The retail sales in Japan increased in September 2007 due to increased customer spending, increase in disposable incomes, less prices of food products, and low unemployment level.
As per the data published by the Japanese Ministry of Economy of Trade and Industry on October 29, 2007, the retail sales in Japan increased 0.5% in the month of September 2007 showing the second successive monthly increase. The Newsrating published this news.
The figure revealed was more than anticipated as it beat the predicted decline of 0.7% marking an increase for the second consecutive month after August 2007’s profit of 0.5%. It represented the retail outlets’ total sales of goods and services.
The rise in the retail sales in Japan surprised many people in the country because wages dropped during January-July 2007, and declined 10% in the last decade. Higher prices of staple food like bread and instant noodles, end of the tax breaks, and the high gas prices have battered the disposable incomes and dampened the spirits of the Japanese people in June 2007.
But the prolonged summer heat increased cold drinks’ demand, and the longer weekends encouraged the people in the country to take road trips in their cars fuelling the boost in Japanese retail market in September 2007. As the festive season is approaching, the people in the country have already begun shopping, thus further propelling the retail sales.
After seeing the growth in the Japan’s retail sales, the banks in the country also reduced the interest rates increasing the customers’ spending, which accounts for half of the country’s economy. Another factor that pushed up the retail sales is Japan’s growing economy. This resulted the retail sales to grow in September 2007.
Other reasons behind the rise in retail sales in Japan are the dropping prices of edible products, growing spending by the customers, rising employment level, and the growing use of online shopping by the tech-savvy people of Japan.
A Senior Research Analyst at RNCOS said, “The retail sales in Japan showed downfall in the initial months of 2007. But the September 2007’s growth in retail industry encouraged the retailers. Somehow, the growth seems temporary, and for this reason, the retailers should act fast. They should adopt some important strategies to lure the customers to increase their spending, particularly as the festive season is coming”.
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