Waiting for Japanese department store to wake up
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Japanese department-store sales dropped 2.4 per cent in November from a year earlier on a same-store basis, down for the ninth consecutive month.
Overall sales at 234 outlets run by 81 companies stood at ¥525.7 billion (US$4.6 billion), the Japan Department Stores Association says, noting the size of the decrease had shrunk for the third straight month.
Association officials say department stores are hopeful for a turnaround in December through the year-end shopping spree.
Sales dropped for almost all categories in November, with exceptions including cosmetics. Sales fell 2.4 per cent for clothing and 0.6 per cent for food. Same-store declines were smaller than October’s 6.5 per cent and 2.1 per cent, respectively.
Sales of tax-free goods to overseas visitors dropped 7.1 per cent to about ¥14.5 billion – the first contraction of less than 10 per cent in seven months.
Meanwhile, the Japan Franchise Association has reported an 0.5 per cent increase in convenience store sales in November, reaching ¥773.4 billion on a same-store basis, up for the second straight month.
It says the increase reflects brisk sales of prepared meals such as fried foods as well as the winter dish oden.
Questions & Answers
Q.What was the main trend for Japanese department store sales in November?
What was the main trend for Japanese department store sales in November?
Department store sales dropped 2.4 per cent in November on a same-store basis, marking the ninth consecutive monthly decline. However, the size of this decrease was smaller than in previous months, suggesting a potential slowdown in the negative trend.
Q.Which product categories performed differently from the general sales trend in November?
Which product categories performed differently from the general sales trend in November?
Most categories saw sales fall, but cosmetics were an exception, not experiencing a decline. Clothing sales dropped 2.4 per cent, and food sales decreased by 0.6 per cent, both smaller declines than in October.
Q.How did tax-free sales to international visitors perform last month?
How did tax-free sales to international visitors perform last month?
Sales of tax-free goods to overseas visitors decreased by 7.1 per cent, totalling around ¥14.5 billion. This was the first time in seven months that the contraction was less than 10 per cent.
Q.How do convenience store sales compare to department store performance in November?
How do convenience store sales compare to department store performance in November?
In contrast to department stores, convenience store sales increased by 0.5 per cent in November, reaching ¥773.4 billion on a same-store basis. This marks their second consecutive month of growth, driven by prepared meals and winter dishes.
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