Japan retail sales underwhelm
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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.
Questions & Answers
Q.What was the main reason for the disappointing retail sales figure in December?
What was the main reason for the disappointing retail sales figure in December?
Analysts expected a stronger increase, but challenging economic circumstances, partly due to the declining and ageing population, contributed to the marginal rise. Department stores were particularly weak.
Q.Which retail sector performed the worst during December?
Which retail sector performed the worst during December?
Department stores were the weakest link, experiencing a 1.7 per cent year-on-year fall in same-store sales. This was their ninth consecutive monthly decline.
Q.Were there any specific factors mentioned that negatively impacted December's retail sales?
Were there any specific factors mentioned that negatively impacted December's retail sales?
Yes, December had one less Sunday compared to the previous year, and severe snowstorms in northern regions affected store footfalls. These factors contributed to the lower sales figures.
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