Supermarket, apparel sales not looking good in Japan
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Japanese supermarket sales edged down 0.2 per cent in a third consecutive year of declines, according to figures released by an industrial body this week showing last year’s financial performance. The data for last year shows sluggish consumption regardless of the country’s current period of economic growth. Observers have attributed the slump to a low demand for apparel in supermarkets relative to stronger sales in food.
Apparel sales fell 5.3 per cent, the 27th straight year of declines, influenced by the warm winter and increased competition with retailers online. Food, by comparison, saw 0.4 per cent higher sales with an uptick in prices for vegetables and sweltering summer temperatures.
While total sales rose 0.5 per cent to ¥12.99 trillion ($118.71 billion) last year, they still fell short of the hoped-for ¥13 trillion mark for the second year in a row.
“Spending is weak as a deflationary mindset is still deeply rooted among consumers”, said Atsushi Inoue, a senior official of the Japan Chain Store Association.
Questions & Answers
Q.What is the primary reason attributed to the overall decline in Japanese supermarket sales?
What is the primary reason attributed to the overall decline in Japanese supermarket sales?
The slump is mainly attributed to low demand for apparel within supermarkets. This is relative to stronger sales in food, and apparel sales fell significantly due to a warm winter and online competition.
Q.How did food sales perform in Japanese supermarkets last year?
How did food sales perform in Japanese supermarkets last year?
Food sales saw a 0.4 per cent increase. This was partly driven by higher prices for vegetables and strong demand during sweltering summer temperatures, contrasting with declining apparel sales.
Q.What is the total value of supermarket sales in Japan for last year?
What is the total value of supermarket sales in Japan for last year?
Total sales rose to ¥12.99 trillion ($118.71 billion) last year. However, this figure still fell short of the targeted ¥13 trillion mark for the second consecutive year.
Q.What wider economic issue is affecting consumer spending in Japan, according to Atsushi Inoue?
What wider economic issue is affecting consumer spending in Japan, according to Atsushi Inoue?
Atsushi Inoue states that spending is weak because a deflationary mindset remains deeply rooted among consumers. This suggests a broader trend impacting purchasing behaviour across the country.
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