Duty-free sales at Japan＊s top department stores rose in March, signaling a tentative rebound after months of weakness tied to a drop in Chinese tourist spending.

Takashimaya reported a 6.9% year-on-year increase in duty-free sales, with same-store sales climbing 9.1%. J Front Retailing said tax-free sales at its Daimaru Matsuzakaya store rose 10.3%, lifting its overall department store revenue by 4.6%.

The gains mark a shift for Japan＊s department stores, which had endured consecutive months of declining duty-free sales amid lingering tensions with China. Japan＊s tourism numbers returned to growth in February, with visitors from South Korea and the United States, among others, making up for the slump in Chinese arrivals 〞 a result of Beijing＊s warning against travel following remarks by Prime Minister Sanae Takaichi on Taiwan.

※For inbound customers, while the impact of China＊s call to refrain from travel to Japan was evident, growth from other countries lifted results above the previous year,§ Takashimaya said in a statement.

Isetan Mitsukoshi Holdings saw duty-free sales rise 5.4%, in line with a 5.5% increase in overall sales.

However, Matsuya＊s Ginza main store and Asakusa stores reported about a 4% decline in March as they continued to feel the effects of China＊s travel advisory.

Chinese tourists have been central to Japan＊s post-pandemic recovery, accounting for about a fifth of ?9.6 trillion ($60.5 billion) in tourism revenue in 2025. The deterioration in ties has exposed Japan＊s reliance on China as vulnerability, intensifying its efforts to diversify its visitor base.

Japan has set a target of 60 million visitors and ?15 trillion in tourism revenue by 2030, and its inbound travel has remained resilient.