MEGA Don Quijote Shibuya Main Store, in Shibuya Ward, Tokyo. (©JAPAN Forward by Kenji Yoshida)
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After years of pandemic-induced paralysis, Japan's tourism revival is in full swing.
According to the Japan National Tourism Organization, more than 30 million foreign visitors had arrived by September 2025 — a 17.7% jump year-on-year.
The rebound is rippling across the economy, breathing new energy into hotels, restaurants, and commerce. But few have ridden this wave with more flair than Don Quijote, Japan's dominant discount retailer.
Known for its neon-lit storefronts, maze-like aisles, and eclectic collection of gadgets and household items, Don Quijote — or "Donki," as it's affectionately called — has become more than just a discount store. It's transforming into a cultural landmark.
Tailored to the Neighborhood
"Visitors to Japan continue to grow, but the most notable shift since pre-pandemic times is the sharp rise in travelers from the West," says Motoki Hata, who manages the company's inbound support division.
Tourists from East Asia often gravitate toward pharmaceuticals and daily necessities, while those from Europe and the United States are more likely to seek character goods and uniquely Japanese experiences, he adds.
At every location, from Asakusa to Shibuya, the company adapts its product selection and store layout to reflect local tastes and characteristics.
"Our strength," Hata explains, "is giving each store the autonomy to respond directly to its neighborhood demands."
Momentum at Home and Abroad
The company also provides comprehensive hospitality.
Multilingual staff assist customers, and tax-free purchases are processed at the cashier. Halal-friendly sections cater to Muslim travelers, while extra suitcases are available on-site for shoppers whose luggage is overflowing.
At the heart of its inbound strategy is Donki's private label. Partnering with companies like confectionery giant Morinaga and top cosmetics brands, it creates products that blend everyday practicality with playful, eye-catching design.
To extend its reach, Donki has begun leveraging overseas touchpoints. In July, the company teamed up with South Korean convenience chain GS25 to host a pop-up event in Seoul, drawing widespread interest from local shoppers.
"There's no Don Quijote in South Korea yet, so people were genuinely excited — it really felt like Donki had finally arrived," Hata recalls.
Showcasing private labels and handing out coupons redeemable at stores in Japan, the pop-up turned local enthusiasm into a boost for inbound tourism.
A New Kind of Retailer
These initiatives form part of the long-term management plan "Double Impact," unveiled in August by PPIH, Donki's parent group.
With targets of approximately $27.5 billion USD in sales and $2.2 billion in operating profit by 2035, the retail giant has placed inbound tourism at the center of its growth strategy.
Still, competition remains fierce. Rival chains compete on price, selection, and novelty, compelling the discount retailer to offer more than just a simple shopping experience.
In response, Donki began launching seasonal events such as mochi-pounding sessions and Japanese fruit tastings, inviting customers to experience Japan's culture firsthand. While they are currently limited to a few pilot stores, the company aims to expand them in the future.
"If you come to Japan, you have to go to Donki." With that rallying cry, Don Quijote is transforming itself into a new kind of retailer for global travelers.
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Author: Kenji Yoshida
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