Another reason fewer customers are going to department stores – clothing and fast-fashion retailers are opening stores in the center of the cities, in some cases near the department stores. With the economy still struggling to recover, the demand for trendy and inexpensive fashion as well as lower rents are making it easier for clothing and fast-fashion retailers to open stores in urban city centers – thus drawing customers away from their higher profile department store retailers.
This year alone Fast Retailing will open 60 Uniqlo stores in Japan mostly in city centers are close outlying areas. Similarly, Aoyama Trading Company will open 2 men’s clothing stores: one in Shibuya and a newly renovated store in Tenjin, Fukuoka. This does not included the new store Aoyama Trading Company opened in Ginza in October. Not too be left out Point Inc. is also opening stores in urban areas including Shinjuku this Wednesday. Shimamura Co. is also in on the action recently opening a new store in Yokohama.
Store openings in Japan are nothing new but what is new is the size of the stores being opened. Due to the recent rent decreases most of the store openings in the city centers are up to 50% larger than their typical retail outlets.
Retail has just gotten more interesting.
Data Fast Retailing Co., Aoyama Trading Co., Shimamura Co., Point Inc.