Retail sales in Japan rose by 5.2 per cent in March – the strongest growth rate in five months – but the trend will be short lived. 

As the figures were released, reports emerged that department stores – forced to close on April 25 – may have to remain shuttered until the end of this month.

Analysts said March’s rebound was the result of consumer demand increasing after shutdowns and disruptions related to Covid-19 dulled discretionary spending earlier in the year. 

“People felt relaxed, as it becomes spring,” Takeshi Minami, chief economist at Norinchukin Research Institute, told Reuters.

According to data from the Japanese government, department-store sales rose by 19.3 per cent in March, while grocery sales fell by 2.1 per cent as people ventured out from their homes more. 

However on Wednesday, Reuters quoted three unnamed government sources suggesting the government was considering extending the state of emergency in Tokyo and other urban areas beyond May 11. 

Large department stores and cinemas are currently banned from opening, along with restaurants, bars and karaoke parlours serving alcohol. 

A decision on the extension is likely to be made before Friday with its sources predicting extending the measures until the end of the month. 

This would likely increase doubts as to whether the Tokyo Olympics would commence on July 23, as scheduled.