Traffic plunge pushes 12 Narita International stores out of business

JAPAN. A severe fall in passenger numbers at Tokyo Narita International has pushed 12 stores in Japan’s main hub airport out of business, according to the Japanese news website The Mainichi. The closures come despite an ongoing relief programme by the airport operator.

The news agency also said that in the face of the COVID-19 pandemic other tenants are considering closing permanently.

Duty free stores have been hard hit after being starved of passengers at Narita International Airport

Of the 460 tenants in the airport 264 have closed temporarily. Between 1 and 22 August, international passenger numbers dropped by -97% year-on-year. Meanwhile, sales at about 300 F&B units, duty free and other retail stores, fell by -95%.

Normally, contracts with Narita International commit tenants to paying a minimum fixed rent amount regardless of monthly sales, but in May the airport operator rolled out temporary relief measures including reductions in, or exemptions from, the minimum rent.

On 27 August the company announced it would extend the support until March 2021, raising the value of the relief to some JPY6.6 billion (US$62.57 million).

At a press conference, Narita International Airport Corp President Akihiko Tamura said: “We can assume that it will take considerable time for aviation demand to recover, and that the severe conditions for tenants will continue going forward.

Between 1 and 22 August, international passenger numbers at Narita International dropped by -97% year-on-year

“We are reducing tenant expenses in this way so that they can endure through these harsh times, stabilise the stores’ management and allow them to be absolutely ready to welcome visitors back when demand recovers.”

The airport company said it has also been discussing support measures for fiscal 2021 onward.

Clothing stores, general goods shops, food stores, and nail salons at the airport have been shut since the end of May. Other types of businesses have also closed temporarily and some have cancelled plans to set up new stores or renovate existing ones in the terminals.

Total sales in 2019 for the 300 eateries, retail shops, and duty free stores in the airport were JPY127.9 billion (US$1.21 billion).

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