JAPAN REPORT: NARITA INTERNATIONAL AIRPORT CORP (NAA) Unlock the full potential...
Narita Airport shoots for 12% revenue growth
Narita International Airport Corporation (NAA) recently opened 17 new duty free and tax free stores and tells David Hayes that it has set a 12% revenue growth target for FY2018.
N
arita International Airport Corporation (NAA), which owns and operates Narita
International Airport, is targeting double-digit growth for travel retail sales this year after recently completing a 12-month retail expansion programme. This involved opening 17 new
airside duty free and tax free shops, many of them in new locations. Although NAA focused largely
on upgrading and expanding duty free shopping facilities in the central area of Terminal 1 (T1), the retail development scheme also included the opening of five duty free arrival shops in T1, T2 and T3. In doing so Narita Airport became the first Japanese airport to offer arrival duty free shopping, as reported by
TRBusiness.com. “Financial year ending 31 March,
this. We had a lot of passengers last year, especially from China and they contributed to our sales result. “Our fragrance, cosmetics, liquor
and tobacco sales were boosted last year.” Four operators run duty free
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shops at Narita Airport, but FaSoLa Duty Free, the retail arm of NAA Retail Corporation, is the largest and registers over 50% of Narita Airport’s total travel retail sales. The three other operators include
2018 (FY2017) was a good year,” Hiroomi Eguchi, Deputy Vice President, Retail Operations Department Marketing Division tells TRBusiness. “We had JPY 124.6bn ($1.12bn)
revenue for airside, landside retail sales and restaurants. This was 14.8% up compared to FY2016. It’s our best year. There are some reasons for
OCTOBER 2018
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Japan Duty Free, a subsidiary of Jatco, the largest shareholder in Tokyo’s downtown Haneda International Airport; ANA Trading Duty Free Co. Ltd, the trading arm of All Nippon Airways (ANA); and JAL-DFS Co. Ltd, a retail joint venture formed by JALUX Inc. the Japan Airlines (JAL) trading subsidiary and DFS group, the international duty free operator. Duty free sales generated by these
www.trbusiness.com/subscriptions Hiroomi Eguchi,
operators account for slightly more than 50% of NAA’s combined travel retail and F&B revenue and reached a total of JPY 64.5bn ($580m) in FY2017. “Our duty free revenue increased
25% last year while general merchandise sales including tax free shop purchases grew 5%,” says
using Narita Airport increased by 4% in 2017, and foreign passenger
“Our duty free revenue increased 25% last year while general merchandise sales including tax free shop purchases grew 5%.”
Deputy Vice President, Retail Operations Department, NAA’s Marketing Division
TRBUSINESS 137
JPY 139bn target Eguchi revealed that rising foreign passenger numbers, particularly Chinese travellers, are driving sales growth in Narita Airport’s duty free and tax free stores. “For duty free and tax free sales our
target is 12% growth this year, a total of JPY 139.2bn. We are confident.” The total number of passengers
Eguchi. “Tax free sales are mainly confectionery and [this] growth is slower. “Perfume and cosmetics is the
fastest growing category, especially Japanese beauty brands such as SKII and Shiseido.”
Above: FaSoLa Duty Free recently opened several new stores in the central terminal area.
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