Japan retail sales underwhelm

Japan’s retail sales rose a marginal 0.2 per cent in December – the sixth consecutive monthly year-on-year increase.

Analysts had expected a stronger one per cent increase, despite challenging economic circumstances largely due to the nation’s declining and ageing population.

Department stores were the weakest link, with data from the Japan Department Stores Association showing a same-store sales fall of 1.7 per cent year-on-year – the ninth consecutive fall. The fall would have been greater if not for a cushioning effect from increased shopping by Chinese tourists.

However, contributing to December’s figure was one less Sunday in the month, compared with December 2013, and the association noted that severe severe snowstorms hit northern regions during the month impacting on store footfalls.

Food and beverage sales in December rose 1.4 per cent, compared with November’s 2.7 per cent. Apparel sales rose 3.1 per cent, down on November’s 4.2 per cent.

December’s total retail sales of 13.52 trillion Yen marked the highest monthly total since March last year, when shoppers splurged in advance of an April sales tax rise.

The preliminary data from Japan’s Ministry of Economy, Trade and Industry showed full year figures were more encouraging: an overall increase of 1.7 per cent, compared with a one per cent rise in 2013.

 

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