Retail sales in Japan fell 0.2% yoy in February 2026, reversing a 1.8% growth in the previous month and missing market expectations for a 0.8% gain. The latest result highlighted pressures from rising costs despite recent fiscal support from Tokyo. Turnover declined in fuel (-14.1%), non-store sales (-4.2%), and clothing and personal goods (-3.1%). In contrast, gains were recorded in other retail goods (4.0%), automobiles (3.8%), pharmaceuticals and cosmetics (3.7%), department stores (1.9%), machinery and equipment (1.6%), and food and beverages (0.8%). On a monthly basis, retail trade declined 2.0%, reversing a downwardly revised 3.0% increase in January.