21COE, University of Tokyo

MMRC Discussion Paper No. 102

MMRC-F-102

Knowledge Transfer in Management of
Department Stores:
Centering on Transfer of“Buyers Manual” and “MD Notes”
Graduate School of Economics, The University of Tokyo
Nagoya University of Commerce and Business
MIYAZOE, Kenshi
October 2006

21COE, University of Tokyo

MMRC Discussion Paper No. 102

Knowledge Transfer in Management of
Department Stores:
Centering on Transfer of“Buyers Manual” and “MD Notes”
Graduate School of Economics, The University of Tokyo
Nagoya University of Commerce and Business
MIYAZOE, Kenshi
October 2006

Abstract: Literature concerning merchandising (MD), the core area as regards the managementof department stores, includes the “Buyers Manual” edited by the National Retail Merchants
Association. This manual was introduced into department stores in Japan, which wasrecovering from World War II. Among Japanese department stores, Isetan tried to transplant
the knowledge presented in the manual by reediting it into an in-house document entitled“Merchandising (MD) Notes.” Subsequently, both sets of knowledge materials weretransferred to multiple department stores when top Isetan managers moved jobs. Focusing onthese knowledge materials, the author analyzes the transfer of knowledge in the department
store industry.
Keyword: Knowledge transfer, merchandising knowledge, transfer from abroad, transfer
within the industry

1Miyazoe

1.

Preface

1-1.

“Buyers Manual” and “Merchandising (MD) Notes”

The materials in this study are the “Buyers Manual” created by the National Retail Merchants
Association (NRMA), and the “Merchandising (MD) Notes” based on the “Buyers Manual” editedby Isetan, a Japanese department store
The “Buyers Manual,” created by the National Retail Merchants Association (NRMA), concretely
describes all of the steps involved in merchandising in the retail industry from merchandise planning
through purchasing, merchandising assortment(assortment of merchandise), selling, sales promotion,
discounting, the numerical aspects of stock management, and even concepts of corporate
organization.1) Although it is called a manual, it does not describe practical procedures specific to any
single organization, but was instead co-written on the subject of merchandising by many practical
people representing the U.S. retail industry of the time, and it has been revised and republishedseveral times since it first appeared in 1930. As regards the 1957 edition, considered in this paper,
most of the writers were practical business people working in department stores, and it may better tocall it a theory of department store management, given that it discusses merchandising at department
stores in its entirety from the viewpoint of actual business.
This “Buyers Manual” attracted the attention of the management of Japanese department stores,
which were recovering from the damage caused by World War II. The first contact was made by
Isetan, which is a major Japanese department store. In 1951, President KOSUGE, Tanji III of Isetan(known at that time as Managing Director KOSUGE, Toshio) visited department stores in the U.S.
and Europe, and is said to have found and returned with the 1949 edition.2) The second contact was
Depato Shimbun Co., Ltd., the publisher of a trade journal for the department store industry.
OGAWA, Kyoichi then president of this publishing company, translated the 1957 edition publishedby the National Retail Merchants Association (NRMA) into Japanese, and made it available as athree volume series between 1961 and 1963. This translation was supported by SHIMIZU, Shigeru
then a member of the Research Department of Takashimaya, another major Japanese department
store.
“MD Notes,” the other material discussed in this study, was created while Isetan was working on
introducing and utilizing the knowledge presented in the NRMA’s “Buyers Manual”. Isetan focusedon their merchandise assortment and department deployment based on merchandise categorizationaccording to, for example, the concerns of consumers and merchandise use, and developed theseideas in their own way to define eight categories and twenty-three items (called “categorized2

Knowledge Transfer in Management of Department Stores

merchandising”).3) These categories were organized into a card book called “MD Notes” for buyers
and sellers to carry with them at all times. These “MD Notes” were utilized in Isetan’s merchandising
operations such as merchandise planning, merchandise assortment and stock control.
This study attempts to describe the actual situations in which merchandising knowledge wastransferred from the U.S. to Japan, and between Japanese department stores, by referring to the“Buyers Manual” and the resulting “MD Notes”. This illustrates an example of the active
introduction of knowledge from foreign department stores during the period of recovery of their
Japanese counterparts in the 1950s and 1960s. While the introduction of the “Buyers Manual” fromthe U.S. by KOSUGE of Isetan is noted in the corporate history of Isetan and is widely known among
researchers of the department store industry (Fujioka 2004 et al.), the existence of the Japanesetranslation of the “Buyers Manual” published by Depato Shimbun has gone largely unrecognized.
This is because the Japanese translation was sold by Depato Shimbun to department stores on amade-to-order basis, and there is no copy in the National Diet Library. During interviews on MD
knowledge transfer with department store staff, I came across a copy at the Tokyu Department Store.
This manual was available to every department store in the early 1960s, so it will not be a surprise tofind that many department stores other than Isetan referred to it. What were the actual situations ofknowledge transfer?

1-2.

Relationship between managers moving between department stores and MD

knowledge transfer
In the Japanese department store industry, management staffs sometimes move to a different
department store as shown in Chart-1 and Chart-2. First, YAMAMOTO, Munekazu who had been
involved in the internalization of the “Buyers Manual” and the preparation of the “MD Notes,”
moved from Isetan to the Tokyu Department Store (then Toyoko Department Store) (1963).4) Later,
YAMANAKA, Kan moved from Isetan to Matsuya in 1976, and then to the Tobu Department Storein 1990. How was the knowledge described in the U.S. “Buyers Manual” and presented in Isetan’s“MD Notes” transferred when these management people moved from Isetan? This study attempts to
explore the actual situations in which the tangible knowledge materials entitled “Buyers Manual” and“MD Notes” were transferred with an awareness of them.
It was about 50 years ago that the knowledge provided in the US “Buyers Manual” was introduced
into Japan. However, this knowledge transfer is not simply a management topic of the past related tothe history of the department store industry. I believe that this theme has remained alive from the3Miyazoedays of the fundamental restoration of department store management immediately after World War II
until today. Recently, managers with experience of merchandising at Isetan have moved to local

4Knowledge Transfer in Management of Department StoresChart‐1
The Moves of Executive Managers of Department Stores (1)
1950

1960

1970

1980

1990

Millennium
Retailing

Tobu

Mr. Yamanaka（1976)

Matsuya

Mr. Sano（2005）

2000

Mr. Yamanaka（1990）

Ｓａｎｏ
Matsuya Ｍｒ．
（2003）ADO Department Stores Group

IsetanMr. Yamamoto（1963）

Mr. Suzuki（1994）

Tokyu

KeikyuMr. Tsukada（1995）

Mr. Tanaka（1972）

SakumaIwataya Mr.
（2002）

Matsuzaka Mr. Kawanaka（2003）-ya
Kakei
Odakyu Mr.
（2004）

Daimaru

Mr. Mizuno（1987)

Mr. Sugino（1962)

