According to industry data released Thursday, tax-free sales at Japanese department stores in May increased 16.7% year-on-year to about 49.66 billion yen ($300 million). This marks the third consecutive month of growth, driven by the weak yen and higher prices for luxury items.
The increase reflects strong spending by foreign visitors, who are taking advantage of favorable exchange rates to purchase high-end products such as jewelry, watches, and handbags. Analysts say demand from tourists, particularly from China and other Asian countries, continues to be a key driver of tax-free sales growth.
The Japanese yen has depreciated significantly against the U.S. dollar and other currencies in recent months, making Japanese goods cheaper for foreign tourists. This has helped boost overall retail sales, especially the tax-free segment, which is an important indicator of tourism and consumer activity.
