1. Two major Japanese department store chains, J. Front Retailing and Takashimaya, reported a significant decrease in operating profit for the six months ending August, primarily due to lower sales of duty-free items.
2. The decline in sales is attributed to a stronger yen and higher prices of luxury brand bags and jewelry, lessening the appeal to foreign travelers.
3. Both companies expect inbound tourism to continue growing over the medium to long term, but are monitoring average customer spending due to currency fluctuations. The Japan Department Stores Association reports a six-month decline in sales for all outlets nationwide, also linked to a drop in demand for duty-free items.