Japanese department-store sales continue to drop
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Japanese department store sales plunged 60 percent last month as the Covid-19 crisis saw retailers close or operate under reduced hours across the country.
Sales in the Matsuzakaya and Daimaru department stores were down 73.2 percent year on year, although that was an improvement on the 79.1-per-cent decline a month earlier.
Rival operator Takashimaya says its sales were down by 62.9 percent, while Seibu and Sogo reported a decline of 61.5 percent.
As in neighboring South Korea, duty-free sales have been severely affected by the absence of inbound mainland Chinese tourists. In Takashimaya’s duty-free division, sales fell by 98.7 percent.
As Inside Retail Asia reported yesterday, South Korean duty-free retailers temporarily shuttered metropolitan stores in response to a significant decline in tourist numbers caused by the coronavirus epidemic.
However, department-store sales there have shown signs of recovery as social-distancing restrictions were eased by the country’s government.
Questions & Answers
Q.Which Japanese department store chain experienced the largest percentage drop in sales last month?
Which Japanese department store chain experienced the largest percentage drop in sales last month?
Matsuzakaya and Daimaru stores saw a combined 73.2 percent year-on-year decline in sales. This figure, however, was an improvement on the 79.1 percent drop recorded a month prior.
Q.What specifically caused such a dramatic fall in duty-free sales for Japanese department stores?
What specifically caused such a dramatic fall in duty-free sales for Japanese department stores?
The absence of inbound mainland Chinese tourists, due to the Covid-19 crisis, severely affected duty-free sales. Takashimaya's duty-free division alone saw a 98.7 percent sales decrease.
Q.Have any other countries in the region seen similar impacts on their department store sales from the pandemic?
Have any other countries in the region seen similar impacts on their department store sales from the pandemic?
Yes, South Korea also experienced a significant decline in tourist numbers, leading to temporary closures of metropolitan duty-free stores. However, their department store sales have shown signs of recovery.
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