JAPAN. Department store retailer Isetan Mitsukoshi has confirmed that it is considering plans to open a duty free store within its flagship outlet in Tokyo’s Ginza district.
The outlet would be the first duty free store in downtown Tokyo, offering goods exempt from tariffs as well as alcohol and tobacco taxes – as opposed to the many downtown stores offering products free only of sales tax.
However the retailer said plans had not gone as far as reported in local press yesterday, when it was suggested that Isetan Mitsukoshi will form a new joint venture to operate the business, with Haneda Airport operator Japan Airport Terminal Co holding a stake of around 50% and Narita International Airport Authority and Isetan each holding more than 20%.
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Products aimed at foreign visitors are taking a growing share of sales at Isetan Mitsukoshi’s Ginza flagship store |
The two Tokyo airports will house kiosks where passengers pick up their purchases after completing Departures procedures, the initial story from local business media Nikkei claimed.
The duty free store would serve Japanese passengers as well as foreign visitors. The size and product range of the store have yet to be finalised, although luxury goods are expected to feature strongly.
The retailer said: “A number of news organisations have published reports on an ‘airport type duty-free shop at the Ginza Mitsukoshi store’. It is correct that we are giving consideration to this project, but at the current stage there has been no official decision in this regard. Once definitive facts can be disclosed, these will be published in a timely manner.”
According to Nikkei, products aimed at foreign visitors have become a major profit source at the Ginza store, with tax-free goods accounting for more than 10% of sales in April.
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How the initative was reported by Japanese business news service Nikkei |
