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Department stores, convenience stores see sales slide further in July

Japan’s department stores and convenience stores have little to feel positive about after July sales results rolled in. According to data released by the Japan Department Store Association, sales at department stores nationwide fell 11.7% in July, marking the seventeenth consecutive month of decline. The survey covered sales at 87 department store operators with 272 shops.

Here is the breakdown of sales by individual categories: Read more

Japan department store sales down 11.3% in April

According to data released yesterday by the Japan Department Store Association, sales at department stores nationwide fell 11.3% in April, marking the fourteenth consecutive month of decline. The survey covered sales at 97 department store operators with 274 shops - 3 fewer shops than existed the previous month.

Here is the breakdown of sales by individual categories: Read more

Japan department store sales down 9.1% in January

On the back of employment and income growth concerns, Japan’s department stores took a big hit during the recent New Year’s shopping season. According to data released today by the Japan Department Store Association, sales at department stores nationwide fell 9.1% in January, marking the eleventh consecutive month of decline. The survey covered sales at 90 department store operators, with 279 shops. Both the number of companies and the number of stores was one lower than a month ago.

Here is the breakdown of sales by individual categories:

• Clothing: 44.0% of total sales, down 11.9%
• Personal Effects: 13.0% of total sales, down 12.5%
• Miscellaneous Goods: 11.9% of total sales, down 13.2%
• Household Goods: 4.5% of total sales, down 10.2%
• Food: 21.4% of total sales, up 0.7%
• Services: 0.9% of total sales, up 0.5%
• Other: 1.6% of total sales, up 11.7%
• Gift Certificates: 2.2% of total sales, down 13.4%

The figures also show that sales of artwork, jewelry and precious metals fell 19.1% to 21.74 billion yen, showing a decline for the 23rd straight month. Clothing sales have now fallen for 19 straight months.

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

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: Read more

Japan department store sales slide 6.4% in November

According to a report released by late last week by the Japan Department Store Association, sales at Japan’s 280 department stores fell 6.4% in November, to about 649.13 billion yen. Nationwide department store sales have now fallen for nine consecutive months, and there was one less shop in operation than last month.

Here is the breakdown of sales by individual categories:

* Clothing: 36.9% of total sales, down 9.1%
* Personal Effects: 11.2% of total sales, down 9.6%
* Miscellaneous Goods: 13.4% of total sales, down 9.5%
* Household Goods: 4.7% of total sales, down 14.5%
* Food: 28.7% of total sales, up 0.6%
* Services: 1.0% of total sales, down 0.6%
* Other: 1.6% of total sales, up 4.4%
* Gift Certificates: 4.1% of total sales, down 9.7%

Yet again, the only increase in a major category was seen in food sales. Sales of clothing, jewelry and artwork continue to slide as consumer sentiment remains at all-time lows.

In Tokyo itself, sales at the major 28 department stores dropped 7.2% from last year for the ninth consecutive month of decreased sales.

Japan department store sales down 6.8% in October

The Japan Department Store Association has redesigned their website. It still looks like a cheap template, and still has no information in English, but it looks about a million times better than what they had before.

According to data released yesterday, sales at the nation’s 281 department stores fell 6.8% in October, to about 584.56 billion yen. The 281 stores surveyed is two higher than a month ago, and sales have now been down for eight consecutive months on a year-on-year comparison basis.

Here is a breakdown of sales by individual categories:

• Clothing: 40.0% of total sales, down 9.6%
• Personal Effects: 12.7% of total sales, down 9.7%
• Miscellaneous Goods: 13.8% of total sales, down 8.5%
• Household Goods: 4.9% of total sales, down 15.1%
• Food: 23.2% of total sales, up 1.6%
• Services: 1.0% of total sales, down 4.2%
• Other: 1.7% of total sales, up 17.2%
• Gift Certificates: 3.0% of total sales, down 2.2%

Once again, the only increase in a major category was seen in food sales. Clothing sales were particularly battered in October, and the JDSA blames continued warm weather having put a damper on sales of autumn and winter clothes. Sales of artwork, jewelry and precious metals dropped 13.5%, as big spenders seem to be holding back in the midst of the financial crisis.

In Tokyo itself, department store sales dropped 8.4% from last year for the eighth consecutive month of decreased sales.

