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JAPAN. Global convenience store franchise 7-Eleven has introduced tax free shopping for tourists at two of its stores in Japan – becoming the first convenience operator to take advantage of greater consumption tax exemptions introduced in October.
Overseas visitors at 7-Eleven’s stores in the ward of Taitō in Tokyo and Ukyō-ku in Kyoto will be able to buy food & beverage, alcohol, pharmaceuticals and “daily necessities” including batteries without paying the 8% consumption tax.
Tourist shoppers will use special baskets and dedicated till points where they must present their passports. Some purchases can also be shipped to the consumer’s home country.
The retailer said it was considering expanding the tax free service to other stores. Local franchisee Seven & i Holdings said the service had already been introduced at its Ito-Yokado general merchandise concepts and department store subsidiary Sogo & Seibu.
7-Eleven’s move represents an important step in the spread of Japan’s new tax free shopping regulations, described as a “˜structural change’ for the country’s travel retail market.
The measures extend exemptions on categories including cosmetics, confectionery, food, liquor, tobacco and medicines, while the lower limit for exempt purchases has been decreased from JPY10,000 (US$91.50) to JPY5,000 (US$45.75).
Although the law applies only to the consumption tax at present, major department stores and discount stores in Japan are gearing up to introduce full-fledged duty free services.
As reported, Isetan Mitsukoshi, JATCo and Narita Airport (NAA) will launch a 3,300sq m duty free store in the Isetan Ginza store in Tokyo from Autumn 2015.
The impact of the extended exemption scheme on Japan’s airport retailers has yet to be seen. Airport shops retain a price advantage on imported and excise goods, although the price differential on Japanese products across many categories has been eroded.
