Companies in Fukushima are receiving government aid from the Japanese government as part of the revitalization project for the region, but more and more are fighting for survival.
Commercial complexes that were newly built after the core meltdown at the Fukushima Daiichi nuclear power plant in March 2011 have difficulties in covering their costs.
Companies can hardly survive without the help of the authorities
As a result, business owners often turn to the municipalities for financial help, but that will not improve the situation as many residents of the regions that have been evacuated are not returning.
As a result, many companies are now on the verge of having to give up. This is what happens to the commercial complex, for example Michi no Eki Madeikan in the village of Iitate, which was built for around 1.4 billion yen and also houses a grocery and vegetable stand.
Michi no Eki Madeikan has already received 33 million from the local authorities, but even with this financial injection, only an annual deficit of several million yen has been reported so far. In 2018, financial aid in the amount of 35 million yen was requested again. After the business strategy was revised, the deficit was reduced to 300,000 yen in fiscal 2019. Meanwhile, one expects to be able to report a small profit for the 2020 financial year.
There are now 12 commercial complexes in 10 cities that were designated as “no-go areas” after the nuclear disaster. After the status was lifted, a lot of money was invested to make the places attractive again for the former residents. However, almost all companies feel the same way as Michi no Eki Madeikan.
Big losses year after year
For example Sakura Mall Tomiokawhich can only be operated with the support of the city and prefecture as it loses approximately 22 million yen every year. A city official is now warning that the city will have to increase rents after the prefecture’s subsidy program ends in fiscal year 2021.
Not all shops in the complex are struggling with financial problems, but many operators fear that customers will hand over to the competition outside the region due to the rent increase and the resultant price increase.
Residents prefer to buy elsewhere
This is currently experiencing Kokonara Shopping Street, which opened in Naraha in 2018. Figures show that the employees in the 10 stores only served 570,000 customers in the financial year. Many residents prefer to go to a mall in the neighboring city.
Many workers for the state rebuilding project visit the store in the afternoon or evening to buy take-away or daily necessities. But when the rebuilding project is over, these workers will also disappear.
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