Shinsaibashi is the commercial centre of Greater Osaka, mainly comprised of Mido-suji, with a cluster of luxury brands and large-scale retail stores, and Shinsaibashi-suji, where fast fashion and drugstores stand. Shinsaibashi draws from not only the Greater Osaka region – the third largest economic region in Japan with an estimated GDP of USD 749 billion and a population of 20.4 million, ranking eighth in GDP and eleventh in population globally – but also overseas. The retail catchment of Shinsaibashi has extended in recent years, as consumption by visitor arrivals continues to grow on the back of supportive government policies such as visa relaxations and improved air connectivity. In February, duty free sales from department stores alone have increased 40% y-o-y.
As such, JLL Research was keen to understand the size of this market, conducting an initial study. We have focused this upon selected stand-alone retail stores located alongside Mido-suji the high-street, and Shinsaibashi-suji, the arcaded street east to Mido-suji.
Shinsaibashi retail stock is circa 35,000 sqm
23% of this is concentrated in high-street Mido-suji and 77% on the side street Shinsaibashi-suji.
Figure 1: Retail Stock in Osaka
Additionally, we identified the characteristics of the market by taking a two-prong approach of aggregating the store space based on the type of owner and goods sold.
Type of owner: Financial institutions control stock
Financial and insurance services account for 40% of owners, followed by real estate companies at 29% and other general companies at 14%. Surprisingly, individual owners account for only 3% of the ownership. Sole proprietorship accounted for 93% of assets whereas co-owned accounted for 7%.
Figure 2: Retail Space by Type of Owner
Major goods sold: Apparel and leather goods retailers take up space
Apparel and leather goods retailers account for 56% of space, followed by jewelry and watches at 20% and showrooms at 12%. We will continue monitor these figures, in particular growth of certain categories including sports and electronics goods retailers as these have been growing in recent years.
Figure 3: Retail Space by Goods Sold
Looking ahead we expect to see new developments attract more domestic and foreign clientele
Further development is expected in Shinsaibashi, with the scheduled redevelopment of the renowned Daimaru Department Store due in 2019 and with a certain portion of the stock conforming to the former anti-seismic standards. This redevelopment is expected to further enhance the attraction of the city as a retail hub, appealing to both domestic and international clients.
Look out for further information relating to the retail stock in Osaka and Tokyo – out soon!
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