Narita International Airport Corporation (NAA) has told TRBusiness it is in the midst of a new retail management plan to 2021 that contains an extension of the popular Fifth Avenue shopping precinct at Terminal 2.
The operator will also seek to renew the duty free shops and reorganise the merchandise mix at Terminal 1, according to a mid- to long-term airport management document seen by this publication.
Confirming the development recently, Chihiro Oshima, NAA Retailing said: “We have a new retail management plan – in terms of retail, this is very important.
“We have been upgrading the commercial area over the years and this is one of the new plans to provide our customers with more beautiful experiences in Narita’s retail area. From a financial, point of view, we have lots of plans for the facilities.”
TERMINAL 3 IN FOCUS
While further detail on potential new shops and brands at Terminal 1 was not immediately available, digital marketing activities and cashless transaction platforms are expected to play an important role in the refreshed area.
“We will create attractive retail space that can adapt quickly to changes in customer needs amid dramatic changes in markets brought about by increasing visitors to Japan from Asia and other countries to improve customer satisfaction and optimise profitability,” read the document.
Building more airside duty free shops at Terminal 3 to cater to Narita’s growing low-cost carrier passenger base is a ‘long term vision’.
Capital investment at the retail areas at Terminal’s 2 and 3 is estimated at JPY8bn/$76m between 2019 and 2021.
“At Terminal 3 we have a plan to expand the floorspace first then extend the building itself,” clarifies Oshima. “The first [phase], extending the floorspace, will be done by spring 2020 before the [Tokyo Summer 2020] Olympics and Paralympics.”
NAA’s latest vision follows a busy 12 months in which it has completed the delivery of 17 new shops in Terminal 1 across an enlarged 2,400sq m footprint.
Total airside and landside retail and F&B sales grew by 15% to JPY143.2bn/$1.29bn in 2018.
Duty free sales, which includes contributions from FaSoLa Duty Free, JATCO, ANA Trading Duty Free Co. and JAL DFS, totalled JPY78.2bn/$708m.
International passengers grew by 7% to 35.4 million in 2018.
For an in-depth analysis of Narita International Airport’s retail operations, including an update on Terminal 1 and the arrivals duty free business, see the August Top 10 Airports report. Plus, watch out for the annual Japanese Market report in the October edition.
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