FINAL negotiations were taking place this week for the opening of a third branch of The Japanese Shop, which has been so successful in York and Harrogate.

Jez Willard, managing director, and his Japanese wife, Hiromi, have been discussing terms with the owners of premises in Chester in the hope of opening another Japanese gift shop there before Christmas.

It is part of Jez's dream of owning up to 30 branches throughout the UK within the next ten years.

On their return from Japan, Jez and Hiromi set up their unusual shops, first in Harrogate, then in Coppergate Walk - double the size - and soon everyone was recognising their success.

Last year, The Japanese Shop was a finalist in the Retailer Of The Year category in the Evening Press Business of the Year.

Now, armed with the confidence if having been named as Shop Of The Year in the York Tourism Bureau Awards, the venture is trying again in the Evening Press Retailer Of The Year category, as well as pitching for the Small Business Of The Year title.

It has been a good year, with the number of employees rising to 13. Should the Chester talks be successful, there will be a total of 20 on the payroll.

Meanwhile, the organisation has not only achieved its target of £500,000 turnover, but the rapid the growth of its online business at www.thejapaneseshop.co.uk and the presence of a third shop could boost sales this year to the £1 million mark.

Even without the Chester enterprise, Jez and Hiromi have been monitoring success, and the figures look good.

In a year, the number of customers in Harrogate increased by 23 per cent; customer figures in York increased by a whopping 44 per cent, sales were up by 26 per cent; the mail order and website sales combined are up 273 per cent and profits were up by 500 per cent.

Jez said: "We continue to be excited about our prospects. Our objective of becoming the market leader of Japanese gifts in the UK is realistic.

"We're approaching a period in which significant investment is required for a new shop, mail order brochure and to upgrade our point-of-sale systems.

"We are about to change from a toddler into a little boy."

Updated: 11:22 Wednesday, August 11, 2004