Nationwide department store sales in 2012 increased by 0.3%, exceeding the previous year for the first time in 16 years.

Jan 20, 2013
According to the Japan Department Stores Association, cumulative annual sales for department stores nationwide in 2012 increased by 0.3% after adjusting for the number of stores (existing store growth rate), marking the first year-on-year increase in 16 years since 1997, when sales fell below the previous year's figure. Sales before adjusting for the number of stores were 6.1453 trillion yen, a slight decrease of 0.1% compared to the previous year.

The reasons for the increase in annual sales on an existing store basis include a significant increase in reaction to the earthquake disaster in March, a change in consumer mindset towards a preference for authenticity and discerning consumption, and large investments such as expansion and renovation of large stores in urban areas.

By region, sales rose 2.1% in Tokyo, 0.7% in Nagoya, 1.3% in Yokohama, and 1.4% in Kobe. Due to the impact of the earthquake, Sendai saw a 7.7% increase, exceeding the previous year on a comparable basis. Other major cities saw declines: Osaka (down 0.8%), Kyoto (down 0.3%), Fukuoka (down 1.8%), Sapporo (down 0.5%), and Hiroshima (down 2.7%). Overall, the 10 cities saw a 0.8% increase. The total for the rest of the 10 cities was down 0.6%. While the year-end gift sales season saw a notable recovery in urban areas, particularly Tokyo, due to the election, regional stores in particular struggled. For December alone, Nagoya, Osaka, and Kobe saw year-on-year increases, reflecting the effects of renovations at large stores, while Tokyo saw a decline.

By product category, men's and women's clothing increased 1.5% and 0.9%, respectively, driving sales, and overall apparel increased 0.6%. Cosmetics increased by 2.5%, art, jewelry and precious metals increased by 3.4%, and personal items as a whole increased by 1.0%, figures that suggest a trend toward authenticity-oriented and discerning consumption.

In addition, sales to foreign visitors to Japan in December increased by 11.3%, and the number of customers increased by 7.7%, marking the second consecutive month of growth following November, indicating a recovery trend. Annual sales based on duty-free procedures for 2012 were 20.2 billion yen (44 stores surveyed), a significant increase of 26.7% over the previous year.
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