors two through nine and its observation elevators offered views over central Kumamoto and Kumamoto Castle. The store's origins lie in the Iwata-ya Isetan Shopping Center, which opened in 1973 as a joint venture between Isetan, Kyushu Sangyo Kotsu, and the Kumamoto Kotsu Center. Local opposition from the Kumamoto Chamber of Commerce and Industry initially forced it to open as a shopping center rather than a department store, and it only converted to department store operation in July 1974. After Isetan withdrew in March 1993, the store continued as Kumamoto Iwata-ya, later coming under Kurume Iwata-ya, and accumulated large losses. Iwata-ya announced its closure in April 2002 and shut the store on February 11, 2003. A group of local businessmen—Joji Matsumoto, a former Kumamoto Iwata-ya employee then at Kurume Iwata-ya; Masafumi Hashimoto, president of the printing cooperative Sancolor; and Fuminori Marumoto, founder of the housing company Sears Home—established Kenmin Hyakkaten Co., Ltd. on October 25, 2002, with capital of 11 million yen. With support from the prefecture and a business tie-up with Hanshin Department Store, the new company reopened the store just twelve days after Iwata-ya's closure, on February 23, 2003, as Kumamoto Hanshin, inheriting most of the premises and employees. Hanshin provided merchandising, personnel training, and trademark support, and the store ran a popular free-membership card. It recorded first-year sales of 16.6 billion yen and ordinary profit of 530 million yen, and remained profitable for most of its life. As Hanshin's parent merged with Hankyu Department Store and support gradually declined, the store ended its business tie-up and renamed itself Kenmin Hyakkaten on February 23, 2011, dropping the Hanshin trademark. It then joined the Takashimaya-centered Highland Group. The store faced the redevelopment of the Sakura-machi district, which included its own site, and ultimately closed. Kenmin Hyakkaten was a locally rooted department store known for its food floors, its Kumamoto Castle views, and its role as a commercial anchor of the Kumamoto Kotsu Center.

The store that became Kenmin Hyakkaten opened on October 20, 1973, as the Iwata-ya Isetan Shopping Center, a joint venture of Isetan, Kyushu Sangyo Kotsu, and the Kumamoto Kotsu Center, located within the newly built Kumamoto Kotsu Center bus terminal at 3-22 Sakura-machi, Kumamoto City. Because the Kumamoto Chamber of Commerce and Industry's department store review committee opposed a new department store, it initially opened as a shopping center; it converted to department store operation in July 1974. It faced competition from local department stores such as Tsuruya and Taiyo, and struggled from the start. Isetan withdrew in March 1993, leaving Iwata-ya to operate it alone as Kumamoto Iwata-ya. Operations were transferred to Kurume Iwata-ya in February 2000, by which time cumulative losses had reached about 10 billion yen. After rent reductions from Kyushu Sangyo Kotsu, the store returned to ordinary profit in the fiscal years ending February 2001 and February 2002. Nevertheless, Iwata-ya announced the store's closure on April 9, 2002, and it closed on February 11, 2003. Even before the closure was announced, a plan for a management buyout had been explored, supported by building owner Kyushu Sangyo Kotsu but rejected by Iwata-ya. Joji Matsumoto, who had worked at Kumamoto Iwata-ya for a total of ten years and was then a manager in Kurume Iwata-ya's planning department, believed the store could be profitable with sales of 15 billion yen if the existing system and staff could be transferred smoothly. On March 28, 2002, he met his high school classmate Masafumi Hashimoto, president of the printing cooperative Sancolor. Two days later, Hashimoto and Matsumoto met Fuminori Marumoto, founder and president of Sears Home, and Marumoto agreed to join the effort. After Iwata-ya's formal closure announcement, approaches to Daimaru, Mitsukoshi, Hankyu, and Tokyu were unsuccessful, and the Kumamoto Chamber of Commerce concluded on August 13 that a locally funded department store would be difficult. The next day, August 14, Kumamoto Prefecture officials told Hashimoto the prefecture would support his plan. With Kyushu Sangyo Kotsu's consent and Iwata-ya's agreement to transfer the business, the three men visited Hanshin Department Store's Osaka headquarters in September. On October 1, Hanshin President Teruyuki Saegusa visited Kumamoto, where local political and business leaders—including Governor Yoshiko Oshiba, Mayor Yasuyuki Misumi, Chamber of Commerce head Shoji Miyajima, and Kyushu Sangyo Kotsu Chairman Yoichi Oka—appealed for support. Saegusa decided on the spot to support the plan. On October 25, 2002, Kenmin Hyakkaten Co., Ltd. was established with capital of 11 million yen. A petition with 136,500 signatures and a request letter from the governor helped secure Hanshin's board approval the same day. Marumoto became president and Hashimoto vice president. Financing included a 1.4 billion yen syndicated loan led by Mizuho Bank, and capital was increased to 400 million yen in January 2003, including a 30 million yen (7.5%) investment by Hanshin Department Store. On February 23, 2003, just twelve days after Iwata-ya closed, the store reopened as Kumamoto Hanshin, taking over most of the premises and employees. Hanshin sent executives and staff, and its subsidiary Hanshin Midorikai handled the customer club. The free Kumamoto Hanshin Card attracted 10,000 members on the first day. In its first year, helped by a Hanshin Tigers league championship sale that drew 300,000 people and added 400 million yen in sales and 100 million yen in profit, the store recorded sales of 16.6 billion yen and ordinary profit of 530 million yen for the fiscal year ending January 2004. It strengthened its food floor, creating the "Depa-ichi" on the first floor to compensate for the small basement. In the fiscal year ending January 2005, sales rose 0.6% to 16.674 billion yen, with ordinary profit of 73 million yen and net profit of 104 million yen. In April 2005, Hashimoto stepped down as representative director to become a part-time director, and Matsumoto was promoted to managing director. The store continued to renovate, and after five consecutive years of ordinary profit it received direct-operation approval from the Ministry of Economy, Trade and Industry in 2008; from September 1, 2008, its wholly owned Kenmin Hyakkaten Tomo-no-kai took over the customer club from Hanshin Midorikai. The fiscal year ending January 2009 saw sales fall 6.1% to 14.807 billion yen and the first ordinary and net loss since opening. In the fiscal year ending January 2010, sales fell 8.4% to 13.563 billion yen but cost cuts produced ordinary profit of 18 million yen and net profit of 6 million yen. In the fiscal year ending January 2011, sales fell 4.2% to 12.9093 billion yen, but ordinary profit rose 42.8% to 25.84 million yen, though net profit fell to 2.72 million yen. In April 2009, Marumoto retired as president and Matsumoto became president, with Marumoto becoming a counselor. From February 2010, the store operated without staff seconded from Hanshin. The business tie-up with Hanshin, originally five years, was extended by three years at Kenmin Hyakkaten's request, but support declined after Hanshin merged with Hankyu Department Store. Judging it could operate independently, the company let the contract expire and renamed itself Kenmin Hyakkaten on February 23, 2011, ending use of the Hanshin trademark. It joined the Takashimaya-centered Highland Group, while Hankyu Hanshin Department Store's 7.5% investment continued for the time being and the Hanshin Tigers Shop remained open. The store pursued local products, reopened a popular manju with a ginkgo brand, opened a 42-meter wooden open deck facing the street leading to Kumamoto Castle, and obtained a travel agency license to open a travel salon. Meanwhile, on June 16, 2008, Kumamoto Sakura-machi Redevelopment Preparation Co., Ltd. was established by Kyushu Sangyo Kotsu Holdings and Kyushu Sanko Landmark, beginning the redevelopment of the Sakura-machi district including the store's site. The adjacent Hanabata district redevelopment also proceeded. The store ultimately closed as part of this redevelopment.

