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Japan’s department store sales down 7.6% in June

July 18, 2008
By Ken Worsley


Despite strong gains in department store sales in Shinjuku immediately following the opening of the new Fukutoshin subway line on June 14, department store sales fell 7.4% in Tokyo and 7.6% nationwide in June. According to the Japan Department Stores Association, 588 billion yen in sales were rung up across the country in June, at 280 department stores owned by 93 companies.

June was the fourth consecutive month with a decline in sales, and five out of the first six months of this year have seen a decline so far. Once again, the JDSA is citing bad weather as a reason for the decline in sales. Here’s a breakdown for June sales figures by category:

  • Clothing: 34.0% of total sales, down 14.0%
  • Personal Effects: 12.6% of total sales, down 9.3%
  • Miscellaneous Goods: 14.9% of total sales, down 4.4%
  • Household Goods: 5.0% of total sales, down 9.2%
  • Food: 28.4% of total sales, up 0.3%
  • Services: 1.0% of total sales, down 1.5%
  • Other: 1.5% of total sales, down 7.1%
  • Gift Certificates: 4.6% of total sales, down 9.1%

Food was the only category showing a rise in sales, and food sales as a percentage of overall sales increased from 22.7% in May to 28.4% in June. It seems hard to imagine, but could we be on a path to seeing food sales overtake clothing sales as a revenue source for Japan’s department stores?

A week after the opening of the Fukutoshin Line in Tokyo, Takashimaya reported a 30% increase in sales over that weekend when compared to the previous year. Isetan in Shinjuku reported a 10% increase in sales. At the same time, Ikebukuro’s Seibu department store saw a 5% rise while Tobu was flat. Shibuya’s Tokyu also reported sales being unchanged.

The Nikkei, however, has published a follow-up story that suggests things may not be so rosy after that strong start:

…[A] rise in foot traffic has not translated into more sales. Sales have crept up 2% across the board at the Isetan and Takashimaya Shinjuku stores as well as at Tokyu Department Store Co.’s outlet near Shibuya Station. And Yodobashi Camera’s location on the east side of Shinjuku Station has rung up a 2-3% increase.

At all of these, the tiny rise is blamed on smaller purchases per customer.

The shops are bringing in more people, but that is not translating into more sales. Is the weather really to blame for this?

Filed Under Department Stores, Economic Reports, Retail 

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Comments

One Response to “Japan’s department store sales down 7.6% in June”

  1. mojar on July 21st, 2008 9:06 pm

    I seem to hear about this bad weather every time sales reports are released in Japan. No matter what it is, sales are down because of bad weather. It’s been going on for some time. Does anyone track sales of umbrellas?

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