A surprising development in Japan's retail market reveals that a store has managed to double its annual sales by banning 30 problematic customers. The decision, unheard of in the industry, has led to annual revenue skyrocketing as the store is able to attract and cater more effectively to other customers. The specifics about the shop and its modus operandi have not been disclosed yet.
In Japan, the relationship between business owners and customers is central to commerce, often underpinned by a degree of respect and obligation. Although the retailer’s move could be seen as controversial, it indicates a fresh perspective in managing quality service within the Japanese mindset. If customers were causing disturbances that created an unenjoyable shopping atmosphere, the business may have had no choice but to resort to such measures.
In the US and EU, banning of customers is also practiced, but it's typically on the grounds of abusive behaviour or violation of store policies. The ban usually has little to no reported impact on overall store revenues though and isn't popularly recognized as a business strategy. Additionally, in these regions, customer service is seen as a way to diffuse difficult situations rather than resorting to outright bans.