With two fewer weekend shopping days in September, Japan’s department store sales fall 4.7%

According to data released today by the Japan Department Stores Association, sales at the nation’s 279 department stores fell 4.7% in September, to about 524 billion yen. The 279 stores surveyed is one lower than a month ago, and sales have now been down for seven consecutive months on a year-on-year comparison basis.

One mitigating factor that has been ignored in media reports seen thus far is that September 2008 had 10 weekend days and holidays, while there were 12 weekend days and holidays in September 2007.

• Clothing: 37.1% of total sales, down 4.8%
• Personal Effects: 13.4% of total sales, down 8.8%
• Miscellaneous Goods: 15.3% of total sales, down 5.5%
• Household Goods: 5.0% of total sales, down 12.4%
• Food: 23.2% of total sales, up 0.2%
• Services: 1.1% of total sales, down 11.2%
• Other: 1.8% of total sales, up 7.2%
• Gift Certificates: 2.7% of total sales, down 10.0%

Of the major categories, only food sales saw an increase in September, and that was by just 0.2%. In August, all categories showed a decline as overall sales fell 3.1%.

In September, shoes and handbags saw an 8.8% decrease in sales, and it has been speculated that the luxury market has been taking a hit. Sales of shoes and handbags at department stores have declined for 13 straight months. Connected with that, sales of art and jewelry fell 6.4%, showing a decline for the 19th consecutive month.

Japan department store sales down 3.1% in August

According to data released yesterday by the Japan Department Stores Association, sales at the nation’s 280 department stores fell 3.1% in August, showing a decline for the sixth consecutive month.

Once again, the JDSA is citing bad weather as a contributor to the decline in sales, and there was quite a stretch of rain and thunderstorms at the end of August. Here’s a breakdown for August sales figures by category:

• Clothing: 31.6% of total sales, down 4.3%
• Personal Effects: 12.9% of total sales, down 3.6%
• Miscellaneous Goods: 15.7% of total sales, down 1.6%
• Household Goods: 5.3% of total sales, down 8.9%
• Food: 28.0% of total sales, down 0.3%
• Services: 1.2% of total sales, down 3.4%
• Other: 1.6% of total sales, down 12.5%
• Gift Certificates: 3.3% of total sales, down 12.2%

Notably, food sales fell for the second month in a row after having had several strong months of increase.

Japan’s department stores out of ideas, intend to target young customers

Japan’s nationwide department store sales have declined for eleven years in a row. In June, they fell 7.6% year-on-year, and in May they slid 2.7%. February is the only month so far in 2008 to have seen a rise in department store sales, and that was by less than one percent. It seems to safe to say that 2008 is not going to be the year when department store sales turn around.

Yet, food sales have been rising month after month. In June, food sales made up 28.4% of all sales at departments stores, comprising the second largest category after clothing, which represented 34.0% of all sales in June. Sales of clothing fell 14.0% against June of 2007.

With clothing sales being pounded over recent months, department store operators in Tokyo have been pouring massive investments into their stores in order to upgrade facilities. Some of this - particularly in Tokyo’s Ikebukuro, Shinjuku and Shibuya areas - has been motivated by the opening a new subway line. Yet, the approaches taken have been inconsistent. Some department stores have declared that capital investments were being made to cater to senior citizens, others have announced upgraded areas for women’s clothing.

One might think simply, “They don’t know what to do.” Today’s Nikkei seemed to confirm that suspicion with the headline Department Stores Plan Renovations To Lure The Young.

This seems as though a move from beyond desperation. The Nikkei puts it simply:

Department store operators tend to cater to middle-aged and older consumers. Faced with sluggish sales of relatively expensive items, however, these retailers will now offer more products that younger consumers can afford.

Ouch.

Shibuya’s Tokyu Department store is spending 180 million yen for a renovation that it believes will lead to a 10% increase in sales. Generally, department stores who have announced this strategy appear to be targeting women in their 20s. Shinjuku’s Odakyu department store is spending 150 million yen - a fraction of the 8.5 billion yen it intends to spend overall by the end of fiscal 2009 - in order to create a new section of products designed to appeal to women in their 20s.

We would love to see the reports leading to the conclusion that such a move could result in a 10% increase in sales. With the way that declining department store sales are blamed on bad weather by the Japan Department Stores Association month after month, it would almost seem to make more sense to invest the money in a weather control machine at this point.

Or they could invest in new brands to open as small, niche-based shops. Nah.

Japan’s department store sales down 7.6% in June

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: Read more

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