OdakyuOdakyu(As of Feb.2005)

Chart‐2
The Moves of Executive Managers of Department Stores (2 )
1950

1960

1970

1980

1990

2000
Sakurano

Mr.Tawarada（2003）

Pritanmp

Mr. Sugiyama（2002）

Takashimaya

Keio

MR. Nakamura（1998）

Mitsukoshi

Ichibata

OdakyuSeibu

Okajima （2002）

Mr. Matsushita（1973）Usui

Mr. Sakakura（１９７4－1985）

Mr. Wada（2000）Sogo(As of Feb.2005)

5

Mr. Takazawa（2003）

Millennium
RetailingMiyazoe

department stores belonging to the ADO group (Isetan-sponsored nationwide business alliance groupof department stores), and then to Matsuzakaya, Odakyu Department Store and Millennium Retailing,
Inc. (the holding company of Seibu Department Store and Sogo) outside the ADO group. This trend
among major department stores to recruit managers from Isetan to enhance their merchandisingcapabilities may be supported by today’s recognition that knowledge concerning merchandising isessential for the management of a department store, and such knowledge is the source ofcompetitiveness.

1-3.

Previous knowledge transfer studies

Since the Meiji Restoration, Japan has seen countless cases of industries springing up andmodernizing by introducing knowledge related to business practices, management and technologies
drawn from the corresponding industries in advanced foreign countries. Japan started researching
department stores in the U.S. and Europe in the late nineteenth century, and many kimono shops
transformed themselves into department stores in the early twentieth century, triggered by the“Department Store Declaration” launched by Mitsukoshi in 1904. Japan’s department stores wereborn from knowledge studies carried out by business people who visited department stores overseas
in the early days (Takahashi 1972). Since then, as part of their growth, Japanese department stores
have learned about store design from their peers overseas through study tours. Shiraishi & Toba
(2003) described the process by which Takashimaya transformed itself into a department store before
World War II by making positive use of the knowledge that the store obtained from overseas
department stores mainly by visiting them.
With respect to knowledge transfer in the retail industry, there are many studies such as Goldman(2001), which describe, in terms of global marketing, the process by which business styles andmanagement knowledge are transferred when a retailer based in an advanced country branches out
into a developing country. With regard to the business styles of department stores, Sekine & O (2003)
concluded that the transfer of management techniques from Japan to Korea is attributable to technicaltie-ups established for opening stores.
On the other hand, I found very few studies undertaken from the viewpoint of organizational
learning and focusing on the recipients of knowledge that analyze the process by which the recipientsenhance their management and organizational abilities by introducing this knowledge. From this typeof viewpoint, Nakamura & Asakawa (2004) studied the pharmaceutical and bio industries, andidentified four stages of knowledge transfer, namely exploitation, acquisition, digestion and6Knowledge Transfer in Management of Department Stores

utilization, which is suggestive for this study.
The available and effective approaches to knowledge transfer are still being studied (Kim 2002).
Previously published work discussing knowledge transfer includes studies by Nonaka & Takeuchi(1996), Almeida & Kogut (1999), and Leonard & Swap (2005). They describe their approaches toknowledge transfer as follows: “the interaction between implicit knowledge and explicit knowledge
occurs on an individual basis” (Nonaka & Takeuchi 1996), “knowledge in its context is transferred
via human beings” (Almeida & Kogut 1999), and “Deep Smarts are fostered through guided
experience” (Leonard & Swap 2005), all of which emphasize knowledge transfer “via humanbeings.” The knowledge transfer dealt with in this paper is defined as the creation or transfer ofknowledge within an organization, and the body of work describing transfer between corporations isvery small. Suzuki (1980) divided and organized the ways of transferring retail management
techniques from A to B into three types: (i) a person moves from retailer A to retailer B, (ii) an
employee of retailer B learns retail management techniques from retailer A, and (iii) a third party
mediates the transfer. Should we recognize that knowledge transfer among department stores occurs
via people, that is, through the movement of the management staff of major department stores?
This study focuses on the department store industry, and analyzes the transfer, from the U.S. to
Japan and among Japanese peers, of knowledge closely related to management, such as
merchandising from the viewpoint of organizational acquisition and knowledge acquisition. These
viewpoints differentiate this study from previous work.

2.

Method of study

2-1.

Existence of transfer and assessment of extent

Although the actual transfer of knowledge (the extent of transfer) has yet to be definitely defined,
this study divides knowledge transfer into the following five stages described by Nakamura &Asakawa (2004). (i) “No transfer” represents the stage where no knowledge related material has beentransferred, (ii) “Transfer of materials” represents the stage where knowledge related materials havebeen physically transferred, (iii) “Utilization” represents the stage where the transferred knowledge isutilized, (iv) “Rooted” represents the stage where the transferred knowledge has been utilized andtaken root in the organization, and (v) “Real effects” represents the stage where the transferredknowledge generates effects reflected in performance figures. The extent to which knowledge has
been transferred is evaluated in the above order.
This study treats “Buyers Manual” and “MD Notes” as knowledge to be transferred, and has
7Miyazoe

carried out an evaluation by defining the clearly recognizable “Transfer of materials” stage, where
the physical or visible materials have been transferred (held by the corporation concerned) as the firststage of knowledge transfer.

2-2.

Survey method

I conducted surveys for this study as follows. Based on information concerning the movements ofdepartment store management staff mentioned above, I surveyed a total of twelve department stores
beginning with Isetan, followed by Matsuya, Tobu Department Store, Keikyu Department Store,
Iwataya, Tokyu Department Store, Odakyu Department Store, and Matsuzakaya, to which Isetan’s
managers moved, and Takashimaya, Mitsukoshi, Daimaru and Seibu Department Stores (Millennium
Retailing, Inc.).
First, I sent questionnaires to the managers in charge of the management planning of thesedepartment stores posing general questions about awareness, in-house retention and utilization of the“Buyers Manual” and “MD Notes.” Second, I visited each of these corporations to interview key
staffs at the director level who were familiar with the history of knowledge transfer and utilization,and to determine the in-house materials (actual papers or books) that were available. Third, I
researched descriptions of merchandising-related training and system construction based on thecorporate history of each department store, and literature dealing with important people inmerchandising.5) During these surveys, I took care to check facts with as many sources as possible.

3.

Actual situations of knowledge transfer related to merchandising at

department stores
I analyzed the transfer of merchandising knowledge seen in the “Buyers Manual” and “MD
Notes,” and drew the following four conclusions:3-1.

