Viewpoint | Creating Resilience

Japan Report - Japan's Retail Market During the Pandemic: from Seven Perspectives Apr 2022

April 20, 2022

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  • CBRE conducted a survey of street-facing stores newly opened in 2021 in the high street areas of Tokyo (Ginza, Omotesando, Harajuku), Osaka (Shinsaibashi), and Nagoya (Sakae). In terms of sheer numbers, there were a total of 72 new openings in 2021, an increase of nine from the 63 recorded in 2019.

 

  • Retail categories in which new openings increased between 2019 and 2021 were luxury goods, reusable and recycled goods, showrooms, and furniture and general goods. These stores are all from industries or companies which have seen their sales increase during the pandemic.

 

  • Floor space in which new openings increased between 2019 and 2021 was in the 150 to 250 tsubo brackets. Some 40% of retailers opening new stores between this bracket were luxury goods providers, with showrooms and outdoor and sporting brands also represented multiple times in the figures.

 

  • New stores with rent levels of JPY 5 million and 10 million increased in number from 2019 to 2021. This rent bracket included multiple retailers of second-hand luxury goods, and multiple outdoor and sporting brands selling items such as sneakers.

 

  • The results of the survey of new store openings in 2021 show that major leasing trends differ significantly by area. CBRE believes that the development of specific leasing strategies based on the market situation within each area and even on each street will be crucial for the landlords prior to entering lease negotiations.