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Department store sales down for 26th consecutive month in April

May 18, 2010
By Ken Worsley


According to data released today by the Japan Department Store Association, sales at department stores nationwide fell 3.7% to 484.6 billion yen in April, marking the 26th consecutive month of decline. The survey covered sales at 92 department store operators with 267 shops.

Here is the breakdown of sales by individual categories:

  • Clothing: 36.5% of total sales, down 7.5%
  • Personal Effects: 12.6% of total sales, down 3.6%
  • Miscellaneous Goods: 14.5% of total sales, down 3.5%
  • Household Goods: 5.4% of total sales, down 1.4%
  • Food: 24.6% of total sales, up 0.6%
  • Services: 1.3% of total sales, up 1.7%
  • Other: 2.3% of total sales, up 11.7%
  • Gift Certificates: 4.1% of total sales, up 11.2%

In a separate report, JDSA announced that April sales in the Tokyo area fell 4.9% to 121.9 billion yen.

Filed Under Department Stores, Economic Reports, Retail 

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Comments

3 Responses to “Department store sales down for 26th consecutive month in April”

  1. Philipp Maier on May 20th, 2010 5:22 am

    Mhmmm,

    What would be really helpful is a graph with department store sales and, say, GDP or consumption (or other indicators for consumption). There are several signs that the Japanese economy is on track for a decent recovery, so this measure is a bit puzzling - and more information would be helpful.

    Just a thought…. PM

  2. Ken Worsley on May 20th, 2010 5:33 am

    Philipp, I agree. While department store sales continue to decline, many smaller shops and fast fashion outlets have sprung up to grab the yen they no longer attract.

    Ampontan recently did an excellent translation of a piece on fast fashion in Japan, and you can find it here: http://ampontan.wordpress.com/2010/05/14/fast-fashion-in-japan/

    Luxury goods are just no longer the strongest trend in Japan; all trends die. Ampontan also provides an excellent link on what he calls the “dark side” of fast fashion: http://news.bbc.co.uk/2/hi/uk_news/7899227.stm

  3. Glade Poulsen on June 3rd, 2010 12:48 pm

    Retailing is slowing all over the world. This was predicted many years ago by Madison Avenue. In the US there are more than 3 stations now and it is difficult to advertise to consumers. Tevo’s, recorders and a plethora of choices make it difficult. Direct sales, of which I have been a participant in for 17 years, is an industry of growth. Word of mouth advertising, shortening the channel of distribution between manufacturer and consumer; like Dell Computer, is an upward trend and the internet has aided in this distribution model. I believe, this model of distribution will continue to grow and evolve into an even bigger channel of distribution. (Currently a 112 Billion USD industry see www.wfdsa.org) Those seeking opportunities are drawn to this type of distribution model.

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