Key Facts
• August 1: Four major department stores reported July sales declines year-on-year.
• Mitsukoshi Isetan: Sales dropped 5.2%; luxury brands and fall items performed well domestically.
• Takashimaya: Domestic sales fell 3.7%; duty-free sales plunged 33% due to weak inbound demand.
• Hankyu Hanshin: Sales decreased 8.8%; duty-free sales showed slight mid-July improvement but fell 40% overall.
• Daimaru Matsuzakaya: Sales declined 0.6%; duty-free sales dropped 30.1% due to lower customer spending.
• Inbound spending remained below last year’s levels but showed signs of recovery late in July.
Summary
In July 2025, Japan’s four major department store chains-Mitsukoshi Isetan, Takashimaya, Hankyu Hanshin, and Daimaru Matsuzakaya-reported year-on-year sales declines, primarily due to reduced inbound spending. Mitsukoshi Isetan saw a 5.2% drop, with domestic luxury goods performing well but overseas customer sales lagging. Takashimaya experienced a 3.7% decline in domestic sales and a 33% drop in duty-free sales, impacted by weak demand for high-end products among inbound customers. Hankyu Hanshin’s sales fell 8.8%, with duty-free sales down 40% despite slight mid-July improvements. Daimaru Matsuzakaya reported a 0.6% decrease in overall sales, with duty-free sales down 30.1% due to lower customer spending. While inbound spending remained below last year’s levels, some improvement was observed toward the end of the month.
