Duty-free sales at department stores across Japan totaled 31.3 billion yen ($214 million) in July, surpassing the pre-pandemic levels of 2019 for the same month thanks to the return of individual travelers from mainland China, data by an industry body showed Friday.
It marked the first time duty-free sales for a single month exceeded such levels since March 2020, when the number of foreign visitors to Japan plummeted, the Japan Department Stores Association said.
The return of Chinese travelers following the easing of restrictions related to COVID-19, coupled with a weak yen, has led to strong purchases of luxury brands and other high-end items, according to the association.
Around 320,000 foreign visitors made purchases in the country, an elevenfold increase compared to the same month the previous year. These visitors came from countries such as South Korea and Singapore, in addition to mainland China and Taiwan.
The average amount they spent per purchase was 97,000 yen, the association said.
More visitors and increased spending are anticipated, with Beijing's approval early this month of the resumption of Japan-bound group tours for its citizens.
"There is no mistake that it will be beneficial if the group tours fully return," an association official said.
Overall sales at 181 stores operated by 70 companies increased 8.6 percent from a year earlier to 475.8 billion yen, marking the 17th straight month of growth, bolstered by strong demand for summer clothes as temperatures soared, the association said.
But compared to July 2019 figures, total sales were down by 1.5 percent, it said, as regional areas saw slower economic recovery compared to cities where voracious demand for luxury items was driven by affluent clientele.
In Japan's 10 major cities, including Tokyo and Osaka, department store sales grew 11.0 percent from a year earlier, marking the 22nd consecutive month of growth.
Sales in other cities also saw an uptick, reporting a 1.6 percent increase for the first rise in three months.
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