Japan department store sales rise for 3rd month in March

Sales at Japan’s department stores grew in March, mainly due to brisk demand for watches, jewelry and other luxury items. Tax-free purchases by foreign visitors also rebounded.

The Japan Department Stores Association says March sales topped 507 billion yen, or about 3.2 billion dollars. That’s up 3.2 percent year-on-year on a same store basis, marking the third consecutive month of growth.

Tax-free sales to foreign visitors rose 5.2 percent to about 300 million dollars, reversing four straight months of decline.
A drop in the number of visitors from China was offset by an increase from Taiwan, South Korea and Southeast Asia. The weaker yen also helped bolster per-person spending by about 20 percent year-on-year.

Still, the Middle East conflict and disruptions to energy and petrochemical supplies are raising business uncertainties.

The association says supplies to department stores could be hit further down the road as some clothes, food trays and other items are made from petrochemical-derived materials.