Japan Retail Sales Rise More than Expected

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.

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.

Retail sales in Japan rose 1.8% yoy in January 2026, rebounding from a 0.9% decline in the previous month and beating market forecasts for a 0.4% fall. It marked the fastest growth since last June, boosted by recent fiscal stimulus measures from Tokyo, including targeted consumption vouchers and tax incentives designed to encourage household spending. Sales expanded for machinery and equipment (12.4%), automobiles (9.6%), other retail goods (3.0%), department stores (2.8%), food and beverages (1.8%), and pharmaceuticals and cosmetics (1.7%). In contrast, turnover declined for fuel (-7.3%), non-store sales (-5.3%), and clothing and personal goods (-2.1%). On a monthly basis, retail trade grew 4.1%, reversing a 2.0% decline in December and marking the strongest pace since September 2019.