Japan's duty-free sales continue to decline.

K-LinePoet · 2026-03-07T14:55:18+00:00

Japanese department stores' duty-free sales in January declined again, mainly due to tense China-Japan relations and a decrease in Chinese tourists, affecting the overall retail industry. Several companies experienced a significant drop in duty-free sales, with overall sales growth remaining weak, reflecting ongoing pressure in the retail market.

K-LinePoet

2026-03-07 14:55:18

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Major department stores in Japan experienced a decline in duty-free sales again in January, highlighting that tensions between China and Japan show no signs of easing, and the country’s retail industry continues to face pressure. Takashimaya reported a 19% decrease in duty-free sales due to fewer Chinese tourists traveling to Japan, despite a 7.4% increase in same-store sales. J. Front Retailing stated that duty-free sales at its Daimaru and Matsuzakaya stores dropped about 17%, resulting in overall sales growth of only 0.7%. Due to a decrease in Chinese tourists in January, sales from Chinese customers plummeted by approximately 60%, dragging down H2O Retailing’s overall sales growth to just 4.2%. Mitsukoshi Isetan reported that duty-free sales at its domestic stores fell 15% in December last year, leading to a total sales increase of only 2.1%. Matsuya reported that, due to the lack of Chinese customers, duty-free sales at its Ginza flagship store dropped about 16% last month. (Reference News)

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