July - Department Stores Sales down 3.3%

 July sales for members of the Japan Department Stores Association fell to 575.9 billion yen, down 3.3 percent from a year ago on an existing store basis.

This year, stores launched their summer sales at different times and economists watched with interest the effect this had.

Data released Tuesday by the association shows all major department store chains experienced a fall in sales of between 1 percent and 3 percent. Economists said companies are likely to continue their trial-and-error efforts as a result.

Isetan Mitsukoshi Holdings Ltd. pushed back the start of summer sales from July 1 to July 13.

The company believed that if its stores sold goods at ordinary prices for a longer period in July, when there is peak demand for summer clothing and miscellaneous goods, the stores would make more profit.

Even though the company's sales in July fell 2.3 percent from a year ago, a spokesman said, "We could convince consumers that seasonal goods should be purchased at original prices."

Isetan Mitsukoshi plans to further delay the launch of next summer's sales to around Aug. 1, and is thinking about pushing the winter sales back from Jan. 2 to Jan. 18.

Sanyo Shokai Ltd., an apparel maker and retailer, also pushed back the start of its main summer sales to July 13.

The company's July sales fell 7 percent from a year ago, but the selling of full-priced goods nearly doubled. A company official said, "This improved our profit rates."

Sogo & Seibu Co. and Daimaru Matsuzakaya Department Stores Co. left their July summer sales unchanged.

Takashimaya Co. had two sale stages for different kinds of goods on July 1 and 13.

An official of a major department store chain said, "Many customers found it difficult to understand when the sales would start and the campaigns as a whole lacked steam."

Takashimaya will revert to July 1 for the start of next summer's sales.

Department store summer sales used to begin in mid July but were pushed forward because of intensifying competition.

It is uncertain whether changes to the starting times affects profits.

But Osamu Goto of A.T. Kearney Inc., a business consulting firm, said, "Even if there are no short-term effects, the changes raised questions about how department stores should operate."


http://www.yomiuri.co.jp/dy/business/T120822003648.htm