Retail sales in Japan experienced a year-on-year increase of 1.4% in February 2025, marking the 35th consecutive month of growth. However, this reflects a deceleration from January’s upwardly revised 4.4% growth and falls short of market expectations for a 4% rise, representing the slowest pace of expansion since last October. Despite this, rising wages continued to drive consumer spending.
Segment-wise, sales recorded gains in several categories: fuel sales rose by 7.2%, automobiles by 6.2%, machinery and equipment by 5.6%, and clothing and personal goods by 4.5%. Conversely, the sales of food and beverages decreased by 0.8%, non-store retailers saw a slight dip of 0.2%, department stores experienced a more significant decline of 4.5%, other retailers fell by 1.8%, and pharmaceuticals and cosmetics slipped by 0.9%. On a monthly comparison, retail sales increased by 0.5% in February, showing a slight reduction from an upward revision in January's figures.
