Don Quijote drops refund fees for tourists across Japan stores

Discount retailer Don Quijote has scrapped tax refund processing fees for foreign tourists across its Japan stores nationwide effective immediately, according to Nikkei Asia. Nikkei Asia says the move aims to spur spending from visitors as Japan benefits from a weak yen and resurgent travel. It signals intensifying competition among retailers to reduce friction at checkout for tax-free purchases and encourage larger baskets.

The chain had levied a handling fee on tax refunds for nonresidents, which will now be removed, Nikkei Asia reports, and retail peers and department stores are watching the impact ahead of year-end shopping as currency and arrival trends shape promotions. Watch for rival chains to match the policy and for Don Quijote to share early sales metrics from the holiday period. [Developing. This article will be updated.]