The tax-free sales in Japan continue to decline.

The duty-free sales of major department stores in Japan in January once again declined, highlighting the continued pressure on the retail industry as tensions between China and Japan show no signs of easing. According to reports from Takashimaya, the duty-free sales decreased by 19% due to the decrease in Chinese tourists traveling to Japan, despite a 7.4% increase in same-store sales. J. Front Retail Company also reported a 17% decline in duty-free sales at its Daimaru and Matsuzakaya stores, leading to an overall sales growth of only 0.7%. Due to the decrease in Chinese tourists in January, sales from Chinese customers plummeted by about 60%, dragging down the overall sales growth of H2O Retail Company to only 4.2%. A report from Mitsukoshi Isetan Co. stated that the duty-free sales at its domestic stores in December last year decreased by 15%, resulting in a total sales growth of only 2.1%. Matsuya company reported a 16% decrease in duty-free sales at its Ginza flagship store last month due to the lack of Chinese customers.