New Kansai International Airport Co. plans to open duty-free shops outside the airport to cater to the needs of a growing number of foreign tourists, sources said Monday.

Jointly run by major Japanese department store operator J. Front Retailing Co. and the Lotte group of South Korea, the new shops in the city of Osaka will enable foreign tourists to buy cosmetics, clothing and other goods tax-free just by showing their passports.

The purchased items will be picked up at the airport prior to departure from Japan.

The operator of Kansai International Airport is considering opening new duty-free shops in Osaka at two Daimaru department stores operated by J. Front unit Daimaru Matsuzakaya Department Stores Co., the sources said.

Lotte opened its first duty-free shop in Japan at Kansai International Airport last September.

Currently, Japan has only one duty-free shop located outside of an airport. It is in Naha, Okinawa Prefecture.

Narita International Airport Corp. and Tokyo-based department store operator Isetan Mitsukoshi Holdings Ltd. have agreed to open a duty-free shop at the Mitsukoshi store in Tokyo's Ginza shopping district this fall.