Major Japanese department store operators reported on Monday a drop in duty-free sales during the Lunar New Year holiday amid China's ban on all outbound group travel to stop the spread of a deadly coronavirus.

Three out of the nation's four major operators, including Takashimaya Co., saw double-digit declines in duty-free sales from late January, with the decrease continuing into February. Chinese tourists make the majority of purchases, so the downturn is expected to persist long-term.

Takashimaya reported a fall in duty-free sales of 14.7 percent in the week through Jan. 30 from the previous year's weeklong Lunar New Year holiday through Feb. 10.

Sogo & Seibu Co. said its duty-free purchases during the holiday period were down 15 percent compared with last year, while Isetan Mitsukoshi Holdings Ltd. said its sales fell about 10 percent.

Sales of J. Front Retailing Co., operator of Daimaru and Matsuzakaya department stores, decreased 5 percent.

The largest drop in overall sales at the stores was reported in the latter half of this year's Lunar New Year following a ban on tour groups to Japan from China on Jan. 27.

The fall in visitor numbers led to the overall drop in duty-free sales, as Chinese tourists comprise approximately 80 percent of the purchases at Takashimaya, and also make up the majority at other department stores.

China banned outbound group travel to curb the spread of the coronavirus, which has killed at least 360 people and sickened more than 17,000 in the country.


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