Japan¡¯s duty-free sales surged in May as tourists flocked to the country to take advantage of a persistently weak yen, helping major department stores offset a sharp decline in visitors from China.
Takashimaya said duty-free sales jumped 20% last month, with total domestic same-store sales increasing 12% year-on-year. H2O Retailing said duty-free sales in May increased 20% even as purchases from Chinese visitors fell about 40%.
Japanese department stores are rebounding from a shaky start to the year as lingering political tensions kept many Chinese tourists away. While the total number of visitors to Japan have wavered as the Middle East conflict hurts travel demand, tourists from places like Taiwan, South Korea and Southeast Asia have been increasing this year and the weak yen is encouraging them to spend.
Isetan Mitsukoshi Holdings shares rose as much as 6.8% Tuesday, after it reported an 8.6% increase in domestic department store sales in May, including strong demand for premium products such as jewelry and watches. Matsuya saw total sales at its Ginza flagship, including the Asakusa store, climb 18%, with favorable foreign exchange effects supporting its duty-free sales.
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