Takashimaya partners with ANA and Shilla for Shinjuku downtown duty free

JAPAN. Leading department store company Takashimaya has formed a joint venture with All Nippon Airways Trading and Hotel Shilla in order to launch an airport-style duty free store in Tokyo.

Yesterday Takashimaya announced plans for the shop on the 11th floor of its Shinjuku store in spring 2017.

Merchandise will include luxury brands, cosmetics, watches, jewellery, general goods, home appliances, liquor and cigarettes – all sold exempt from consumption tax, customs duties, liquor tax and tobacco tax.

The sales target for the first year is JPY15 billion (US$133 million).

Shinjuku is a popular shopping destination for international visitors, and with the completion of the JR Shinjuku Station New South Gate, Takashimaya expects even greater numbers of visitors.

The store’s 11th floor currently hosts an exhibition hall, tourist services, Japanese goods and eyewear.

The new company will also consider opening a second shop in the Osaka area.

Takashimaya is investing 60% of the company’s JPY980 million (US$8.7 million) capital, with ANA Trading and Hotel Shilla holding 20% respectively. No corporate name has yet been decided.

The partners are moving to match the rapid expansion of other department stores into the downtown duty free store space, as reported.

Investors are banking on the growth of tourism in Japan: international visitors in 2015 reached nearly 20 million, and in 2020, the year of the Tokyo Olympic and Paralympic Games, the number is expected to exceed 30 million.

“Against this backdrop, we will expand Takashimaya, ANA Group’s ANA Trading, and Samsung Group’s Hotel Shilla business globally, and form a three-way joint venture with a view to stimulating further consumer demand among international visitors to Japan and establishing commercial facilities that enable more convenient shopping,” Takashimaya said in an official statement.

“The new joint venture is designed to fully capitalise on the respective strengths of each partner. For example, Takashimaya will contribute its expertise in retail curation, and its ability to procure merchandise by leveraging the creditworthiness and financial clout it has built up over many long years in retail.

“ANA Trading will contribute its expertise in existing airport-based duty free shopping, and Hotel Shilla will contribute its expertise in city-type duty free shops in overseas countries such as South Korea, and its customer attraction power.

“Takashimaya will act as the managing entity in order to make the city-type duty free shop an integral part of the department store, thereby creating a shopping experience that is more attractive than what our rivals offer.”

Takashimaya’s store in Tokyo’s bustling Shinjuku district
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