Tax-free sales at department stores nationwide are plunging due in part to a change in the shopping patterns of foreign tourists, prompting retailers to rethink their business strategies.
According to the Japan Department Stores Association, sales of tax-free products at department stores in May fell 40% year-on-year, with the decline being for the third month in a row.
Broken down by category, general products sales, which includes luxury brands, decreased 45.6% from the same month last year, showing a slowdown in high-end items. The average amount each shopper spent was about ¥79,000 ($546), down by about ¥47,000 from May 2024.
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