JAPAN REPORT: TIAT/JATCO


begins to normalise. Meanwhile, TIAT/T3 continues to


handle all international flights at the time of writing, an informed source tells TRBusiness, but duty free retail operations in T3 have been reduced to just one store owing to the small number of passengers. With the exception of its flagship


mixed category TIAT Duty Free store located at the centre of TIAT’s airside departure concourse, all of TIAT’s T3 duty free and tax free shops and brand boutiques have been temporarily closed since 7 April.


Reduced Chinese spending TIAT Duty Free Central is operating on a reduced schedule, so opening times correspond with flight departures, of which there are currently fewer than 15 per day. Sales at TIAT’s duty free and tax


free shops and boutiques showed a slight improvement during the first three quarters of FY2019 (ending 31 March 2020), according to JATCO’s annual report. JATCO also told shareholders


that the renovation of TIAT’s Duty Free Central Shop, including the expansion of the store’s beauty zone, lifted sales up to December 2019 compared with the same period in the previous year, despite reduced spending by Chinese visitors. However, from February 2020


the impacts of Covid-19, particularly the decline in Chinese passenger numbers due to flight cancellations


TIAT renovated seven luxury boutiques last year.


in China, could not be overcome, resulting in a 14.3% drop in sales to JPY84.4 billion year-on-year. About half of all flights from China


to TIAT were cancelled in February this year, says JATCO, while in March all flights from China and South Korea were cancelled, causing international arrivals at TIAT to dive by more than 80%. JATCO also reported significantly


lower sales at Narita Airport, where the company operates Japan Duty Free mixed category shops and luxury boutiques, and at the Japan Duty Free Ginza downtown duty free store in Tokyo’s premier Ginza district. Temporary store closures at Narita


Temporary duty free shops in T2 Annex


TRBusiness understands that the existing temporary Duty Free Beauty store and TIAT Duty Free Souvenir store – selling liquor, tobacco and confectionery – will be extended and upscaled in the future once TIAT prepares to re-open the T2 Annex for full operation. Staff for TIAT’s Duty Free Beauty zone


store will be sourced by TIAT’s largest shareholder, JATCO, while ANA Trading Duty Free Co Ltd will be responsible for staffing the TIAT Duty Free Souvenir area. As part of preparations to reopen the


T2 Annex, TIAT is expected to review the store’s duty free merchandise and brand selection along with in-store retail layout plans. It will also review T2 Annex’s arrival


OCTOBER 2020


TIAT’s expansion plans included building two more flight gates and the separate TIAT T2 Annex.


duty free shop offer, including imported liquor, tobacco and chocolate, as part of its reopening preparations. However, a wider product selection is


expected to be displayed when the full Annex arrival shop area is fitted out. In the planning phase, TIAT will take


into account the fact that many ANA passengers are Japanese travellers whose shopping habits and brand preferences differ significantly to foreign passengers. Japanese travellers, unlike foreign


visitors for example, do not buy many tax free goods in TIAT’s main terminal when traveling abroad as these items are normally available in their local shops. However, Japanese passengers are


interested in imported luxury brands including leather goods, jewellery, watches and other fashion items.


TRBUSINESS 39


With the exception of its flagship mixed category TIAT Duty Free store located at the centre of TIAT’s airside departure concourse, all of TIAT’s T3 duty free and tax free shops and brand boutiques have been temporarily closed since 7 April.


TRBusiness


Airport in the first half of FY2019 linked to shop renovations, together with a decline in spend-per-passenger and reduced Chinese travellers due to Covid-19 contributed to lower sales at Narita Airport and at the Japan Duty Free Ginza downtown store last year. «


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