Japan retail sales rebound
In this article (5)
Reported sales from Japanese department stores suggest a significant improvement in spending in April.
Japan retail sales, based on department stores data, lept 13.7 per cent on a same store basis compared with the same month in 2014.
The Japan Department Stores Association said a major part of the reason for the increase is that Japanese consumers restrained their spending last year following the increase of the national sales tax to eight per cent.
Official figures for Japan retail sales in March showed a plunge of nearly 10 per cent, year-on-year. But when that data was released last month, analysts cautioned that in March 2014, sales were artificially high as Japanese brought forward spending to avoid a sales tax increase that took effect on April 1.
That decrease was the worst March fall since 1998.
This year, however, tourism is proving a boon to at least some of Japan’s retailers. Foreign tourists are spending more: their purcashes more than trebled for the third month in a row, the most popular items being cosmetics and luxury watches.
Questions & Answers
Q.How much did Japanese retail sales increase in April?
How much did Japanese retail sales increase in April?
Sales from Japanese department stores increased by 13.7 per cent on a same-store basis in April compared to the same month in 2014. This rebound suggests a significant improvement in consumer spending.
Q.What is thought to be the main reason for the increase in April's sales figures?
What is thought to be the main reason for the increase in April's sales figures?
The Japan Department Stores Association believes a major factor is that consumers limited their spending last year after the national sales tax rose to eight per cent. This suggests a recovery from that post-tax hike slowdown.
Q.How did foreign tourists impact retail sales in April?
How did foreign tourists impact retail sales in April?
Tourism has significantly boosted some retailers, with foreign tourists' purchases more than trebling for the third consecutive month. Cosmetics and luxury watches were among their most popular items, contributing to the overall sales improvement.
Q.Why were March's retail sales figures so low compared to the previous year?
Why were March's retail sales figures so low compared to the previous year?
March 2014 sales were unusually high as consumers bought goods early to avoid a sales tax increase effective from April 1st. This made March 2015's nearly 10 per cent year-on-year drop seem worse.
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