Duty-free sales at Â鶹´«Ã½ 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 Â鶹´«Ã½ department stores, which had endured consecutive months of declining duty-free sales amid lingering tensions with China. Â鶹´«Ã½ 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 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 Â鶹´«Ã½ 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 Â鶹´«Ã½ 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.