Yamada-Denki Co., Ltd., a major mass merchandiser chain, has announced that it will open the first duty-free specialty store in Tokyo’s Shimbashi area, J-Cast News (26 March) reported.
The LABI Amenity & Tax Free Shimbashi Ginza-guchi store, which is expected to open for business in mid-April, will boast approximately 4,100m2 of sales floor, making it one of Japan’s largest duty-free retailers. Located close to JR Shimbashi Station, it will occupy eight floors.
In addition to electric appliances, designer brand goods, cosmetics and other items, the new LABI shop will feature Japanese souvenirs and merchandise typically found in a chemist.
A spokesperson for the firm explained its rationale for setting up shop in Shimbashi, saying, “The area continues to change, with more foreign visitors adding to the mix of others from a wide age range.
“Our shop will appeal to this mix of customers by offering the ideal venue for new shopping discoveries”.
Among such discoveries will be cosmetics for men and an AGA clinic that will counsel balding customers on hair restoration treatment and preparations.
Also responding to the surge in demand from foreign visitors is Isetan Mitsukoshi Holdings, which plans to open Japan Duty Free Ginza in autumn. This shop will feature 3,300m2 of sales area and marks the first such venture by the firm outside Okinawa Prefecture.
Later this year, South Korean firm Lotte, which is affiliated with the chewing gum and confectionary manufacturer in Japan, is planning to open an airport-style duty-free shop in the Ginza 5-chome area.
It will occupy the eighth and ninth floors of an 11-storey building. Customers will be able to pick up their purchases prior to departure at Tokyo International Airport Haneda or Narita International Airport.
According to the Japan Tourism Agency, as of 1 October 2014, some 9,361 duty free shops were in operation in Japan. There were an additional 3,584 new shops—a leap of 62%—since 1 April of the same year. Of the total, about one-third, or 3,268, are located in Tokyo.
Two factors are believed to be responsible for the current growth. One is the considerable increase in the types of goods that, since October 2013, may be sold duty free, including foodstuffs and cosmetics.
The second factor is the record-breaking number of foreign tourists who, last year, exceeded 13mn. In 2014, their financial outlays grew 43.3% year on year, while their outlays for purchases of goods, at ¥7.1bn, surpassed that for accommodation (¥6.1bn).