• 2011

  Renamed Kenmin Hyakkaten and ends use of Hanshin trademark (February 23); joins Highland Group.

• 2010

  Store begins operating without staff seconded from Hanshin (February).

• 2009

  Marumoto retires as president; Matsumoto becomes president.

• 2008

  Receives direct-operation approval from METI; Kenmin Hyakkaten Tomo-no-kai takes over customer club (September 1).

• 2005

  Hashimoto steps down as vice president; Matsumoto promoted to managing director.

• 2004

  First fiscal year ends with sales of 16.6 billion yen and ordinary profit of 530 million yen.

• 2003

  Iwata-ya closes (February 11); store reopens as Kumamoto Hanshin (February 23).

• 2002

  Iwata-ya announces closure (April 9); Kenmin Hyakkaten Co., Ltd. established (October 25).

• 2000

  Operations transferred to Kurume Iwata-ya.

• 1993

  Isetan withdraws; store continues as Kumamoto Iwata-ya.

• 1974

  Converts from shopping center to department store operation.

• 1973

  Iwata-ya Isetan Shopping Center opens within the Kumamoto Kotsu Center.

A locally rooted department store in the Kumamoto Kotsu Center, initially supported by Hanshin Department Store and later affiliated with the Takashimaya-led Highland Group.

• Depa-ichi food floor

  First-floor food section with famous Japanese and Western confectionery shops, serving as a substitute for a basement food floor.

• Kumamoto Hanshin Card

  Free membership card that attracted 10,000 members on the first day.

• Hanshin Tigers Shop

  Kyushu's only Hanshin Tigers merchandise shop, continuing from the Hanshin tie-up era.

• 疲れないデパート。 (A Department Store That Doesn't Tire You Out)
• 一生青春百貨店 (Lifelong Youth Department Store)
• Hanshin Tigers championship sale

1. 1Kenmin Hyakkaten - Wikidatawikidata.org
2. 2県民百貨店 - Wikipedia (Japanese)ja.wikipedia.org