Chinese Customers at Japan Department Stores Down 40%

Department stores in Japan saw the number of Chinese customers and their duty-free purchases plunge more than 40% in December from a year earlier, amid heightened diplomatic tensions between Tokyo and Beijing, Kyodo News reported.

The downturn comes as relations between Japan and China have deteriorated. (Photo: Kinetsu Railway)

The decline in Chinese tourists also weighed on overall tax-free sales, which fell 17.1% year on year to ¥51.9 billion (S$420 million) in December and dropped 12.7% to ¥566.7 billion for all of 2025, according to the Japan Department Stores Association.

“A tough situation will continue for a while,” an association official said, pointing to bleak prospects for a rebound in Chinese tourist arrivals during the Chinese New Year holidays in February.

The decline in Chinese tourists also weighed on overall tax-free sales, which fell 17.1% year on year to ¥51.9 billion (S$420 million) in December and dropped 12.7% to ¥566.7 billion for all of 2025, according to the Japan Department Stores Association.

“A tough situation will continue for a while,” an association official said, pointing to bleak prospects for a rebound in Chinese tourist arrivals during the Chinese New Year holidays in February.

Government data show that foreign visitors to Japan reached a record estimated 42.7 million in 2025, buoyed by a weaker yen and increased flight capacity.

However, the number of Chinese tourists slumped 45% in December from a year earlier to about 330,000.

The downturn comes as relations between Japan and China have deteriorated since Japanese Prime Minister Sanae Takaichi made remarks in Parliament in early November suggesting Japan could act in the event of an attack on Taiwan, prompting China to urge its citizens to avoid travel to Japan.