Formats of knowledge concerning merchandising at department stores

I found that there are five types of tangible materials describing knowledge of merchandizing
operations at department stores: (i) the “Buyers Manual” (English version) edited by NRMA, (ii)material prepared in-house by translating the “Buyers Manual” edited by NRMA in-house (Matsuya),(iii) “Buyers Manual” (Japanese version) published by Depato Shimbun, (iv) “MD Notes” created by
Isetan, and (v) merchandising-related manuals edited in-house by each department store.
While Fujioka (2004) also provides a description of the NRMA “Buyers Manual” (English
8Knowledge Transfer in Management of Department Storesversion) in Isetan’s corporate history, its Japanese version translated and published by Depato
Shimbun is described for the first time in this study. I believe that this is a meaningful contribution
since it constitutes the discovery of material produced during the department store recovery period
after World War II.

3-2.

Routes of transfer

Chart-3 shows the flows of the introduction of knowledge from the U.S., and its transfer inside theJapanese department store industry. The “Buyers Manual” (English version) edited by NRMA wastransferred from the U.S. to Japan via two routes. One was its introduction by KOSUGE, Tanji III of
Isetan, and the other was the publication of the Japanese version by Depato Shimbun, the publisher ofa trade journal for the department store industry. (Later, Matsuya translated NRMA’s “Buyers
Manual” (1979 edition) into Japanese in-house to produce a private version.) Inside Japan, Isetan
created its “MD Notes” based on concepts presented in the “Buyers Manual.” “MD Notes” wastransferred to other department stores, and its concepts were reflected in the transferees’
merchandising-related manuals.

Chart-3 The Flows of MD Knowledge’ Transfers
From the US to Japan
1930 ed.
1949 ed.

（Isetan：1951）

Calcification
Merchandising①NRMA’ s
Buyers Manual
1957 ed.

③NRMA’ s
Buyers Manual(Japanese Version)
Translated
By Depato Shinbun

1965 ed.

1979 ed.

（1961‐63）②MD Notes（Created by Isetan)⑤Merchandising-related
Manuals in Japanese
Department stores④ NRMA’ s Buyers
Manual (Japanese Version)
Translated
By Matsuya for private）

9

Miyazoe

3-2-1.

Transfer of “Buyers Manual” from the U.S. to Japan

Introduction of knowledge by Isetan
In the course of approximately three months from June to September 1951, President KOSUGE,
Tanji III of Isetan (known in 1951 as Managing Director KOSUGE, Toshio) visited many department
stores in New York, London, and Paris and other cities in the U.S. and Europe. Isetan’s corporate
history describes President KOSUGE’s view on the concepts of merchandizing as follows:
In the U.S. after the end of World War II, the conventional sales attitude of waiting for shoppers“to sell produced goods” was being replaced with a new marketing method “to make suppliers
produce goods that are sure to sell well.” Managing Director KOSUGE, Toshio toured the U.S.
commerce industry in the middle of the “Marketing Revolution,” when all the plans and schemes forcreating “things that sell well” or “merchandise that sells well” were comprehensively called MD,
and every retailer was concentrating wholeheartedly on the establishment of merchandising. 6)
Merchandising is a scientific method for consistently planning, undertaking and controlling every
stage from product planning to purchasing, and from the assortment of goods in each department tosales trend analysis. This was a very fresh idea for Japanese department stores in those days. The
NRMA “Buyers Manual” was a document that covered all the ideas and steps involved inmerchandising in a systematic way.
KOSUGE, Toshio brought this “Buyers Manual” (assumed to be the 1949 edition) back to Japan,
and promptly instructed YAMAMOTO, Munekazu (then Senior Manager of the Merchandise
Division) and YAMANAKA, Kan (then Section Manager of the Children’s Clothes Department) totranslate it into Japanese.
Furthermore, these two managers focused on the concept of merchandising standards. They
modified the translation to fit Isetan’s actual business practices by adding Isetan’s own categorizationby shopper, usage and attention level to the price zone, price line and seasonal factors described in
the original document. Thus, the concept of merchandising standards and “categorized
merchandising” was invented, and incorporated into “MD Notes”.7)
Categorized merchandising was first applied to the Children’s Clothes Department in Isetan’s
Shinjuku Store. Based on the unprecedented concept of “categorization by usage,” clothes, childcare
goods, sundry goods and furniture were gathered together in the Baby Goods Department. Despite
the baby-boomer era and its explosive demand for baby goods, the Children’s Clothes Department
was less integrated into a complete department than the kimono, men’s wear and ladies’ wear
departments that were core business divisions. This delay in integration allowed Isetan to take a
10Knowledge Transfer in Management of Department Storesleading role. The success of this attempt led to applications to other departments, and theorganization of corporate-wide categorized merchandising as the MD’s core function.
At that time, YAMAMOTO was holding study meetings on merchandise categorization almost
every day with members of the Merchandise Division. YAMAMOTO is said to have taken theinitiative in fostering human resources and inculcating the basic principles of MD.8)

Translation by Depato Shimbun and participation of Takashimaya
By contrast, Depato Shimbun Co., Ltd., a publisher of trade periodicals and other materials for the
department store industry, was also interested in the NRMA “Buyers Manual”. The publisher asked
Takashimaya to review the translation of the “Buyers Manual” (1957 edition), and SHIMIZU,
Shigeru then a member of the Research Department at Takashimaya’s Head Office, led the review.
The translation was supervised by then Professor SHIMIZU, Akira of Meiji University (elder brotherof SHIMIZU, Shigeru), and the Japanese version of the “Buyers Manual” was completed. While theoriginal English version comprised a single volume, the Japanese version was divided into three
volumes and published separately between 1961 and 1963. These volumes were not sold inbookstores; Depato Shimbun Co., Ltd. sold them directly to department stores. It is said that around
1,000 copies of each volume were sold.9)
Thus, the NRMA “Buyers Manual” was introduced into Japanese department stores by Isetan andTakashimaya in parallel, but it should be regarded that the comprehensive, wide-ranging know-how
as regards department store operation included in the original English version of the “Buyers
Manual” was introduced by Takashimaya.
Although SHIMIZU, then a member of the Research Department of Takashimaya’s Head Office,took charge of the translation, it was nothing more than a task requested by Depato Shimbun Co.,
Ltd., and hardly affected Takashimaya’s business as a whole. There is also no evidence remaining in
Takashimaya to show that this department store positively utilized the “Buyers Manual” as acorporation. It is suspected that because it had obtained various types of information from abroad
through other channels since before the war, unlike Isetan, Takashimaya had no urgent need to relyon the “Buyers Manual” for overseas information.10)

3-2-2.

