Retail, Wholesale & Distribution

October 2005

Retail sales up for seventh month
Retail sales edged up 0.1 percent to 10.18 trillion yen in September for the seventh straight monthly rise, mainly due to surging fuel prices, the Ministry of Economy, Trade and Industry said Thursday. The seven-month year-on-year rise is the longest since an eight-month stretch between May and December 1994. METI maintained its basic assessment of the retail sector, saying modest recovery is continuing. (The Japan Times, October 28, 2005)

Tokyo Sept Department Store Sales Up 0.5% On Year
Tokyo department store sales in September rose 0.5% on year to Y137.3 billion, adjusted for changes in the number of stores, the Japan Department Stores Association said Friday. Tokyo department store data are considered a directional indicator for nationwide sales figures, which the association will release later this month. It was the first rise in two months, following a 6.1% fall in sales in August. The association compiled its data based on a survey of 13 companies and 27 stores. Web site: http://www.depart.or.jp (Dow Jones, October 14, 2005)

Mitsukoshi To Spend 70 billion To Open Dept Stores in Osaka, Tokyo
Mitsukoshi Ltd. is set to conclude a contract with West Japan Railway Co. by month-end allowing it to open a department store in a complex the railway firm plans to build at JR Osaka Station in 2011, sources close to the deal said Saturday. Mitsukoshi is also preparing to construct a building near its department store in Tokyo's Ginza district in 2010, to more than double its sales floor there to some 50,000 sq. meters. The steps are intended to prop up the major department store operator's sagging sales by making intensive investments in prime locations. The combined investment is expected to total some 70 billion yen, with spending in Osaka likely to hit close to 50 billion yen and outlays in Tokyo projected to reach 15-20 billion yen.The new Osaka store will have a total floor space of 50,000 sq. meters, and its opening follows Mitsukoshi's closure of two money-losing outlets in Osaka in May 2005. Meanwhile, the company intends to sell two distribution centers in Tokyo's Koto Ward, which have a combined floor space of 28,000 sq. meters, to help curb its deteriorating finances. Other department store operators also plan to make investments in urban areas, where they expect sales to grow in the years to come. Hankyu Department Stores Inc. (8242) has started expanding its flagship outlet in Osaka's Umeda district by 40% to 84,000 sq. meters. Takashimaya Co. and Daimaru Inc. have also decided to enlarge their department stores. These moves are expected to bring the total department store sales floor in Osaka to 540,000 sq. meters in 2011, up 40% from today. (The Nihon Keizai Shimbun, October 9, 2005)