Japan Airport Terminal Co., Ltd. has resolved at a meeting of its Board of Directors to withdraw from the downtown duty-free shop “Japan Duty Free GINZA” located in Ginza Mitsukoshi department store in Tokyo, Japan.
The store is operated by its consolidated subsidiary Japan Duty Free Fa-So-La Mitsukoshi Isetan. Equity in the subsidiary is held 67.5% by Japan Airport Terminal, 27.5% by NAA Retailing, and 5% by Isetan Mitsukoshi Holdings.
The company will begin discussions with NAA Retailing and its parent company Narita International Airport Corporation, as well as with Isetan Mitsukoshi Holdings, regarding the future direction of the business. As the fixed-term building lease agreement is set to end on January 31, 2027, the store is scheduled to close as early as September.
“Japan Duty Free GINZA” opened in 2016. It turned profitable in the fiscal year ended March 2018. Although earnings deteriorated during the COVID-19 pandemic, the store returned to profitability in the fiscal year ending March 2025.
On the other hand, the company judged that the risk of continuing the business is high due to factors such as the inability to roll out the originally envisioned lineup of fashion, watch, and jewelry brands; the ongoing difficulty of business operations caused by changes in the consumption behavior of inbound foreign travelers to Japan; and structural issues including the heavy reliance of sales on travelers from specific countries and regions.
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