Tourists rein in spending at Japan's department stores

Tax-free purchases dragged down by slow luxury sales, despite record visitors

A tax refund counter in department store in Tokyo in 2024. After a surge in spending on luxury goods last year, spending by foreign tourists at department stores has fallen back. (Photo by Manami Yamada)

YURIKA YONEDA

June 4, 2025 13:50 JST

TOKYO -- Tax-free sales at Japan's department stores have fallen in recent months, suggesting that high-end consumption by foreign visitors to Japan has peaked.

Despite rising numbers of tourists visiting Japan, they are not splashing the cash as freely as last year, when demand surged for luxury items such as handbags, watches and jewelry.