Transfer among Japanese department stores

I sought to find tangible evidence of transfer to confirm the transfer of knowledge materials suchas the “Buyers Manual” and “MD Notes” from Isetan to other department stores. The results are11Miyazoe

Chart-4 Knowledge transfer of “Buyers Manual” and “MD Notes”（Evidence of MD knowledge）

Company
Name

Move of
Executives
from Isetan

NRMA’ s Buyers Manual
EnglishVersion

MD Notes

PrivateTranslated by Concept of MD
Translated Depato Shinbun Classifications

MD Notes(Card)

IsetanMatsuya
AＤＯ
Group

Tobu
KeikyuIwataya
Tokyu
OdakyuMatsuzakaya
Takashimaya
Mitsukoshi
Daimaru
Seibu
exist

Exist only in a record

illustrated in Chart-4.
The “Buyers Manual” was transferred to three department stores to which YAMAMOTO andYAMANAKA moved from Isetan, i.e., Matsuya, Tobu Department Store and Tokyu Department
Store. “MD Notes” was transferred to a total of five department stores including Odakyu Department
Store and Matsuzakaya, to which Isetan managers had recently moved, in addition to Matsuya, Tobu
Department Store and Tokyu Department Store.11) The concept of categorized merchandising wastransferred to Keikyu Department Store and Iwataya, but not in the form of the “MD Notes.”

Knowledge transfer to Matsuya
In 1976, YAMANAKA, Kan of Isetan was invited by Matsuya, then in a desperate slump, to join
the company as Vice President (he was promoted to President in 1979). YAMANAKA did not bring
Isetan’s “MD Notes” as it was into Matsuya, but set about establishing direct communications bygathering young employees in the directors’ meeting room. He started a series of training sessions forthe sales staff at each corner called “PCA School” (commonly known as Yamanaka School), where
the person in charge of a corner analyzed his or her counter based on the concept of categorized
merchandising, and presented improvement plans for discussion by the participants. Thus, Isetan’s
MD knowledge was transferred to Matsuya.12) At the same time, Matsuya continued studying the12Knowledge Transfer in Management of Department Stores

NRMA “Buyers Manual”. In 1989, nineteen Matsuya staff members translated the 1979 edition of
the NRMA “Buyers Manual” and created Matsuya’s in-house version using a word processor. Then,
Matsuya improved the performance of its Ginza Flagship Store in terms of clothes and kitchenware,and became a leading department store in the Ginza.
After moving to Tobu Department Store in 1989, YAMANAKA, Kan invited OHTA, Nobuyuki
who had undergone buyer education in the U.S. and had been working as a columnist for Senken
Shimbun, to become President of Tokyo Lifestyles Institute, Inc. (an organization authorized to create
merchandising directions). OHTA took charge of a “Merchandizing Seminar” to train merchandisers.
The framework of merchandiser training and operating methods were based on YAMANAKA’s
approach, but the content was devised by OHTA. In 2003, SANO, Kazuyoshi, Senior Manager of the
Merchandise Administration Department of Isetan with experience in merchandising, was invited to
Matsuya as Vice President (and Director of the Operation Headquarters). His training style was based
on YAMANAKA’s approach.

Knowledge transfer to Tobu Department StoreIn 1989, YAMANAKA, Kan moved from Matsuya to the Tobu Department Store as a senior
corporate advisor, and in 1990, he took the office of President of the Department Store.
YAMANAKA focused on education with respect to merchandising for buyers and sales staff with aview to enhancing sales power toward large-scale expansion and the renewal of the Ikebukuro Store.
He carried out practical training by letting trainees look at actual merchandising operations at
different departments, and consider challenges and improvements (called the “Tobu School”), which
comprised the same training format as that realized by YAMANAKA at Matsuya.
“MD Notes” was also introduced into the Tobu Department Store, and its employees were made tocarry notes describing mandatory requirements for assortment and department design. In March 1990,
the Tobu Department Store introduced a buyer system and a sales manager system, and in October
1990, established the Service Training Department for on the job training (OJT) close to actual sales
activities. The merchandising training curriculum included basic principles for buyers andmerchandisers, fundamental knowledge about budgeting and numerical-based control, price-based
merchandising, complete department design, basic knowledge of marketing, and purchasing
strategies. After establishing in-house merchandising knowledge, Tobu Department Store
incorporated it in its own “Buyers Manual”.

13Miyazoe

Knowledge transfer to Tokyu Department StoreIn 1963, YAMAMOTO, Munekazu quit his position as Managing Director of Isetan to take theoffice of Representative Director and Vice President Responsible for Sales at Toyoko Department
Store. During his first four years at Toyoko, he launched a series of structural reforms.13) This was
because in those days, Toyoko was overwhelmed with managerial problems, so YAMAMOTO was
unable to focus solely on merchandising, which had been his domain at Isetan.
Later, after the start of the new manager system (1967), YAMAMOTO repeatedly emphasized inmanager training the three principles of the “base of sales,” i.e., ideas of (i) improvement of theservice level, (ii) thorough unit-based merchandise management, and (iii) improvement of businessprocesses. YAMAMOTO continued preaching these three principles until his death three years later.
YAMAMOTO died in 1971, when the Tokyu Department Store was in the process of reformation,
but he left two knowledge materials at Tokyu. One is the Tokyu version of “MD Notes.” Although
the standards for categorized merchandising are the same as in Isetan’s original version, the Tokyu
version is entitled “Merchandising Checkpoints.” I acquired a copy of this material, but its coverincludes the wording “Toyoko Department Store & Shirokiya”. This suggests that this material wasissued between 1963, when YAMAMOTO joined Toyoko, and 1967, when Toyoko merged with
Shirokiya, and was renamed Tokyu Department Store.
The other knowledge material is a collection of YAMAMOTO’s instructions and remarks atmeetings edited into a pocketsize book entitled “YAMAMOTO, Munekazu Genkouroku – Shoubaino Michi” (Words of YAMAMOTO, Munekazu – Virtue of Merchants). This book was prepared in1972, after YAMAMOTO’s death, as a lasting memorial and to pass his instructions on to thefollowing generations. The employees are encouraged always to carry this book with them. This
book talks about the philosophy of commerce as a retailer or department store, and the basic stancetoward department operation and merchandising. The section entitled “Unit-based Merchandise
Management and Categorization & Organization” (pp. 82 – 83) describes the concept of
categorization by target, usage, design and size.
After YAMAMOTO died, however, TANAKA, Shosuke of Daimaru was invited to become vicepresident (1972). Categorized merchandising techniques were no longer taught, and themerchandising knowledge gradually disappeared.14) However, between 1983 and 1989, Tokyu
Department Store held buyer training sessions once or twice a year, inviting Mr. Seagull, one ofauthors of the NRMA “Buyers Manual” (1979 edition) , who was an executive officer of Macy’s.
Through these training sessions, the “Buyers Manual” and knowledge about categorized14

Knowledge Transfer in Management of Department Stores

merchandising were reintroduced, but immediately after the last session of this training course,
Tokyu changed its merchandising policy to reduce the range of buyers’ tasks, the training system wasabolished, and the knowledge was not passed on. The two knowledge materials YAMAMOTO left at
the Tokyu Department Store are held personally by senior employees, but are not usedorganizationally. A different “Buyers Manual” currently used inside Tokyu includes neither theknowledge introduced through the original “Buyers Manual” nor the merchandise categorization
found in the “MD Notes” provided by YAMAMOTO, Munekazu.

