TOKYO (MNI) – Department store sales rose 0.6% from a year earlier
to Y512.1 billion in October, posting the first rise in 32 months, as
lower temperatures boosted sales of winter clothing, offsetting fears
that the strong yen and weak share prices will hurt spending, the Japan
Department Stores Association said on Wednesday.
Sales promotions celebrating the victories of baseball teams in
Japan’s two professional leagues also supported overall sales, the
association said.
On the other side, spending on duty-free items by Chinese and other
tourists from overseas fell 7.0% on year, posting the first fall since
-0.6% in October 2009, following recent sharp gains of +18.7% in
September, +16.5% in August, +51.9% in July and +99.1% in June.
The association said the drop in spending by overseas customers was
mainly caused by the lingering strong yen. Some department stores in
the big cities such as Tokyo, Nagoya and Sapporo reported sales of
designer goods were also declining.
It is unknown whether the latest Sino-Japanese territorial disputes
had any impact on the drop in October sales by overseas visitors, it
said.
Sales to overseas customers account for less than 1% of overall
department store sales, although major store chains are seeking ways to
attract them.
The association compiles data from 91 companies running 261
department stores that have been open for at least a year prior to the
survey being conducted. The data are adjusted to facilitate comparisons
on a same-store basis.
Including sales at stores that were opened within the past year,
department store revenue fell 0.3% year-on-year in October after
falling 6.3 % in the previous month.
In Tokyo, combined sales at 27 department stores rose 2.7% from a
year before to Y128.9 billion in October, also posting the first gain in
32 months, following -3.8% in the previous month.
tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4838 **
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