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JAPAN REPORT: JATCO


will be unchanged,” he says. “We will finish by the end of


March 2019. We are planning the renovation now. “The shop design will be something


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new, but we will maintain the shop’s categories. The brands have their own concept and strategy, so we will have to remodel the counters.” Planning for the T2 shop renovation


scheme follows a recent upgrade to Jatco’s T1 Hermès boutique which was completed mid-May. “It’s Hermès’ design; it’s a flagship airport store,” comments Hayashi.


Int. pax terminal expansion Meanwhile, Jatco is preparing a major investment to expand international passenger terminal facilities, including duty free shops, at Tokyo’s downtown Haneda Airport. Duty free sales in Tokyo


International Airport Terminal (TIAT) are forecasted to grow by 21% in the coming year. This is not an unrealistic target, considering these shops registered a 20% increase in FY2017. [See a report on TIAT on p147]. Due to be completed in time for the


Tokyo Olympic Games, Jatco’s JPY 104bn ($936m) developments will see international passenger capacity increase by 50% once almost 50 new international flight slots become available (from 2020 onwards). Just prior to launching the


expansion scheme, Jatco increased its shareholding to 51% in TIAT, up from 34%. Meanwhile, domestic terminal T2


Jatco is reporting double-digit revenue growth at its two airport retail locations in Tokyo.


terminal can be converted into a new international terminal, which will also be operated by TIAT. ANA will transfer all its Haneda


international flight operations from TIAT to the new T2 international terminal, allowing other airlines to expand their operations at TIAT. Hayashi emphasises that the


development will benefit ANA passengers with connecting domestic and international flights. The reason for this is they will no


longer need to transfer between T2 and TIAT. In fact, Jatco is already planning to


construct seven new gates to handle international flight services that will operate from T2. Three of the new flight gates will


be dedicated to international flights, Hayashi explains, while the four other gates will be ‘swing’ gates, used for international flights at peak times (otherwise used for domestic flights). “Jatco has taken a 51% shareholding


(which is used by ANA) will definitely be expanded so that part of the


Merchandise shuffle downtown pays dividends for Jatco


Hideki Hayashi told TRBusiness that elsewhere in Tokyo, sales are picking up at Jatco’s Japan Duty Free Ginza downtown shop. This follows a recent review of the store’s merchandise, which is now targeted more at Chinese customers than previously. This was undertaken by the company


and its partners Ginza Mitsukoshi Department Store and Narita International Airport Corporation. “Our Japan duty free downtown


OCTOBER 2018


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in TIAT as there is much construction to be done in the current TIAT terminal and T2,” Hayashi confirms. “Currently, there are 110 international departure slots daily;


“Jatco has taken a 51% shareholding in TIAT as there is much construction to be done in the current TIAT terminal and T2.”


Hideki Hayashi, Japan Airport Terminal Co. Ltd


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sales are good,” says Hayashi. “Perfume and cosmetics have a 60%


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share. Japanese cosmetics brands are popular like Shiseido, SKII and Albion; also Japanese electrical goods. “We have changed some


merchandise – some boutiques have changed to offer affordable Japanese brands and well-known Italian brands, so more young Chinese ladies now visit our store.” Changes made earlier this year


include the opening of MaxMara and Tasaki pearl jewellery boutiques in February to replace the previous Valentino boutique. “Chinese customers like pearls


and red coral jewellery,” according to Hayashi. Other new arrivals in February included Montblanc and Baume & Mercier watch collections, both of which were displayed in the store’s Time Valley foreign watches zone.


TRBUSINESS 157


there will be an increase of almost 50 international flight slots for Haneda’s summer flight schedule after 2020.” Planning for the T2 international


flight zone is underway, however, details have yet to be disclosed. “The expansion is exciting as we


have an opportunity to increase our duty free sales,” Hayashi tells TRBusiness. “However, the distance between


T2 and TIAT makes it not easy to transit; also, there is limited retail space in T2. “Our plan is that passengers will


have the same service level in the T2 international flight area as TIAT. “There are 17 boutiques in TIAT,


but maybe we cannot do this in T2; that’s our headache.” «


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