Duty-free sales at Japan’s top department stores rose in March, signaling a tentative rebound after months of weakness tied to a drop in Chinese tourist spending. Takashimaya Co. reported a 6.9% year-on-year increase in duty-free sales, with same-store sales climbing 9.1%. J Front Retailing Co. said tax-free sales at its Daimaru Matsuzakaya store rose 10.3%, lifting its overall department store re...
Duty-free sales at Japan’s top department stores rose in March, signaling a tentative rebound after months of weakness tied to a drop in Chinese tourist spending. Takashimaya Co. reported a 6.9% year-on-year increase in duty-free sales, with same-store sales climbing 9.1%. J Front Retailing Co. said tax-free sales at its Daimaru Matsuzakaya store rose 10.3%, lifting its overall department store revenue by 4.6%. The gains mark a shift for Japan’s department stores, which endured consecutive months of declining duty-free sales amid lingering tensions with China. Japan’s tourism numbers returned to growth in February, with visitors from South Korea and the US, among others, making up for the slump in Chinese arrivals — a result of Beijing’s warning against travel following Japanese Prime Minister Sanae Takaichi ’s Taiwan remarks. Read: Japan Asks China to Temper Taiwan Response After Travel Move “For inbound customers, while the impact of China’s call to refrain from travel to Japan was evident, growth from other countries lifted results above the previous year,” Takashimaya said in a statement. Isetan Mitsukoshi Holdings saw duty-free sales rise 5.4%, in line with a 5.5% increase in overall sales. However, Matsuya Co. ’s Ginza main store and Asakusa stores reported an about 4% decline in March, as it continued to feel the effects of China’s travel advisory. Chinese tourists have been central to Japan’s post-Covid recovery, accounting for about a fifth of ¥9.6 trillion ($60.5 billion) in tourism revenue in 2025. The deterioration in ties have exposed Japan’s reliance on China as vulnerability, intensifying its efforts to diversify its visitor base. Japan has set a target of 60 million visitors and ¥15 trillion in tourism revenue by 2030, and its inbound travel has remained resilient. Read More: Japan Tourism Rebounds as China Slump Made Up by Other Regions