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Japan's new shopping centres shrink as neighbourhood formats replace regional malls

Eighteen shopping centres opened in Japan in the first half of 2026, more than a year earlier but each one smaller, as developers favour compact, dining-led neighbourhood formats over big regional malls.

Editorial illustration of a compact Japanese neighbourhood shopping arcade with small dining and service storefronts, potted greenery and a covered walkway, with silhouette figures walking and seated nearby, warm cream and ochre tones, no text or logos.
Illustration by floortok.com

Eighteen new shopping centres opened across Japan in the first half of 2026, eight more than in the same period a year earlier, according to a press notice from the Japan Council of Shopping Centers (JCSC) dated 5 August. Despite the higher count, the newest wave of malls is markedly smaller on average than the batch that opened the previous year, the trade body said, describing the shift as a move away from large regional destinations toward compact, neighbourhood-format centres.