3-3.

Transfer accompanying personal moves

The transfer of the “Buyers Manual” and “MD Notes” among corporations was the direct result of
the movement of management staff to other corporations. The history of the movement of department
store managers to other department stores is shown in Chart-1 and Chart-2. First, YAMAMOTO, who
had taken charge of the internalization of the “Buyers Manual” and the sophistication ofmerchandizing at Isetan, moved to the Tokyu Department Store (then the Toyoko Department Store)(1963). Next, YAMANAKA moved to Matsuya (1976), and then to the Tobu Department Store(1990). The “Buyers Manual” and the “MD Notes” were both transferred to the department stores bythese two high-rank managers. Recently, certain managers have moved from Isetan to Matsuzakaya,
Odakyu Department Stores and others. Since these people had experienced merchandising at Isetan
based on the “MD Notes,” only the “MD Notes,” and not the “Buyers Manual,” were transferred to
the new workplace. They brought only the knowledge they had been given. This transfer was the
direct result of personnel changes. As regards the “MD Notes,” not only was the tangible materialtransferred, but also the new managers applied and inculcated merchandising knowledge by directlytraining employees at the actual business sites of the new workplace, and established education
opportunities such as “PCA School” (Matsuya) and “Tobu School” (Tobu Department Store).
When YAMAMOTO Munekazu moved to the Tokyu Department Store (1960s), both the “Buyers
Manual” and “MD Notes” were introduced. For several years after joining Tokyu, YAMAMOTO was
too busy with management reorganization and business improvement work to satisfactorily educate
merchandisers on an OJT basis, unlike during his days at Isetan.15) This is quite different from thecase with YAMANAKA, who actively worked to transfer merchandising knowledge to Matsuya,then to the Tobu Department Store. This is assumed to account for the fact merchandising knowledge
did not take root in the Tokyu Department Store.16)15

Miyazoe

3-4.

Easier transfer of knowledge with an intensive, simple concept

Finally I found that the simpler the format of a knowledge material is, the more easily theknowledge is transferred and spread. Isetan’s “MD Notes” were so simplified that users were able tokeep only the headline of each item in mind. Employees easily understood what they should do, andthe notes were portable so that users could always carry them for ease of reference. Thus, it was avery effective format by which to transfer knowledge. In contrast, “YAMAMOTO, Munekazu
Genkouroku” (Words of YAMAMOTO, Munekazu) used in the Tokyu Department Store also
provided standards for categorized merchandising, and was designed as a portable book, but its
contents were expressed in sentences, so users were required to read and understand it. I assume that
this is why it did not take root in Tokyu Department Store.

4.

Isetan’s development of “MD Notes” and its fruits
Isetan created “MD Notes” in-house based on the “Buyers Manual,” and here, I will show how

these unique “Notes” were developed by comparing them with the original “Buyers Manual”
produced by NRMA.
In addition, I will describe the concrete effects Isetan’s preparation of the “MD Notes” had on
actual corner designs, and on communications among employees by comparing Isetan with Seibu
Department Store, which did not have the benefit of the “MD Notes.” Then, I will consider the fruitsof this knowledge transfer.

4.1.

Creativity of Isetan’s development of “MD Notes”

Isetan independently developed their “MD Notes” as standards for assortment and department
deployment based on ideas in the U.S. “Buyers Manual”. In other words, this was a case of theinternalization of knowledge introduced from the outside. No edition of the NRMA “Buyers Manual”
includes concepts similar to those in the “MD Notes.” The section that is closest to Isetan’s “MD
Notes” is the “Merchandising Assortment” (pp. 65 – 71 of the 1957 edition, and pp. 95 – 103 ofVolume 1 of the Japanese version), which emphasizes the importance of assortment according tocategorization by size, color and price, and identification of merchandise that sells in a short period
and that sells all year round, while “Classification Reports” (p. 80 of the 1957 edition, and p. 116 ofVolume 1 of the Japanese version) is highlighted. I assume that these chapters were interpreted from
Isetan’s viewpoints, arranged into a format applicable at the time, i.e., the scheme of categorized
merchandising, and edited into the “MD Notes.” I speculate that the period during which these steps
16Knowledge Transfer in Management of Department Stores

were followed for the in-house creation of the “Notes” comprised the time following the return of
KOSUGE, Toshio to the time just before YAMAMOTO, Munekazu quit, i.e., 1952 to 1963. The 1965
edition of the NRMA “Buyers Manual” includes the section “Merchandising by Classification” (pp.
181 – 192 of the 1965 edition), emphasizing the importance of “planning and analysis by eachcustomer’s demand”. When this edition was published, YAMAMOTO, Munekazu had already moved
to the Tokyu Department Store. This implies that Isetan’s “categorized merchandising” and the “MD
Notes” preceded the 1965 edition of the NRMA “Buyers Manual”. The 1979 edition of the NRMA
“Buyers Manual” includes detailed examples of merchandise classification, which are close to beinga merchandise code scheme, under the headline “Merchandise by Classification” (pp. 252 – 256 of
the 1979 edition).
It is significant that over many years there was no standard for merchandising items at Isetan otherthan categorized merchandising, and a belief permeated the employees that simply reciting these
items and applying them would constitute complete merchandising. Since the idea of categorized
merchandising was a concept applicable to every domain of merchandise sold at a department store,
and the items of categorized merchandising were universal standards for merchandising, categorized
merchandising took root in this company.

4-2.

Knowledge taking root inside Isetan

After introducing knowledge about merchandising through the “Buyers Manual” edited by NRMAin the U.S., and creating the “MD Notes” for internal use, how did Isetan enable this knowledge totake root in the company? Examining this process of will clarify the fruits of knowledge transfer.17)
First, since the days of YAMAMOTO and YAMANAKA, Isetan officers were teaching buyers andsales people about merchandising focusing on whether “categorization and organization” were
implemented. Employees were instructed always to be aware of categorized merchandising describedin “MD Notes” and take action at every stage of the merchandising process from merchandiseplanning to departmental assortment and the analysis of sales trends and results.
Second, standards of categorized merchandising were applied to each employee layer and position
according the range under control, and analyzed and managed. In concrete terms, a large category(for a division) of standards of categorized merchandising was allocated to the head of a division ateach store, a middle-size category (for multiple departments) to a section manager or buyer, and asmall category (for one department) to the person in charge of a department, and each person was
required to plan and manage based on the allocated standards. Although concrete indices such as
17

