HAERA in Nagoya's Sakae district off to a strong start; J. FRONT RETAILING President Ono confident the model can be replicated after Ginza Six and Shibuya Parco

At an earnings briefing held on the 13th, J. FRONT RETAILING President Keiichi Ono discussed the performance of HAERA, a new commercial facility that opened in June in Nagoya's Sakae district. In the just under 3 months from its opening through the end of August, gross merchandise value reached approximately ¥12 billion and visitor numbers approximately 2.25 million. The company described this as a strong start toward its first-year target of ¥30 billion.

HAERA is home to iconic luxury maisons including Chanel, Hermès, Louis Vuitton and Cartier. President Ono said that many of the customers visiting these stores were customers of Matsuzakaya Nagoya, particularly those served through its private-client sales business. Visitor numbers in the Sakae area rose 17% year on year from June through August after the opening, while group gross merchandise value increased 15%, indicating HAERA's ability to attract visitors.

At the same time, sales at Matsuzakaya Nagoya fell 4.4% from June through August, and the growth in gross merchandise value at Nagoya PARCO was limited to 2.4%, leading the company to conclude that synergies with surrounding facilities have yet to fully materialize. President Ono said he was confident that HAERA's model could be replicated, while prefacing his remarks by saying that it was necessary to “observe the situation a little longer.”

As a potential future project, President Ono cited the Tenjin Big Bang redevelopment project in Fukuoka's Tenjin district and outlined a plan to complete the facility by around the fiscal year ending February 2031. He described plans to expand tenant gross merchandise value through the redevelopment around Tenjin and develop a mixed-use facility including a live music venue, offices and a hotel, emphasizing the intention to roll out the HAERA model in Fukuoka.