TOKYO (MNI) – Department store sales in Japan plunged 14.7% from a
year earlier to Y462.4 billion in March, posting the first y/y drop in
two months, hit by of the March 11 earthquake disaster and cold
temperatures, the Japan Department Stores Association said Tuesday.

In addition to the damage from the disaster in northern Japan,
stores in the eastern region were forced to cut their operating hours by
power outages after the quake and tsunami wrecked Fukushima Daiichi
nuclear power plant that supplies electricity to Tokyo and other cities.

For a few weeks after the massive earthquake, consumers across the
nation reduced spending out of respect for the victims, hurting sales of
clothing and jewelry. Unusually cold temperatures in March also dampened
spring clothing sales.

But the industry group also said department store sales in the
first 20 days of April improved to be unchanged from year-earlier
levels.

In February, department store sales rose 0.7% from a year earlier
to Y433.2 billion on higher demand for clothing and food, posting the
first y/y rise in four months after falling 1.1% in January,

The association compiles data from 89 companies running 259
department stores that have been open for at least a year prior to the
survey being conducted. The data are adjusted to facilitate comparisons
on a same-store basis.

In Tokyo, combined sales at 28 department stores totaled Y103.1
billion, down 21.5% on year, posting the first drop in three months,
after rising 1.7% in February and 1.4% in January.

tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4838 **

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