Younger Crowds Drive Retail Boom in San Francisco's Japantown

Japantown businesses adapt to changing consumer preferences, with new stores and attractions attracting a younger demographic.

Jan. 27, 2026 at 2:07pm by Ben Kaplan

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San Francisco's Japantown is experiencing an economic resurgence, driven by an influx of younger customers who are drawn to new retail offerings like Japanese-style claw machine arcades, anime stores, and other trendy businesses. While some longstanding shops like Sakura Sakura have had to adjust their offerings, Japantown as a whole is thriving, with only one vacancy currently in the Japan Center Mall. The Japantown Community Benefit District credits the area's growth to the 18-30 year old demographic, who are flocking to the neighborhood in large numbers.

Why it matters

Japantown's ability to attract a younger consumer base is crucial for the long-term viability of the neighborhood's businesses and cultural identity. As parts of San Francisco struggle with vacant storefronts, Japantown has managed to buck that trend, demonstrating the power of adapting to changing consumer preferences and maintaining a vibrant, community-oriented retail environment.

The details

New businesses like LEMONADE by Lemonica, a Japanese beverage store, are slated to open in Japan Center, while existing shops like Sakura Sakura have had to pivot to remain relevant. Kiddleton arcades, anime stores, and other youth-oriented retailers have filled vacancies, creating a more dynamic retail mix. The Japantown Community Benefit District says the area's continued growth is largely attributable to the influx of 18-30 year old customers, who are drawn to the neighborhood's focus on toys, anime, and other trending products.

  • Construction on the $34 million renovation of Japantown Peace Plaza began in 2024, with the plaza expected to reopen in 2026.
  • LEMONADE by Lemonica, a Japanese beverage store, is slated to open inside Japan Center sometime in 2026.

The players

Sakura Sakura

A retail store inside Japan Center Mall that has had to pivot to remain relevant as the neighborhood's retail mix has shifted towards more youth-oriented offerings.

Stephan Jordan

The owner of Sakura Sakura, a store that has been in business for more than two decades.

Grace Horikiri

The executive director of the Japantown Community Benefit District, which has attributed the area's continued growth to the influx of a younger demographic.

John Reinhart

An Oakland resident who has noticed the increased focus on toys, anime-related products, and other youth-oriented offerings in Japantown.

Japantown Community Benefit District (JCBD)

The organization that has credited Japantown's growth to the 18-30 year old demographic and is looking at ways to support businesses impacted by the upcoming Japantown Peace Plaza renovation.

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What they’re saying

“We've had to adjust.”

— Stephan Jordan, Owner, Sakura Sakura (cbsnews.com)

“I'm not quite sure what you even call them. There's a new business over there and I walk in and I have no idea what's going on.”

— Stephan Jordan, Owner, Sakura Sakura (cbsnews.com)

“It is that 18- to 30-year-old demographic when you come to Japantown. They are the ones out here in full force.”

— Grace Horikiri, Executive Director, Japantown Community Benefit District (cbsnews.com)

“There's a lot of focus now on, I feel like now, on these toys, anime-related stuff. So I think it's a lot more active now than what it used to be.”

— John Reinhart (cbsnews.com)

“As you can see, I never thought 27 years ago that I would have little plush dolls.”

— Stephan Jordan, Owner, Sakura Sakura (cbsnews.com)

What’s next

The Japantown Community Benefit District says it is looking at ways to help some of the businesses on Osaka Way that will be impacted by the upcoming $34 million renovation of Japantown Peace Plaza, which is expected to be completed in 2026.

The takeaway

Japantown's ability to adapt to changing consumer preferences and attract a younger demographic has been crucial to its economic resurgence, demonstrating the power of community-driven, mission-oriented retail in an era of high commercial vacancy rates and shifting shopping habits.