JAPAN REPORT: NAA NARITA FASOLA


New shops boost revenue +16% for FaSoLa


FaSoLa Duty Free, Narita International Airport’s largest travel retail operator, is targeting a consecutive year of double-digit revenue growth for financial year ending 31 March, 2018 (FY2017) as David Hayes reports.


F


aSoLa Duty Free (FaSoLa) expects a steady increase in sales this year as the company


opens more duty free and airside tax free stores to serve rising numbers of Chinese and other foreign passengers using Narita Airport. “Last year was very busy,”


says Takumi Shimizu, Director of International Product Division I in NAA Retailing Corporation’s FaSoLa Duty Free Purchasing Department, in an exclusive interview with TRBusiness. “We had record sales that reached


almost JPY 71bn ($639m). We focused on the expansion of our retail space, so last year we created duty free arrival shops, new brand and cosmetics boutiques and a new tax free store. “This year we have opened T1


central area shops including an Akihabara Tax Free Shop annex on 21 July, which is over 250 sq m and our FaSoLa Stars Duty Free and FaSoLa Stars Tax Free Stores at the end of July.” In the last 12 months, FaSoLa


opened a Bottega Veneta boutique in T1 North Wing on 25 November – replacing Chanel Fragrance & Beauty, which has moved to a larger unit


OCTOBER 2018


nearby – as well as a FaSoLa Asakusa Tax Free Shop, which opened in T1 North Wing on 1 December last year. FaSoLa operates as the retail arm


of NAA Retailing Corporation, a subsidiary of Narita International Airport Corporation (NAA), which owns and operates Narita Airport. Now operating 95 landside and


airside outlets, FaSoLa recorded total duty free, tax free and restaurant sales of JPY 70.8bn ($637m) in the financial year ending 31 March, 2018 (FY2017). This represented a 16% increase compared with revenue of JPY 60bn ($540m) the previous year, when sales were affected by a dip in Chinese passenger spending.


Japanese brands appeal FaSoLa’s 67 airside duty free and tax free shops and boutiques recorded over 95% of total sales last year, say Shimizu, while the company’s 28 landside shops and restaurants combined registered less than 3% of total revenue. Airside duty free shops accounted


for about 40% of total revenue – the same share as FaSoLa’s airside tax free shops – while luxury boutiques represented about 15% of total sales. Perfume and cosmetics was the


largest duty free category in FY2017, accounting for almost 60% of duty free sales, while the tobacco category generated 25% and liquor 12%. Japanese cosmetics continue to


enjoy strong demand among foreign customers, particularly Chinese passengers, with some of the most popular brands facing supply shortages this year. Japanese whisky sales also


continue to grow even though supplies remain limited due to insufficient whisky stocks affecting all major Japanese whisky brands. Suntory Hibiki, Yamazaki and


Hakoshu are the top-selling Japanese whiskies, with the main customers being foreign passengers. Japanese sake is also selling well


to foreign visitors, including Junmai Daiginjo, the premium sake category. Meanwhile, popular imported


Now operating 95 landside and airside outlets, FaSoLa recorded total duty free, tax free and restaurant sales of JPY 70.8bn ($637m) in the financial year ending 31 March, 2018 (FY2017), representing a 16% increase year-on-year.


TRBusiness TRBUSINESS 141


Above: Perfume and cosmetics was the largest duty free category in FY2017, accounting for almost 60% of duty free sales for FaSoLa.


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