Inside the Ginza Six department store in Tokyo. Shutterstock.
The Olympic games typically bring a boost to host countries’ retail and hospitality businesses, but Japan will miss out following a ban on foreign spectators aimed at curbing the spread of Covid-19, Retail News Asia reports.
Though developers have invested around 300 billion yen (around $2.7 billion) in readying the Shibuya district’s shopping and dining spaces in recent years, a much-needed uptick in sales from tourist spending will not be happening anytime soon. Take Shibuya Scramble Square, a 230 meter skyscraper among the Shibuya projects developer Tokyu Corp poured 110 billion yen ($1 billion) into in anticipation of the 2020 games, later postponed to 2021.
Beyond Shibuya, major luxury department stores like Mitsukoshi and Ginza Six are also suffering from travel restrictions. Sales of 196 stores in the country counted a total of 326.5 billion yen ($3 billion) in sales in January, marking the figure’s 16th consecutive monthly decline, according to Japan’s Department Store Association.