— Dec 1st Half Sales Up On Lower Temperatures, Higher Bonuses
— See Separate Table For Details

TOKYO (MNI) – Combined sales at Japanese department stores in
November are forecast to be weaker than in October, possibly marking the
fifth consecutive year-on-year fall, a survey of major store chains by
Market News International showed.

The Japan Department Stores Association will release November data
at 1430 JST (0530 GMT) on Monday, Dec. 19.

In November, combined sales are expected to have marked a
year-op-year drop, with a pace of decline accelerating from -0.5% in
October, as mild weather conditions hurt sales of autumn and winter
clothing.

Three out of the seven department store chains surveyed reported
year-on-year gains in their November sales while four said their sales
fell. This is a deterioration from October, when four groups reported
increases and three reported declines.

Meanwhile, in the first half of December, department store sales
improved, thanks to lower temperatures, which boosted demand for winter
clothing, and higher growth in year-end bonuses, some spokesmen said.

Year-end bonus payments rose 5.22% y/y this year, up sharply from
+1.47% seen a year earlier, according to a survey of 103 major firms
conducted by the Keidanren business lobby.

Four out of six department store chains said year-on-year changes
in sales improved in the first half of December, compared with the whole
of November.

Also good news for department store operators is that the slump in
purchases by overseas customers triggered by the Fukushima nuclear
radiation crisis continues to ease.

Sales to overseas customers at Matsuya fell only about 15% on year
in November, improving from -32% in October, -44% in September and -70%
in August, a company spokesman said.

Looking ahead, a Takashimaya spokesmen said, “We cannot be
optimistic” about sales in coming months as unstable stocks and foreign
exchange markets are expected to push down corporate profits, which in
turn will dampen consumer sentiment.

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

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