Consumption has not shown a sharp downturn so far since the country's consumption tax was raised to 8 percent from 5 percent on Tuesday.
Department stores have expe-rienced a tumble in sales, mainly of high-end items, after a surge in last-minute demand the previous month. Their sales were down by 10 percent to 20 percent from a year earlier in the first six days since the tax increase.However, sales have been growing for some food items that are difficult to stockpile and at some restaurant chains, showing daily consumption remains solid despite the tax increase.
Sales at four major department store operators grew by 20 percent to 30 percent in March, reflecting the high popularity of jewelry and imported brand-name products, before a major drop early this month.
Bic Camera Inc. said that the consumer electronics retailer saw its sales tumble by about 40 percent in 1997, when the consumption tax was raised to 5 percent from 3 percent. "This time, however, the sales drop has fallen short of expectations," an official said.
Source: Japan News
Sales at four major department store operators grew by 20 percent to 30 percent in March, reflecting the high popularity of jewelry and imported brand-name products, before a major drop early this month.
Bic Camera Inc. said that the consumer electronics retailer saw its sales tumble by about 40 percent in 1997, when the consumption tax was raised to 5 percent from 3 percent. "This time, however, the sales drop has fallen short of expectations," an official said.
Source: Japan News
