Japan Duty Free FaSoLa Mitsukoshi Isetan Co tells David Hayes that it is targeting a colossal 40% revenue increase for 2017 at its Japan Duty Free Ginza downtown duty free store.

 

This year’s buoyant trading outlook from Japan Duty Free FaSoLa Mitsukoshi Isetan Co follows lower than expected sales – due to various factors – in the company’s first full year of commercial operations.

 

However, business has picked up since December 2016 justifying the strong double-digit revenue forecast in 2017 for the downtown store, which is located in the Mitsukoshi department store in Tokyo’s premier Ginza shopping, entertainment and business district.

 

“Since last December our business has been going up, especially in February and March around the Chinese New Year holiday,” Hirofumi Minohara, Senior Director in Japan Duty Free FaSoLa Mitsukoshi Isetan Co Ltd’s General Affairs Department told TRBusiness.

 

REPEAT CUSTOMERS MAKE UP AROUND 30%

“We still have the same increasing trend today, so we expect a 40% sales increase this year.”

 

 

Sales at the Japan Duty Free Ginza store are expected to reach about US$60m in the financial year ending 31 March, 2018 (FY2017), up from about $45m in FY2016.

 

“There are more first time and repeat customers, both tourists and businessmen, but about 30% of our customers are repeat visitors,” Minohara said.

 

Most customers shopping in the Japan Duty Free Ginza store are foreign visitors and Japanese customers account for just 10% of sales at present. This is due to the fact that, at present, many Japanese outbound travellers are simply unaware they can make pre-order purchases in Japan’s new downtown duty free stores prior to travelling overseas.

 

“Over 80% of our customers are Chinese,” added Minohara “Our customers are mainly FIT visitors.

 

“Repeat customers come directly to our 8th floor downtown store while first time customers look around the whole of Ginza Mitsukoshi department store. They find out about our downtown store location at the ground floor information counter.”

 

The Japan Duty Free Ginza downtown store is around 3,300sq m in area and occupies the entire 8th floor of Mitsukoshi Ginza department store, which customers can access by escalator or elevator.

 

 

The unrivalled TRBusiness Japan Report will appear in the October issue, which can be picked up at the TFWA World Exhibition in Cannes. Alternatively, click here to subscribe to the magazine: https://www.trbusiness.com/magazine-subscription