Big drop in tourist tax-free spending signals sluggish days ahead for Japan

Japanese department stores suffer a 41% plunge in June

20250728 Isetan Shinjuku department store

Tokyo's time-honored Isetan Shinjuku department store. The emporium's operator has introduced a smartphone app for overseas customers, providing discount coupons as well as information about its outlets in English, Chinese and Korean. (Photo by Makoto Okada)

YURIKA YONEDA

TOKYO -- Japanese department store sales have been slowing in recent months amid signs that one well-heeled segment of shoppers is losing its appetite for lavish spending, partly due to the knock-on effects of U.S. President Donald Trump's tariff blitz.

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