Japan Air Terminal Company (Jatco) has seen duty free sales rebound at Tokyo Narita Airport and is expecting a 15% sales rise, despite a strengthening yen.

 

Commenting before the dispute blew up between Japan and China over the East China Sea islands, Masao Orui, Director of Jatco’s Duty Free Business Division said: “Japanese and Chinese customers have come back to Narita. For Chinese passengers there is still demand for high-end Cognac, Chunghwa cigarettes and Maotai spirits,” Orui said. “Since last year the exchange rate has changed and the yen is stronger.”

 

In the financial year ending March 31, 2012 (FY2011), Jatco’s Narita duty free shops and boutiques reported total revenue of ¥9.5bn ($120m), down about 15% compared with revenue totalling ¥11bn ($141m) in the previous year because of last year’s terrible earthquake and tsunami.

 

[Left: Masao Orui, Director of Jatco’s Duty Free Business Division]

 

Currently, 90% of Jatco’s Narita revenue is recorded in the company’s four mixed category shops while 10% of total sales are accounted for in the two boutiques.

 

Perfume and cosmetics accounted for 40% of revenue in Jatco’s four Japan Duty Free mixed category shops.

 

Tobacco represents 30% of total revenue and liquor 10%, with general merchandise making up the balance. Handbags are the main items selling in the Hermès boutique.

 

“We are happy with business at Narita Airport. It’s still the largest international airport in Japan,” Orui said.

 

See exclusive interview in the October issue of The Travel Retail Business-Ed.