As part of efforts to promote Japan's tourism-oriented nation, Isetan Mitsukoshi Holdings, Japan Airport Terminal Co., Ltd., Narita International Airport Co., Ltd., and NAA Retailing Co., Ltd. have jointly established a new joint venture to operate Japan's first airport-style duty-free store in the Tokyo metropolitan area. The goal is to combine the companies' duty-free business expertise and management resources to improve convenience for international visitors and stimulate new consumer demand among domestic and international travelers departing Japan.
The Tokyo metropolitan area's first airport-style duty-free store will occupy the entire eighth floor (approximately 3,300 square meters) of the Mitsukoshi Ginza store and is scheduled to open in the fall of 2015. The store will offer luxury brand clothing, jewelry, watches, cosmetics, and more, with sales targets of 10 billion yen in the first year and 13 billion yen from the following year onward.
A distinctive feature of airport-style duty-free stores is that in addition to the traditional tax exemption limited to the consumption tax portion of products offered at department stores and electronics retailers, they will also be exempt from import duties, alcohol, and tobacco taxes. Japan Airport Terminal Co., Ltd. operates the terminal building at Haneda Airport, and Narita International Airport Co., Ltd. operates Narita Airport, which has been an issue, and the establishment of the new joint venture will enable the establishment of a product delivery system, which has been an issue, and the first airport-style duty-free store in the Tokyo metropolitan area will be set up inside Mitsukoshi Ginza. Customers using the airport-style duty-free store will present their passport or airline ticket when making a purchase, and will pick up their products at Haneda or Narita Airport.
Japan Airport Terminal Co., Ltd. will hold 45% of the investment in the new joint venture, Isetan Mitsukoshi Co., Ltd. (tentative name), with Isetan Mitsukoshi holding 27.5% and NAA Retailing holding 27.5%. The capital will be 10 million yen. The company is scheduled to be established in September of this year. A representative has not yet been decided. At a press conference held in Tokyo on the afternoon of the 31st, Isao Takashiro, President and CEO of Japan Airport Terminal Co., Ltd., Hiroshi Onishi, President and CEO of Isetan Mitsukoshi Holdings Ltd., and Masahiro Gamo, President and CEO of NAA Retailing Co., Ltd. all took to the stage. Takashiro of Japan Airport Terminal Co., Ltd. stated, "As Japan strives to become a tourism-oriented nation, we believe that urban duty-free stores are a way of welcoming foreign visitors. To differentiate ourselves from overseas duty-free stores, we aim to create a store that combines uniquely Japanese hospitality with cutting-edge technology." Onishi of Isetan Mitsukoshi stated, "Of the approximately 70 billion yen in annual sales at the Mitsukoshi Ginza store, approximately 7% comes from foreign customers. By combining the strengths of our four companies, we will create the best downtown duty-free store and offer a uniquely Japanese product selection that will satisfy our customers."
NAA Retailing's Mr. Gamo said, "The establishment of new duty-free stores in the city will improve convenience for foreign visitors to Japan, giving them the opportunity to enjoy shopping without having to worry about departing the country."
