Retail sales in Japan increased 1.7% yoy in March 2026, recovering from a downwardly revised 0.1% drop in the previous month and surpassing market expectations for a 0.8% gain. The latest result highlighted the government's efforts, including a stimulus package aimed at boosting consumption and easing price pressures. Sales increased in automobiles (9.0%), other retail goods (5.2%), pharmaceuticals and cosmetics (2.8%), department stores (1.4%), machinery and equipment (0.7%), and food and beverages (0.4%). In contrast, sales declined in fuel (-4.1%), clothing and personal goods (-3.3%), and non-store retail (-2.5%). On a monthly basis, retail trade grew 1.3%, rebounding from a 2.0% fall in February.