Japan's department store shares lag as tourist splurge slows
Low confidence stemming from economic uncertainty has also crimped tourist budgets with data compiled by the Japan Department Stores Association showing tax-free inbound sales at over 80 department stores across the country fell by 41% in May from a year earlier. The number of shoppers also slid, despite the tally of visitors setting a new record.
'The yen has gotten a bit stronger, which makes them feel like the deal isn't as good anymore,' said Tetsuo Seshimo, a portfolio manager at Saison Asset Management. 'Even if tourists visit Japan, whether they want to make purchases will depend on the level of confidence they have,' he added referring to their conviction in the economic strength of their home country.
The drop in sales continued into June with retailer H20 Retailing Corp. and Matsuya Co. Ltd.'s flagship stores announcing two-digit decline from a year earlier. Isetan Mitsukoshi Holdings Ltd. saw a decline of nearly a tenth from a year ago.
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