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Japan’s department stores see record 9.4% fall in sales for December

January 19, 2009
By Ken Worsley


Recent news reports on retail sales had been bleak, and thus a decline in department store sales for December seemed inevitable. Earlier this month, the Nikkei reported that December sales at Isetan had fallen by about 10%, while Takashimaya saw a 10.2% fall and Matsuzakaya declared a whopping 13.7% fall in sales for December.

Thus, it’s not too surprising that nationwide department store sales fell by an all-time record of 9.4% in December, according to figures released today by the Japan Department Store Association. Aside from months when sales were held down over reactions to consumption tax increases, this is the largest drop seen since department store sales data began being tracked in 1965.

December sales came to 794.7 billion yen, for the tenth consecutive month of decline. Here’s a breakdown of sales by individual categories:

  • Clothing: 28.8% of total sales, down 13.8%
  • Personal Effects: 12.1% of total sales, down 14.3%
  • Miscellaneous Goods: 13.4% of total sales, down 12.3%
  • Household Goods: 4.6% of total sales, down 14.8%
  • Food: 36.3% of total sales, down 2.6%
  • Services: 0.8% of total sales, down 5.0%
  • Other: 1.6% of total sales, up 6.1%
  • Gift Certificates: 5.8% of total sales, down 11.8%

My speculation that food sales would surpass clothing as the single largest revenue category has happened sooner than expected, and this is bad news for department stores.

The survey covered 280 departments stores operated by 91 companies, with both figures being the same as a month ago. 101,466 fewer people worked at Japan’s department stores last month when compared to December 2007, for a decline of 0.7%.

Sales at department stores in the Tokyo area fell 10.4% in December, also showing the tenth consecutive month of decline.

Filed Under Department Stores, Economic Reports, Retail 

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One Response to “Japan’s department stores see record 9.4% fall in sales for December”

  1. JC Report | Inside Global Fashion Trends - daily – The Waning Relevance Of Department Stores on January 11th, 2010 11:31 am

    […] slump seems to be spreading around the world: three of Japan’s largest department stores are also in danger. Isetan and Takashimaya saw their sales fall by 10% in December, while […]

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