Miyazoe

actual pricing within each price zone and detailed classification varied with the merchandise field,
each employee was able to understand the MD standards for the new division or department
immediately, and start activities such as planning, sales, analysis and management after personnel
transfer because the dimension and the base MD categorization were common to all the fields.
Buyers were required to make merchandising across several departments and stores, but the same
standards of categorized merchandising were applied.
Third, dimensions of categorized merchandising such as usage and concern were employed in theanalysis in the “Merchandise Information Analysis System.” Although the dimensions employed
were not unnecessarily detailed, dimensions usually recognized in categorized merchandizing wereused, and were absorbed naturally by the employees.
Fourth, departmental development and organizational design were also defined, developed andoperated based on the concept of categorized merchandising. Therefore, at a newly opened
department, the concept of the department and the composition of goods were easily understood fromthe viewpoint of categorized merchandising. At the “Baby Shop” and “Teens Shop” opened in the
1950s, for example, the targets were babies or teenagers, and products for these targets weredisplayed. In the 1960s, demand-driven departments such as “Casual Clothes Shop”, “Small Size
Shop”, and “Large Size Shop” were developed one after another, but the concept and themerchandise composition followed the rules of categorized merchandising, and the employees easily
understood them.
Similarly, operational organizations were also defined based on the standards of categorized
merchandising, so their target shoppers and the merchandise composition were clearly identified. For
example, the Ladies’ Wear Group Division of the Shinjuku Store was developing the 1st Ladies’ Wear
Department (targeted at Young) and the 2nd Ladies’ Wear Department (targeted at Young, Adults andMiddle) with the demand-driven category of ‘Size,’ and the 3rd Ladies’ Wear Department targeted at
Adults, Middle and Senior. Thus, target shoppers and merchandise assortment were defined withstandards of categorized merchandising. This was widely different from conventional organizations
based on physical floors in conventional department stores, where, for example, the 1st floor is the 1st
Ladies’ Wear Department and the 2nd floor is the 2nd Ladies’ Wear Department.
As described above, Isetan regarded its categorized merchandising indicated in “MD Notes” as a
“Merchandising Formula” inside the company, and while applying it to various business scenarios,
continued to inherit the established merchandising structure over many years without modifying it.18)18

Knowledge Transfer in Management of Department Stores

4-3.

Difference between Isetan and Seibu Department StoreThe way in which the fruits of the knowledge about merchandising presented in the “MD Notes”
penetrated the Isetan employees can be clarified by comparison with a department store where suchknowledge was not introduced. As an example, Isetan is here compared with the Seibu Department
Store in terms of designing a new department concept and developing a department.19)
The first difference is the standardization of the business terms in daily use by the employees. In
Isetan, terms related to categorized merchandizing were given a common definition throughout thecompany. In contrast, in Seibu terms related to merchandising used among management personnel
were very sensuous, and their definitions and perception among employees were inconsistent. Fromthe late 1980s, for example, Seibu began calling a customer segment “Mature,” but this term did not
only mean a certain age cohort, but was a multi-sense word.
The second difference was in the understanding of the corner concept. Since Isetan devised theconcept of a new corner based on the MD Notes, its target shoppers, price zone, type of concern, andusage of merchandise were clear, and its merchandising policy was evenly shared among people fromtop management to sales staff at the shop front. In Seibu, although an integrated, uniform store wasconstructed under the leadership of the headquarters’ staff, the concept did not penetrate to the sales
front.
The third difference lay in sure materialization and improvement of sales departments. When adepartment required a refit, Isetan completed the new department as intended by the top management
during the planned period. A post-opening report was made using terminology common throughout
the company, and so the employees could detect issues and understand instructions as regards
required modifications. As a result solutions and modifications were realized smoothly. On the other
hand, Seibu often started a refit before the ideas about the target customers, usage and concern had
been fully shared among buyers and shop developers, and the refitting work took a long time.
Moreover, there were many cases where the top management would check the department
immediately before opening, and point out some imperfection, and then the department had to berefitted again through the night. When Yurakucho Seibu opened in 1984, for example, somedepartments including fashion departments were modified just before the opening. Nevertheless, thetop management found further unsatisfactory points, and staff members were forced to correct them.
The existence of “MD Notes” is thought to account for this difference in knowledge sharing.

19

Miyazoe

5.

Summary and discussion

5-1.

Transfer of merchandising knowledge in department store industry

The first finding of this study is that knowledge transfer in the field of merchandising activities inthe department store industry is shown to exist from the examples of the “Buyers Manual” and “MD
Notes.” Knowledge in merchandising accumulated by department stores in the U.S. was introduced
into Japan with the “Buyers Manual,” the knowledge was internalized as the “MD Notes” by Isetan,and spread from Isetan to various department stores.
The second finding is that materials containing knowledge about merchandising were transferredalong with management people who had been in charge of merchandising at Isetan, and then moved
to other department stores. The expression “along with management people” represents three cases.
The first case is that when a manager moved, that manager brought merchandising knowledgematerial into the new workplace. The management staff that moved had been trained at Isetan, or had
the same knowledge. When YAMAMOTO, Munekazu moved from Isetan to the Tokyu Department
Store, and YAMANAKA, Kan moved to Matsuya and the Tobu Department Store, both the “Buyers
Manual” and the “MD Notes” were transferred, but when Isetan’s managers moved recently to
Matsuzakaya and Odakyu Department Store, only the “MD Notes” used personally by the managers
at Isetan were transferred. This is the second one.
The third one is that the managers who moved provided the buyers and sales staff of their new
workplaces with practical education using the “MD Notes.” For example, YAMANAKA establishedthe “PCA School” (Matsuya) and “Tobu School” (Tobu) to assess actual merchandising at actual
sales corners, point out problems and suggest improvements. In addition to the transfer of theknowledge materials, practical guidance by managers promoted the utilization of merchandisingknowledge.

5-2.

Conditions for knowledge transfer

Isetan and Takashimaya discovered the U.S. “Buyers Manual” almost simultaneously andtranslated it into Japanese, but they differed greatly in their subsequent continued in-house utilization.
While Isetan proceeded with in-house utilization and incorporated the material in its own “MD
Notes,” no influence of the “Buyers Manual” can be seen in the manual for buyers currently used
inside Takashimaya. What factors have contributed to this difference in the transfer of knowledge?
Certain conditions regarding transfer are assumed to exist inside companies, as there are some20

Knowledge Transfer in Management of Department Stores

differences in knowledge transfer among companies that touches the same or similar new knowledge
at almost the same time. Isetan’s case implies that the company needed to establish and enhance its
sales power with knowledge about merchandising because of managerial situations to which thecompany was exposed and its position in the industry. Enhancement of the merchandisingcapabilities of the organization was a natural choice considering the corporate properties it developed
as it grew, and the effects of subsequent operation strategies.
As proof of this assumption, the first factor is the position of Isetan in the department store
industry in the 1950s. After the end of World War II, while many department stores resumed ordinary
business to meet the demand to restore consumers’ lifestyles, almost all the space at Isetan’s Shinjuku
Flagship Store had been seized and was held by the U.S. occupying forces until 1953, so thecompany was significantly behind its competitors. Under these circumstances, it was a particularly
urgent task for Isetan to restore business know-how and systems, and catch up with otherkimono-shop-turned-department-stores.

