Weak Yen Boosts Japan Department Store Sales Amid Surge in Non-Chinese Tourism

Japan's department store industry is experiencing a surge in sales thanks to the weak yen and increased tourism from non-Chinese visitors. According to a recent survey, 38.8% of Japanese department stores expect their foreign tourist sales to increase this year, with downtown stores leading the way at 50%. This is a stark contrast to last year, when Chinese tourists declined sharply after China's government advised its citizens against traveling to Japan.

The weak yen has made luxury goods more affordable for tourists, resulting in higher spending per person. In June, tax-free sales at Japanese department stores rose by 29.8% from the previous year, with duty-free sales increasing for the fourth consecutive month. Foreign tourists are primarily buying high-priced items such as cosmetics, luxury bags, and watches.

Department stores are responding to this trend by strengthening their services to retain foreign customers. Isetan Mitsukoshi is expanding its overseas customer app, which provides product and store information, with 71% of overseas customers having already downloaded it. The company plans to link passport information with the app account in the second half of the year, enabling tailored communication based on purchase histories.