15 July 2005, 10:45  Tokyo June dept store sales fall 1.1 pct yr-on-yr, 40th decline in 43 months

Department store sales in Tokyo fell 1.1 pct in June from a year earlier, the 40th decline in 43 months, the Japan Department Stores Association said. Tokyo area department store sales totaled 154.7 bln yen last month, it said. In the first half to June, department store sales in Tokyo dropped 2.3 pct from the previous year to 911.19 bln yen. The report, covering 27 department stores operated by 13 companies, is released about a week earlier than nationwide sales for both department stores and supermarkets, and is thus viewed as a leading indicator of nationwide consumer spending trends. In May, retail sales rose 2.7 pct year-on-year, the fifth increase in seven months. Adjusted for changes in the number of stores, sales at large retail stores fell 3.1 pct year-on-year, the 15th straight month of decline. A sustained rise in retail sales is being counted on to keep the Japanese economy on a recovery track despite a shrinking trade surplus, the traditional driver of economic growth. Consumer spending underpins 55 pct of the economy, and lately has been increasing due to a big improvement in labor market conditions.

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