By

1950,

Mitsukoshi,

Daimaru,

Takashimaya

andMatsuzakaya were outperforming other department stores. In that year, Isetan’s sales were only
16.1% of Mitsukoshi’s, the leader at the time, compared with 41.7% in 2000.20) In those days, twopostwar history books, edited by Shimizu & Tsuchiya (1951) and Tsuchiya (1955), were jointly
written by department store staff members, but Isetan participated only in Shimizu & Tsuchiya(1951), and the field dealt with by Isetan’s staff was accounting, not merchandising.
Next, Isetan had grown, centering on its Shinjuku Flagship Store, over many years, which seems tohave resulted in an enhancement of its merchandising capabilities. The required merchandisingknowledge differed between companies such as Takashimaya, Mitsukoshi and Daimaru, which had
nationwide multi-store strategies, and Isetan, whose growth centered on the Flagship Store. In fact,
because Takashimaya needed merchandising knowledge for headquarters-driven multi-store
operation, the company was making efforts to pursue and study merchandising organization andknowledge from multi-store-operating department stores in European countries in addition to the
U.S., and was not relying solely on the “Buyers Manual” produced by NRMA (1957 edition), whosetranslation Takashimaya itself had taken charge of. Of those companies, Takashimaya focused on thecentralized merchandising headquarters system of the German-based Karstadt Department Store, amember of the Continental Department Store Association, and dispatched multiple staff members to
the German company to acquire operational knowledge. Then, Takashimaya reformed its
merchandising headquarters organization in 1963 based on what it learned from Karstadt to prepare
for multi-store development toward the 1970s (from four stores in 1963 to sixteen in 1979).21)
21

Miyazoe

In department stores with multiple outlets such as Takashimaya, merchandising leadership wasoften unstable, shifting to and fro between the headquarters-led system, the store-led system, and theregional division system. However, since Isetan’s operations centered on its Shinjuku Flagship Store,
cooperation between buyers and sales people was completed between the headquarters and the store
front, so it was easier for Isetan than for others stores such as Takashimaya to extend the use of the“MD Notes,” and apply them to corner development and organization design. It can also be assumed
that because Isetan retained the head-store-driven system, the merchandise division and the sales
division did not become disconnected from each other, so the leadership was neither shifted nor
conflicted. This enabled the company to maintain consistent merchandising operations based on the“MD Notes” over a long period.
I sought the conditions for knowledge transfer by analyzing related cases, in addition to Isetan,
Matsuya and the Tobu Department Store, where knowledge transfer took place, and Takashimaya and
Mitsukoshi, where the knowledge found in the “MD Notes” was not transferred, and defined theconditions as (a) requirements for knowledge to be transferred, and (b) requirements for enterprises
to introduce knowledge as shown in Chart-5.22)(a) The requirements for knowledge to be transferred include (i) the format (shape) of theknowledge, (ii) the possibility of substitution with other knowledge, (iii) personal abilities involved

Chart-5
Requirements of Knowledge Transfer and extent of Transfer■ Requirements of Knowledge Transfer（a）Requirement for knowledge
to be transferred
FormatPossibility

Personal
Ability

Method（ｂ）Requirement for enterprises
to introduce
Size of theOrganization

Managerial
FeatureOrganizational
AbilityStrategic
Compatibility

Continuous
SupportBy CEO■Extent Of Transfer

Not YetTransfer ofMaterial

Utilization

22

Rooting

AffectingKnowledge Transfer in Management of Department Storesin the succession of knowledge on the side of the knowledge recipients, and (iv) methods of transfer(training at recipients’ workplaces). (b) The requirements for enterprises to introduce the knowledge
include (i) the size of the organization (not only the number of employees, but whether it is a singleor multi-store operation), (ii) managerial features at the time of introduction (in a managerial crisis,
or as part of evolution), (iii) strategic compatibility, (iv) organizational abilities to absorb new
knowledge, and (v) continuous support of persons in charge of transfer by top management.
I assume that the requirements will depend on whether knowledge transfer is achieved and theextent of the transfer (“transfer of materials,” “utilization,” “rooting,” or “affecting”). This study
collected and analyzed data based on the existence of tangible materials such as the “Buyers Manual”
and the “MD Notes” as the criteria for knowledge transfer. If I succeed in obtaining further
interviews to determine “the utilization stage”, “the rooting stage”, and “the affecting stage” for eachcompany, the correlations between the conditions required for knowledge to be transferred and theextent of any transfer may be clarified in detail.

<Acknowledgements>
I would like to express my heartfelt thanks to professors in the business and marketing field at theGraduate School of Economics, The University of Tokyo, and to the reviewers and area editors of“Ryutsu Kenkyu” for their valuable comments.

<Notes>1)

The National Retail Merchants Association (NRMA) was founded in 1911 in order to foster the retailindustry, and department stores and specialty stores joined the association. Later, the association mergedwith other organizations to form the current National Retail Federation.

2)

By the Secretariat to Corporate History Editors, Public Relations, Isetan (1990). Although the “Buyers
Manual” brought back by KOSUGE Toshio in 1951 is assumed to be the 1949 edition according to thetiming of the NRMA revision, the actual material was not found at Isetan so the edition remains
unconfirmed.

3)

Items of categorized merchandising indicated in “MD Notes” are as follows: First, categories forassortment are (1) Merchandise category (price zone): (i) Prestige (authority merchandise), (ii) Moderate(central merchandise), and (iii) Budget (bargain merchandise), (2) Price category (price line), (3) Seasonal
category: (i) Year-round merchandise, and (ii) Seasonal merchandise, (4) Period category: (i) Introduction,23

Miyazoe(ii) Peak, and (iii) Sell-out, (5) Usage category: (i) Gift, (ii) Own consumption, (a) Durable merchandise,and (b) Consumable merchandise. Second, categories for corner development are: (1) Target category: (i)Sex, (ii) Age, and (iii) Group, (2) Usage category: (i) Task (use), (ii) Place (for use), and (iii) Function, (3)Concern category: (i) Color & pattern, (ii) Shape & design, (iii) Size, (iv) Price, (v) Material, and (vi)
Taste.
4)

Three patterns have been confirmed as regards the movement of management personnel of department
stores. First, during the era of high economic growth, railroad companies established department stores inurban areas in quick succession, and mainly in the 1970s, recruited operation leaders fromkimono-shops-turned-department-stores. The move of Munekazu Yamamoto from Isetan to the Toyoko
Department Store (currently the Tokyu Department Store) was the first example of this pattern. Second,
major department stores tend to dispatch managers to their affiliated companies to support management.
The move of Kan Yamanaka from Isetan to Matsuya and the Tobu Department Store was intended toreinforce the Isetan-sponsored group of department stores (ADO). Recently, a third pattern has emerged
where talented managers are scouted regardless of affiliation or partnerships. The movement of people
from Isetan to Matsuzakaya, Odakyu Department Store and others follows this pattern.

