Don Quijote drops tourist refund fees in Japan to boost spending

Japan’s Don Quijote has dropped refund fees for foreign tourists at its stores across Japan today, Nikkei Asia reports. The change removes a key friction in tax-free shopping and aims to channel surging inbound travel spend into the discount giant amid sustained visitor demand. It also sharpens competition with rival retailers courting visitors drawn by the weak yen and tax-free perks.

Don Quijote, owned by Pan Pacific International Holdings, previously charged a processing fee when handling tax refunds on duty-free purchases across its nationwide network, a policy that deterred some shoppers. The company will now absorb those costs at checkout to lift basket sizes and repeat visits, according to Nikkei Asia. Watch for early data on foot traffic, average spend per tourist, and any pricing or policy moves from competitors. [Developing. This article will be updated.]