Department stores in Japan are referred to as hyakkaten (百貨店) or depāto (デパート), an alteration of the English term.

The first "modern-style" department store in Japan was Mitsukoshi, founded in 1904, which has its root as a kimono store called Echigoya from 1673. However, Matsuzakaya has an even longer history, dating from 1611. The kimono store changed to a department store in 1910. In 1924, the Matsuzakaya store in Ginza allowed street shoes to be worn indoors, something innovative at the time.^[1] These former kimono-shop-turned-department-stores dominated the market in its early department store history. They sold, or instead displayed, luxurious product which contributed to their sophisticated atmospheres. Some Japanese department stores were developed by railway companies. There have been many private railway operators in the nation and, from the 1920s, they started to build department stores directly linked to their lines' termini. Both Seibu and Hankyu were developed by rail companies.

Since the 1980s, Japanese department stores have been facing fierce competition from supermarkets and convenience stores. Still, depāto are bastions of several aspects of cultural conservatism in the country. Giving gift certificates for prestigious department stores is used as a formal present in Japan.

From 1991 to 2008, sales per square meter dropped significantly: 43% in Osaka and 45% in Tokyo. Despite this, in the early 2010s, in Osaka in particular, there was a 50% increase in total floor space in the two key shopping districts of Umeda (around JR Osaka Station) and Minami (Namba-Shinsaibashi). In Umeda, West Japan Railiway Isetan^(ja) opened a new 50,000 m² (538,196 sq ft) flagship-style store, triggering major expansion by its neighbors Hankyu (from 61,000 to 84,000 m²) and Daimaru (from 40,000 to 64,000 m²), while Hanshin remained at 54,000 m². In Minami, Takashimaya expanded from 56,000 to 78,000 m², and in Abeno, Kintetsu grew from 48,000 to a whopping 100,000 m²,^[2] making it the largest department store in Japan.^[3] The resulting market saturation led West JR–Isetan to close in 2015, less than 4 years after opening; two-thirds of the space was converted to midsize shops and rechristened "LUCUA 1100"^(ja).^[4]

Department stores in Japan generally offer a wide range of services and can include foreign exchange, travel reservations, ticket sales for local concerts and other events.

Due to their roots, many Japanese department stores have sections devoted to kimono and traditional Japanese crafts, including pottery and lacquerware. The basement level usually has a grocery and food court, and on the roof may be garden and aquatic supplies, pets, and a children's play area.

Operating hours are usually from 10 am to 8 pm. Some close one day a week, often a weekday.

Some stores also have branches outside Japan.