Article:
TOKYO (Kyodo) -- Japan's department store sales in April fell 72.8 percent on a same-store basis from a year earlier, the largest monthly decline since comparable data became available in 1965, as government measures to combat the coronavirus pandemic forced many stores to reduce operations or temporarily shut, an industry body said Friday.
Interim data in May suggest an even steeper fall is possible in the month with sales in the first 18 days down around 85 percent, the Japan Department Stores Association said, although some recovery is likely in the latter half of the month after the government lifted the state of emergency for 39 of the nation's 47 prefectures on May 14.
Sales of 203 stores run by 73 operators totaled 120.8 billion yen ($1.1 billion) in the seventh consecutive monthly fall, the association said.
Ideas:
Its no surprise that there was decrease in sales for April. If we look at all the possible activities taking place since 1965 there wasn't anything even close that would have hurt sales as much as this. Not even the so called "lost decade", which really wasn't a lost decade was like this.
What might be interesting if and when the Japan Department Stores Association comes out with any information or data related to online sales of department stores.
Most likely there might be a slight increase in online sales, but not that much as consumers most likely are refrained from any consumer spending except for only the most essential items which a consumer could get at a pharmacy, grocery store or conbini.
Yes,there should be some recovery in May but of course it won't be anything near the normal level of consumer spending. Even most likely for the last 12/13 day of the month of May.
Most likely consumer spending, when it returns to some level, will enter a "new normal" level of consumer spending for the rest of the year.
Also we can except more months of below normal consumer spending and eventually reaching what might be again a "new normal" level of consumer spending.
Article:
Duty-free sales dropped 98.5 percent on a same-store basis to about 500 million yen as the number of customers tumbled 99.5 percent for a third straight monthly fall to just 2,400 due to cross-border travel restrictions in and outside Japan to curb the deadly virus infections.
By product, sales of clothing and miscellaneous products such as cosmetics and jewelry fell 82.7 percent and 78.7 percent, respectively.
Those of food items sagged 53.0 percent, a comparatively milder decline than most other items, as many stores kept their grocery floors open.
Ideas:
Of course Duty-free sales would have had a large decrease as there were no international tourists, such as the large number of Chinese tourists that would buy the bulk of the Duty-free products.
Sales, cosmetics, jewelry are items too are not a surprise in falling sales. But usually cosmetics, for a very long time, were kind of "recession" proof as women, mostly, would still buy cosmetics despite any downturn in the economy. But this situation is much different of course.
A 53.0 percent decrease in food items, while not a surprise, is kind of a surprise. If many stores kept their grocery floors open, perhaps consumers were limiting the number of times they went to the grocery store to avoid large crowds.
As case in point is in Yokohama at Yokohama eki, station, with department stores such as Sogo and Mitsukoshi having large grocery floors.
Whenever I would go to Sogo, the entrance and all areas near it were extremely crowded. And the grocery area in the back, but close to the entrance was always crowded and busy. As such customers maybe felt they wanted to avoid large crowds that are common at Sogo.
The same can be said for a small grocery store across from the Sony Plaza store in the basement area of Yokohama eki. Anytime I went there, just to admire all of the fresh food and bento offerings it was very busy.
Another case in point was 2019 Christmas eve, I went to a bread store near the grocery store, and with tradition, the grocery store was selling bento type roasted chickens for Christmas eve.
And not to be out done by the grocery stores, in the walking areas of the station, there were many tables setup selling bento type roasted chicken. And lets not forget KFC which also was selling its chicken too.
Have a nice day and stay safe!
