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flag Chinese tourist spending in Japan dropped 60% in January 2026 due to geopolitical tensions, hurting department store sales.

flag Duty-free sales at Japan’s major department stores declined in January 2026, driven by a sustained drop in Chinese tourists due to ongoing geopolitical tensions following Japanese Prime Minister Sanae Takaichi’s remarks on Taiwan. flag Retailers including Takashimaya, J Front Retailing, Isetan Mitsukoshi, and Matsuya reported sharp declines in sales from Chinese visitors, with spending down about 60%. flag Despite overall foreign arrivals reaching a record 40 million in 2025, Chinese arrivals fell 45% to 330,000 in December. flag The loss has slowed sales growth across the sector, prompting efforts to diversify visitor sources and boost spending from other regions.

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