Japan Retail Sales Growth Above Forecasts

Retail sales in Japan unexpectedly dropped 0.9% year-on-year in December 2025, reversing an upwardly revised 1.1% increase in the previous month and defying market expectations of a 0.7% rise. This marked the first decline in retail turnover since August, reflecting that households had already met their year-end needs in the previous month, supported by rising wages. Sales decreased for clothing and personal goods (-11.6%), fuel (-10.8%), non-store retailers (-5.8%), department stores (-0.5%), and food and beverages (-0.4%). By contrast, retail trade increased for other retail categories (6.1%), automobiles (5.9%), machinery and equipment (5.9%), and cosmetics (0.1%). On a monthly basis, retail sales fell 2.0% in December after an upwardly revised 0.7% gain in November, marking the first monthly decline in four months.

Retail sales in Japan rose 1.0% year-on-year in November 2025, slowing from a 1.7% increase in the previous month but surpassing market expectations of 0.9%. This marked the third consecutive month of growth in retail turnover, supported by resilient household spending on essentials heading into year-end, steady wage gains, and a recovery in inbound tourism. Sales increased for machinery and equipment (7.1%), pharmaceuticals and cosmetics (5.6%), automobiles (3.9%), other retail categories (3.8%), department stores (2.0%), and food and beverages (1.1%). By contrast, retail trade declined for clothing and personal goods (-7.5%), fuel (-5.6%), and non-store retailers (-5.5%). On a monthly basis, retail sales rose 0.6% in November, easing from a 1.6% gain in October, which was the strongest increase since September 2021.

Retail sales in Japan increased 1.7% year-on-year in October 2025, accelerating from a downwardly revised 0.2% rise in the previous month, surpassing market expectations for a 0.8% increase and marking the fastest pace since June. Sales advanced in machinery and equipment (8.0%), pharmaceuticals and cosmetics (5.1%), automobiles (4.8%), other retail categories (3.6%), and department stores (3.1%). By contrast, declines were seen in fuel (-3.3%), non-store retailers (-3.3%), textiles, clothing, and personal goods (-1.7%), and food and beverages (-0.2%). On a monthly basis, retail sales climbed 1.6% in October, following a downwardly revised stall in September and marking the strongest growth in three months.