JAPAN. NAA Retailing (NAAR), a joint venture between the Narita Airport Authority and Japan Air Terminal Company (JATCO), has been achieving strong results since its formation, with its branded boutiques beating 2002 sales for the past few months.
NAAR Senior Vice President Takaaki Iwamatsu told The Moodie Report that sales for the partnership’s Bvlgari boutique at Tokyo Narita Airport hit Â¥32 million (US$308,000) in September this year, compared to Â¥19 million (US$183,000) in September 2003.
While results in 2003 were still skewed by the lingering impact of SARS on outbound travel, the September 2002 figure was also ¥19 million.
At the Hermès boutique, sales grew to Â¥21 million (US$202,000) this September, compared to Â¥19 million in 2002 and Â¥14 million (US$135,000) in 2003.
NAA Retailing took over the running of these shops from affiliate company Narita Airport Promotion Foundation in mid-2004.
Iwamatsu noted that changes to supply chain and shop operations had driven the positive results. “First we are controlling the stock [better], and number two, we are checking out inventory, and thirdly, sales staff are constantly being motivated,” he said. Sales teams who exceed sales targets are given monetary incentives.
NOTE: For a full report on the joint venture and other developments in Japanese duty free, look out for the next print edition of The Moodie Report.
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NAA Retailing opens two new stores at Tokyo Narita as ambitious expansion drive quickens – 16/11/04
