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Once-Popular Shopping District in Osaka is Seeing Wave of Store Closures

OSAKA - Umeda’s Chayamachi district, located on the east side of central Osaka, is undergoing a noticeable shift as major retailers including Loft and ZARA have closed or relocated this year, even as large-scale developments such as Grand Green Osaka continue to open elsewhere in the area, raising questions about whether the district is transforming from a youth-oriented fashion hub into a center for subculture; to understand what is driving the changes, we spoke with Takanobu Okahara, president of Tsubasa Asset Partners and an expert on Osaka’s real estate trends.

Chayamachi’s development traces back to the early Meiji period, when the area was mostly farmland with teahouses scattered throughout the district, and the presence of three teahouses along the north–south road gave rise to the name “Chayamachi.” Through the late Meiji years, the district evolved into a neighborhood of homes and textile factories. The opening of the Shin-Midosuji road in 1969 accelerated commercial use as residential space declined and retailers began to cluster in the area.

Redevelopment moved into full swing in the Heisei era as Chayamachi emerged as a symbol of youth culture. Umeda Loft opened in 1990, and Okahara says the district “evolved into a magnet for young people as a fashion-forward retail zone.”

Yet Chayamachi is now facing what has become known locally as a wave of closures. Okahara points to large-scale redevelopment around the Umeda and Umeda North (Ume-kita) districts as the underlying cause, noting that “the redevelopment of the Ume-kita area has drawn foot traffic westward.”

Around JR Osaka Station, new commercial complexes such as Lucua Osaka, Grand Front Osaka and Links Umeda have opened one after another since 2011, while Chayamachi has seen little major development since NU Chayamachi opened in 2005. As new facilities concentrated on the Ume-kita side, more visitors and retailers gravitated west.

This April, Umeda Loft closed and relocated to the Hanshin Umeda Main Store, followed by moves to other districts by ZARA and Uniqlo, among others.

In place of the fashion-driven mix that once defined the district, Chayamachi is now seeing the rise of a new identity as a “subculture district.” Over the past year, shops specializing in anime merchandise and capsule toys have increased in number. Okahara says Chayamachi can no longer rely on fashion alone, adding that “subculture appeals strongly to today’s younger consumers, and inbound tourism has brought even more visibility to it.”

Amid these shifts, a new wave of redevelopment is taking shape adjacent to Chayamachi. Hankyu Hanshin Holdings announced that renovation of Osaka-Umeda Station will begin sequentially from January next year to address aging infrastructure dating back to 1973. The renovation will move train stopping positions by roughly 14 meters to create more space and improve accessibility, with Okahara suggesting the project “could become a catalyst for redevelopment around Chayamachi.”

The company’s broader Shibata 1-chome Plan aims to upgrade the value of the greater Umeda Station area, making use of the former New Hankyu Hotel site, rebuilding the Hankyu Terminal Building and carrying out renovations at Hankyu Sanbangai. According to Okahara, the initiative likely includes “an intention to draw foot traffic back toward Chayamachi.”

Attention is now turning to how the former Umeda Loft site will be redeveloped, although no concrete plans have been announced. On Chayamachi’s south side, the B-2 and B-3 zones are scheduled to open in fiscal 2027 as a mixed-use complex combining commercial space, hotels and offices.

Looking ahead, Okahara believes the district’s prospects remain strong, saying Chayamachi is currently “in a redevelopment valley,” but with its proximity to major stations and high overall convenience, “the area’s potential is significant and Chayamachi will eventually regain vibrancy as redevelopment advances.”

Source: ABCTVnews

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