CBRE (Japan headquarters: Marunouchi, Chiyoda-ku, Tokyo) is pleased to announce that it has collaborated with the Shinsaibashi-suji Shopping Street Promotion Association (hereinafter Promotion Association) to complete a study of Shinsaibashi-suji Shopping Street’s pedestrian traffic volume. The findings have been published in a report titled, “Shinsaibashi-suji Shopping Street Pedestrian Traffic Volume Analysis Report.” The data shows the bustling nature of Osaka Minami, and we hope that it will raise further interest in the area which is already garnering attention from domestic/international businesses and tourists on the back of the upcoming Expo 2025 Osaka, Kansai.
 
Report overview
Data for this study was compiled on the Shinsaibashi-suji Shopping Street, whose Promotion Association is headquartered at 2-2-22 Shinsaibashi-suji, Chuo-ku, Osaka. Shinsaibashi-suji Shopping Street, a commercial avenue with approximately 150 stores, stretches for about 580 meters from Unagidani-dori in the north to Soemoncho-dori in the south. The report contains two main data sets: 1. pedestrian traffic volume compiled between January 1, 2011 and June 30, 2023, provided by the Promotion Association; and 2. quarterly high street vacancy rate compiled by CBRE (details at the end of this release).

Pedestrian traffic volume 

Traffic volume is measured by analyzing footage recorded by four cameras installed along the shopping street. The number of people passing each recording point over a 24-hour period is added together to obtain total traffic volume.
 
Report highlights

1. Pedestrian traffic volume for H1 2023 has recovered to reach 79.4% of 2019’s figures, and represents a 57.3% increase over H1 2022

Pedestrian traffic volume on the Shinsaibashi-suji Shopping Street showed a steady increase from 2011 on the back of an increase in inbound foreign tourist numbers. From 2015 onward, pedestrian traffic volume remained largely unchanged from an annual peak of approximately 110 million people (Figure 1).

The advent of the COVID-19 pandemic, however, resulted in a dramatic drop in foot traffic in the area from 2020, with annual pedestrian traffic volume in 2021 reaching just 46.4% of 2019’s figure. The release of restrictions on consumer movement and the relaxation of border controls from 2022, though, have resulted in a dramatic surge in foot traffic in the area, with total pedestrian traffic volume for H1 2023 (January to June) reaching approximately 43 million people, representing 79.4% of the equivalent figure for 2019. This is also a 57.3% increase over H1 2022, underscoring just how remarkable the recovery has been over the past 12 months.  

2. Recovery in pedestrian traffic volume leads to a dramatic reduction in the vacancy rate

When analyzing the relationship between high street vacancy rate and pedestrian traffic volume, the reduction in foot traffic seen from 2020 as a result of the spread of COVID-19 coincides exactly with a spike in the Shinsaibashi high street vacancy rate, with that vacancy rate reaching a peak of 23.3%.

Since pedestrian traffic volume began to show a strong rebound in Q4 2022, the vacancy rate has dropped significantly, falling as low as 5.5% in the most recent survey which was conducted in Q2 2023.

*The vacancy rate data for Shinsaibashi-suji also covers some stores that lie outside the Shinsaibashi-suji Shopping Street.

*Due to the unique conditions created by the spread of COVID-19, no high street vacancy rate tabulations or reports were made in Q1 2020.

Yasuo Hirata, Chairman of the Promotion Association, who oversaw the project, commented, “We are delighted to be able to release the ‘Shinsaibashi-suji Shopping Street Pedestrian Traffic Volume Analysis Report’ in conjunction with CBRE. The results of the study make it clear that foot traffic on the shopping street has been steadily increasing since 2020. It also proves that the vacancy rate for street-level stores has improved in conjunction with the increase in pedestrian numbers, leading to an optimistic outlook for the Shinsaibashi-suji Shopping Street. People from around the world come to the vibrant Shinsaibashi-suji Shopping Street to enjoy the shopping and dining experiences. Our aim has been to create a Shinsaibashi that allows all our guests to enjoy what Kansai truly has to offer. The shopping district and department stores have worked together to provide information and improve the environment for both domestic and international customers, creating a unique attraction that allows people to enjoy walking around the city with peace of mind, regardless of weather conditions, day or night, and time of year. While the COVID-19 pandemic resulted in a temporary lull, the shopping street has now regained its former bustle of activity. We hope that the pedestrian traffic data showcases the commercial benefits of the Shinsaibashi-suji Shopping Street, and the wider Osaka Minami and Dotonbori areas, to a greater audience.”

Nobuyoshi Nakajima (Director, Advisory & Transaction Services | Retail, CBRE) stated, “Prior to the pandemic, the Shinsaibashi area was thriving like never before, led particularly by an increase in international tourists. Street-level stores saw limited vacancy, with drugstores and duty-free operators anticipating the next availability. However, COVID-19 and its impact on tourist numbers and domestic consumer activity led to a sharp spike in the vacancy rate. With the recent recovery in pedestrian traffic, drugstores and recycling shops have been notably quick to reopen. Recently, more tenants representing a wide range of sectors such as athletic brands and international apparel brands are looking for storefront spaces. We believe that this quantified foot traffic and retail vacancy rate will not only serve as an additional resource for tenants considering opening a store in Shinsaibashi, but also, attract more tenants due to its compelling findings. We expect that the continued accumulation of traffic data will be used as an indicator for the revitalization of Osaka Minami, including the outlook for the Shinsaibashi market. In conducting this study with the Promotion Association, we hope to have supported efforts to increase Shinsaibashi's visibility and attractiveness.”

Click here to view and dowload the report.