Osaka operators face concessions hike

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Osaka Kansai fashion boutique operators face a 5% increase in rental payments as the airport prepares to open its new retail areas

Osaka Kansai fashion boutique operators have been told to expect a 5% increase in concession fees, to 25% of sales, as Kansai, Japan's second biggest airport, plans to open its new duty-free fashion areas.

TRW understands that airport authority Kansai International Airport Co (KIAC) has already notified the retailers of the hike, which applies only to fashion boutique operators, but has yet to tell them when the increase takes effect.

KIAC's official response today was to say that rates "are still under discussion". Any increase would be in addition to minimum guarantees from operators for the fashion spaces, which is Y42m ($400,000) for each 30sq m (323sq ft) space.

The addition of the new fashion spaces will bring total branded retail space at the location to 2,312sq m (24,877sq ft). The new development will increase commercial space by 18% and contains what the airport claims is the biggest Hermes boutique in the region at 120sq m (1,290sq ft).

In the airport's North Wing, KIAC and retail partner JATCo will operate one Bvlgari and one Cartier outlet, both spanning 60sq m (645sq ft). Salvatore Ferragamo is to make its debut at Kansai in a 60sq m outlet operated by Kansai Airport Industry. Celine will also debut in the North Wing in a 60sq m boutique operated by ANA Trading.

The 120sq m Hermes boutique will be operated by Blanc de Blancs in Kansai's South Wing, adjacent to KIAC's 60sq m Bvlgari outlet. Asahi Airport Service is to run a 30sq m Dunhill store alongside a similarly sized outlet for Montblanc, also making its debut at Kansai. Completing the line-up is a Cartier shop run by KIAC.