5)

I undertook research based on the Association’s materials and interviews with directors and havedescribed in another paper the activities of the Japan Department Stores Association with respect totransferring knowledge from department stores overseas. Surveys and descriptions in this study focus oneach department store as an independent enterprise, and center on the transfer of the “Buyers Manual”
published by NRMA.

6)

Secretariat to Corporate History Editors, Public Relations, Isetan (1990). A Century of Isetan. p.118.
Isetan (in Japanese)7)

In his paper Digital Information Revolution and Fashion Industry included in Volume 2 of Fashion
Business Practical Lesson – Keys and Near Future Told by Professionals (in Japanese) edited by Ishikawa,
A. and Ohara, Y., and published by Senken Shimbun (2002), Keinosuke Ookawa, Director and Managerial
Executive officer of Isetan, writes that he translated such U.S. works as “MERCHANDISING” (which isassumed to be Douglas, Archer Wall. (1918), Merchandising, Macmillian). Anyway, this suggests the way
in which Isetan collected a variety of merchandising knowledge, and created its own “MD Notes.”

8)

Tobita, T. (2001). p.32 Words of Munekazu Yamamoto – Virtue of Merchants. Kokushokankoukai. (inJapanese)

9)Interview with Shigeru Shimizu (June 2004), who translated the “Buyers Manual” by Depato Shimbun.
Since there is not even a copy of “Buyers Manual” in the National Diet Library, it has not been referred to24Knowledge Transfer in Management of Department Storesby any previous research on department stores.
10) Shiraishi & Toba (2003) notes that Takashimaya was introducing many pieces of knowledge fromdepartment stores overseas even in prewar days.
11) Matsuzakaya’s “MD Notes” was introduced in the evening edition of Nihon Keizai Shimbun dated June15, 2004, and “MD Notes” of Odakyu Department Store was introduced in Senken Shimbun dated
September 16, 2004.
12) The following descriptions about Matsuya are based on an interview with the Personnel Department of
Matsuya in June 2004.
13) Saito, N. (1994). p.121. The God of the Department Store – Life of Munekazu Yamamoto. Kawadeshobo
Shinsha. (in Japanese)
14) Tobita, T. (2001). pp. 52-53 Words of Munekazu Yamamoto – Virtue of Merchants. Kokushokankoukai. (inJapanese)
15) Training in the Manager System conducted as part of business improvement was also given by external
consultants. (Saito, N. (1994). pp. 188-190. The God of the Department Store – Life of Munekazu
Yamamoto. Kawadeshobo Shinsha. (in Japanese)16) The Japanese version of the “Buyers Manual” was published between 1961 and 1963, new department
stores opened during these years (Odakyu Department Stores, Tobu Department Stores, etc.) and many
department stores nationwide purchased it, but how it was employed is unclear. It is assumed that, rather
than introducing and utilizing merchandising knowledge from the “Buyers Manual,” these new
department stores placed more importance on inviting ready-to-work human resources into the
management of the department store from kimono-shop-turned-department-stores such as Mitsukoshi,
Takashimaya and Daimaru to achieve earlier practical operation.
17) Based on interviews with a director and a managerial executive officer at the Sales Headquarters of Isetan(November and December 2004)18) It is evaluated highly that Isetan placed the essence of merchandising, that is, the concept that adepartment store should voluntarily carry out merchandise planning and assortment, at the core of its
management, and materialized and practiced its philosophy as the “MD Notes,” while most Japanese
department stores concluded that American methods of merchandising did not fit their commercial
conventions and practices and refused to introduce them.
19) The case of Seibu Department Store is based on my own experience as an employee of the store and on
interviews with former colleagues.
20) Figures for 1950 are cited from Table 2 in Maeda, K. (1999) p.186. Innovative and Adaptable Nature of25Miyazoe
Department Stores in Japan. The Mitsubishi Economic Research Institute, and those for 2000 from p.55
Research Year Book on Department Stores, Stores (2001). (in Japanese)21) Kurahashi, Y. (1999) Memoir of 85 years. Own-account publication
22) Prior to World War II, Takashimaya and Daimaru were operating a Research Division with think-tank-likefunctions at their headquarters, and collecting various types of information on issues from management tocorner development from department stores overseas, and studied application (Takashimaya waspublishing an in-house material entitled “Research Materials,” and Daimaru issued “Research Material on
Daimaru Kimono Shop”). Two postwar books on the history of department stores edited by Shimizu &Tsuchiya (1951) and Tsuchiya (1955), were written jointly by staff members of department stores, andMitsukoshi wrote about the purchase and sale of merchandise, which suggests that Mitsukoshi wasequipped with operational knowledge of a certain level in this field from prewar days.

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Tobu Department Store. (1993). Steps of 30 years of Tobu Department Store. Tobu Department Store.
Japan Department Stores Association. (1959). The 100-year History of Japan Department Stores Association.
Japan Department Stores Association.

<List of Interviewees>
Regarding the “Buyers Manual,” “MD Notes” and knowledge introduction from department storesabroad during the 1950s and 1960s, I collected precious information and completed this paper thanks
to interviews with the following people. I greatly appreciate their cooperation with my work.
The list provides the corporation name, the title of the interviewee at the time of the interview, andthe date of the interview.

Daimaru28

Knowledge Transfer in Management of Department Stores
Ex Director and Head of Kyoto Store (June 4, 2005 and August 19, 2005)
IsetanDirector and Managing Executive Officer (November 19, 2004 and December 2, 2004)
Ex staff in charge of edition of the corporate history
IwatayaManager of the Management Planning Department (May 16, 2005)
Keikyu Department Store
Ex Senior Manager of the Operation Policy Division (January 19, 2005 and March 14, 2005)
Odakyu Department StoreEx Director and Senior Manager of the Merchandising Headquarters (February 1, 2005 and June 5, 2005)
MatsuyaManager of the Personnel Department (June 23, 2004 and January 10, 2005)
Mitsukoshi
Staff of the Gift Sales Department of Nihombashi Flagship Store (March 9, 2004)
Staff of the Men’s Clothes and Accessories Department of Nihombashi Flagship Store (March 19, 2004)
Deputy Secretary-General of the Headquarters of the Labor Union
Seibu Department Store
Representative Director and Vice President of Millennium Retailing (March 8, 2004 and March 30, 2004)
Takashimaya
Shigeru Shimizu (ex staff member of the Research Department of the Headquarters, and the translator of the“Buyers Manual,” and currently, Professor of Josai International University (June 25, 2004)
Deputy Senior Manager of the Personnel Department (March 12, 2004)
Tobu Department Store
Representative Director and President (June 4, 2004)
Tokyu Department Store
Statutory Auditor (January 30, 2005)
Manager of the Management Administration Section (February 8, 2004 and August 20, 2004)

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