Japan July Department Store Sales Slip After June Summer Sales

     TOKYO (MNI) - Combined same-store department store sales fell 1.4% on year

to Y546.9 billion in July, giving up all of the 1.4% gain in June and posting

the first drop in two months, as the end of the summer sales season took its

toll, the Japan Department Stores Association said Monday.

     Most stores began their summer sales in late June, earlier than usual. 

     The data indicate a slower pace of year-on-year increase in overall retail

sales data due out Wednesday, Aug. 30, although the lingering effects of the

introduction of new models have supported automobile sales.

     The three-month moving average of department store sales for the May-July

period fell 0.1% on year after rising 0.7% in April-June, which was the first

rise in 18 quarters. In April, department store sales rose 0.7% on year, the

first rise in 14 months.

     In July, higher stock prices supported sales of high-end goods while sales

in the southwestern region of Kyushu were hit by heavy rain and flooding that

caused casualties and long-lasting damage.

     Sales to visitors from overseas continued to post strong gains, up 54.9% on

year in July to a record Y22.7 billion after rising 41.4% in June, on strong

demand for jewelry, watches and cosmetics.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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