Krispy Kreme expansion and the redevelopment of Ginza September 2, 2007Posted by fukumimi in Food and Drink, Japan.
The second Tokyo location for Krispy Kreme has been announced, it will be located in the new ITOCiA development on the east side of Yurakucho (on the other side of Sotobori-dori from Printemps department store)
ITOCiA is a 21story (+4basement levels) 75,900m2 development, the cornerstone tenant will be Marui department store taking up a full 8 floors.
ITOCiA is hot on the heels of the new Marronnier Gate development which had its official opening yesterday (with Tokyu Hands the headline tenant here), which is located next to Printemps and across Namiki-dori from Ginza Velviakan, another development which opened earlier this year. Printemps, the traditional mecca for Marunouchi and Ginza OL fashion, is not being left behind, and is in renovation mode with a re-launch set for later this month.
The flurry of new developments in the north west corner of Ginza is likely to have an impact on the area’s center of gravity.
Whilst Printemps, Marronnier Gate and Velviakan appear to cater to the traditional Ginza shopper, the arrival of Marui in (or near) Ginza is likely to split opinion. Whilst Ginza has already seen low priced players such as Uniqlo, Zara, Gap, Shoes retailer ABC Mart, etc establish a presence (and Scandinavian powerhouse H&M expected to make an entrance next year), none have been on the scale of Marui’s attempt. Marui’s target market is the mainstream young female market, which traditionally has not been catered to in Ginza. Some traditionalists worry that Ginza will lose some of its individual flavour.
Marui’s foray into the Ginza/Yurakucho area is due to the development of the East Tokyo Bayside area. Marui has always had a strategy of targetting terminus (and major interchange) stations and has a network of stores in a ring around central Tokyo. Shinjuku, Shibuya, and Ikebukuro take care of the west side, and Kitasenjyu, Kinshicho, and Oimachi took care of the East side and North-South axis, complemented by stores in Saitama, Chiba and Kanagawa.
However, the redevelopment of the East Tokyo bayside area (east end of the Yurakucho line) and the JR Keiyo line catchment area (highlighted by the resurgence in popularity of the Shin-Urayasu area – an area which was popular back in the bubble era but left half-developed when the bubble burst), has given Marui an incentive to build a store to capture these customers.
That the JR Keiyo line’s Tokyo terminus is actually located at the far south end of Tokyo station and is within easy walking distance from the Yurakucho/North end of Ginza, and with Ginza 1-chome and Yurakucho stations on the Yurakucho lines are also close by are consistent with Marui’s typical store location strategy.
The Yurakucho store also allows Marui to close down its store in Oimachi, which is declining in status as a teminus station (and was too close to the redeveloping Kawasaki and had overlapping catchment areas)
By moving the south east Tokyo location up from Oimachi to Yurakucho, it also increases the ability to capture customers who live on the central western bayside area (e.g. Hamamatsucho/Tamachi/Shinagawa down to the Tamagawa river) which is also being redeveloped with a significant residential development component.
The redevelopment of the east side of Tokyo will accelerate with large projects like the New Tokyo Tower project and the redevelopment of the traditional financial district around Kabutocho in the pipeline. The area from Nihombashi (Nihombashi Mitsui Tower next to Mitsukoshi) south to Ginza already is seeing extensive development (the Yaesu side of Tokyo station being a prime example), and as development spreads east, the center of gravity of the Tokyo metropolis may be starting to swing back towards its traditional center.