Despite leading the first strike in 61 years at a major Japanese department store, Yasuhiro Teraoka’s former nemesis appointed him manager of Seibu’s flagship store in Tokyo’s Ikebukuro district.
Fortress Investment Group, a U.S. investment fund that now owns Sogo & Seibu Co., on May 1 hired Teraoka, 54, as head of store, the site of a strike that he had organized in late August 2023.
Teraoka entered Seibu Department Stores Ltd., a predecessor of Sogo & Seibu Co., in 1993 after the collapse of Japan’s asset-inflated economy.
He later became chairman of the central executive committee of a labor union representing 4,000 employees of Sogo & Seibu.
After experiencing the ups and downs of the industry, Teraoka still believes that working at a department store is something special.
“The proceeds can change depending on how the sales sections are specifically arranged to attract shoppers, even though we may handle the same products,” he said. “This feature lies at the core of the department store business.”
A few years ago, Fortress Investment Group announced its plan to acquire a significant stake in Sogo & Seibu from the chain’s parent company, Seven & i Holdings Co.
Fortress Investment proposed that management of the major section of the Seibu Ikebukuro main store be transferred to leading electronics retailer Yodobashi Camera Co. to improve economic viability.
The labor union, led by Teraoka, voiced grave concerns about the proposal, particularly regarding employment retention, and called a strike.
“We were confident that we could adapt to changing times and survive all by ourselves,” Teraoka recalled.
Public sentiment shifted strongly in favor of the labor union as local residents and landowners did not want to lose the familiar “face” of the town.
Despite all that, Seven & i Holdings decided to sell its shares of Sogo & Seibu to Fortress Investment.
Teraoka was set to leave his post at the labor union in spring this year. He was trying to decide whether to work for Fortress Investment or seek a fresh start at another corporation and close a chapter in his career as a unionist.
However, the Fortress Investment side asked him to serve as manager of the Seibu Ikebukuro main store.
Teraoka said he was persuaded to stay to make full use of his passion to keep the store operational and his adeptness to bring the union members together.
The Seibu Ikebukuro main store is currently undergoing renovation work as part of the new owner’s strategy.
“It is no longer possible for us to design the outlet in an anything-goes fashion like in the past,” Teraoka said. “We will be making every effort to provide shoppers with extraordinary experiences while taking advantage of the regional attributes of Ikebukuro, which has been thriving with Japanese anime and other pop culture.”
Teraoka emphasized the importance of dialogue in averting a possible new strike at the flagship store.
“Mounting a strike is one of the natural rights of workers,” he said. “However, strikes can be avoided as long as labor and management accumulate careful talks with each other.”
AloJapan.com