Takashimaya Tokyo going duty free
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Eyeing the growing tourist market, Japanese department store Takashimaya is going duty free with an airport-style store in Tokyo.
Not only sales tax, but also alcohol and tobacco duties will be waived under the venture, in which the Takashimaya Tokyo store is partnering with ANA Holdings and South Korea’s Samsung Group.
Takashimaya will contribute more than half of the capital for the outlet, establishing an oversight company with All Nippon Airways Trading and Hotel Shilla of the Samsung Group. Scheduled to open next spring, the store will probably be on an upper floor of Takashimaya’s Shinjuku branch. Depending on its performance, the partners may roll out further stores.
Shoppers will be able to buy items in-store to pick up later at Haneda or Narita airport after completing departure procedures.
Hotel Shilla, which runs hotels and duty-free stores, generated sales of 3.25 trillion won (US$2.73 billion) last year. The company is second only to the Lotte Group for duty-free stores in South Korea, and its international presence includes Singapore’s Changi Airport.
ANA Trading runs airport souvenir shops.
Visitors to Japan increased 47 per cent last year to 19.73 million, according to the Japan National Tourism Organization. More people are travelling there multiple times a year and visiting localities outside greater Tokyo via train and bus. A major bus terminal is slated for completion in Shinjuku this spring.
Takashimaya rival Isetan Mitsukoshi Holdings opened a similar duty-free store in Tokyo’s Ginza area in late January.
Questions & Answers
Q.Which companies are partnering with Takashimaya Tokyo for this duty-free venture?
Which companies are partnering with Takashimaya Tokyo for this duty-free venture?
Takashimaya Tokyo is partnering with ANA Holdings and South Korea’s Samsung Group. An oversight company will be established with All Nippon Airways Trading and Hotel Shilla of the Samsung Group to manage the new store.
Q.When is the new duty-free store expected to open, and where will it be located?
When is the new duty-free store expected to open, and where will it be located?
The new duty-free store is scheduled to open next spring. It will probably be on an upper floor of Takashimaya’s Shinjuku branch in Tokyo, using the nearby new bus terminal.
Q.What is the expected sales tax benefit for shoppers at the new store?
What is the expected sales tax benefit for shoppers at the new store?
Shoppers at the new store will benefit from sales tax waivers, as well as alcohol and tobacco duties being waived under this venture. This offers airport-style savings on various purchases.
Q.What is the capital contribution arrangement for the new duty-free outlet?
What is the capital contribution arrangement for the new duty-free outlet?
Takashimaya will contribute more than half of the capital for the new outlet. This significant investment underscores their commitment to the partnership and the duty-free expansion.