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Japan-Update

Real estate buoying earnings at Japan department store chains

Rent provides reliable revenue as retail landscape evolves

J. Front Retailing's Ginza Six opened in April.

TOKYO -- Japan's department store operators are developing their real estate businesses to stabilize revenues amid fierce competition from specialty shops and online retailers. 

Takashimaya's real estate operations are set to bring in 32%, or 11.5 billion yen ($101 million), of the company's group operating profit for this fiscal year, with the segment on track for its sixth straight record profit. The company rents out space at the Tamagawa Takashimaya shopping center and other malls through a subsidiary. Condominium sales in Yokohama are also seen making a contribution to the segment's profit. 

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