High temperatures and typhoons impact department store sales in October, first decrease in three months

Nov 20, 2013
The Japan Department Stores Association released an overview of nationwide department store sales for October. Total sales were 490.7 billion yen, down 0.6% year-on-year after adjusting for the number of stores. This was the first decrease in three months. The main factor was unseasonable weather, with high temperatures continuing through mid-month and three typhoons (Typhoon No. 24, Typhoon No. 26, and Typhoon No. 27) approaching and landing, leading to a decline in seasonal demand and fewer customers.

By product category, sales continued to be strong, with art, jewelry, and precious metals up 19.7%, miscellaneous goods up 6.0%, and personal items up 1.6%, but sales of the mainstay clothing category were weak, down 4.2%. As temperatures dropped in the latter half of the month, sales of winter items began to pick up, but this was not enough to make up for the decline in the first half of the month. Among the five major categories, miscellaneous goods saw their 12th consecutive month of growth, personal items saw their third consecutive month of growth, and household goods saw their first increase in two months. Conversely, clothing and food sales fell for the first time in three months.

By region, the overall growth was supported by 10 cities (up 0.9% year-on-year), centered on Tokyo (up 1.2% year-on-year), Nagoya (up 2.0% year-on-year), and Osaka (up 5.7% year-on-year), where store renovations and expansions continued to have an impact. However, other regions (down 3.5% year-on-year) saw a significant decline, which was not enough to offset the increases in the 10 cities. Sales in the 10 cities rose for the third consecutive month, while sales in regions other than the 10 cities fell for the fourth consecutive month.

In addition to the strong performance of Southeast Asia, sales and visitor numbers from China, which showed signs of recovery following the National Day holiday, boosted sales and visitor numbers. In October, both cities saw growth double and a half compared to the previous year (sales up 150.9% year-on-year, visitor numbers up 142.3% year-on-year).
薄井テルオ
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