Around 90 percent of temporary markets set up in three prefectures devastated by the 2011 earthquake and tsunami still occupy prefabricated buildings due to poor sales almost five years later.
Around 90 percent of temporary markets set up in three prefectures devastated by the 2011 earthquake and tsunami still occupy prefabricated buildings due to poor sales almost five years later.
A survey by the Organization for Small & Medium Enterprises and Regional Innovation showed that sales are sluggish at the markets as an exodus of residents from the affected communities continues, and fewer visitors contributing to rebuilding efforts are shopping at them.
The survey covered markets with at least three shops, which totaled 68 in Iwate, Miyagi and Fukushima prefectures. The findings revealed that retailers still operate out of 62 markets there.
The remaining six sites, which are situated in Iwate and Miyagi prefectures, closed because owners set up shops in new locations on their own, or had folded their businesses.
The temporary markets were built to help the affected retailers resume operations under a 6.9 billion yen ($61 million) project by the organization, a government-affiliated entity.
Their construction began in the summer of 2011 after the Great East Japan Earthquake, tsunami and the Fukushima nuclear disaster struck northeastern Japan on March 11 that year.
After they were built, the prefab structures were handed over to local governments, which let proprietors occupy outlet spaces for free for five years at the request of the organization.
Today, a combined 669 shops operate at the 62 sites.
When the temporary markets opened, sales were stable, catering to a steady stream of volunteers and workers involved in rebuilding efforts.
But they have experienced lackluster sales over the past few years as the number of such visitors has declined and population drain from the stricken municipalities, most of them in rural areas, continues.
Most shop operators are holding off from reopening their businesses in new locations due to a lack of funds.
Leaving the makeshift markets to set up their own shops elsewhere would mean that they would need to pay the rents on their own.
The central government initially set the ending date for the subsidies at five years after the prefab structures were erected.
But with most retailers still struggling, it will extend its small business owner program until the end of fiscal 2018 so that it can continue to fund work to move those businesses to new sites.
The prefabs have a maximum intended lifespan of 27 years, according to the Organization for Small & Medium Enterprises and Regional Innovation.
After five years have passed since the installation of the markets, local governments, which own the makeshift buildings, can charge rent to shop operators.
The organization said some local governments may proceed with requiring rent from this autumn.