27 February 2002, 08:23 Japan retail sales to continue declining trend - METI official
TOKYO (AFX-ASIA) - An official of the Ministry of Economy, Trade
and Industry said that retail sales are expected to continue their
declining trend and it is unlikely that they will bottom out in the
near future.
"I don't think we can easily find a sector which is able to push up
overall retail sales for the time being," the official said.
The official said the auto sector, a key group along with household
goods, is unlikely to return to positive growth as long as firms
release cheap sub-compact and light vehicles.
Retail sales in the auto sector fell 4.8 pct year-on-year in
January compared with a 7.6 pct fall in December, while household goods
were down 7.3 pct after a 9.8 pct fall the previous month.
The official said household goods had previously been led by PC
sales but until there is a recovery in the PC segment or another
category emerges to take the lead, "I don't think the sector will
recover."
The official said a sharp sales increase in new electrical
products, such as DVDs, digital cameras and liquid crystal TVs is not
yet capable of pushing up overall retail sales.
The official said the ministry is holding is overall assessment
unchanged -- "retail sales are weak."
In January, sales in department stores rose 0.1 pct year-on-year on
an existing store basis, thanks to strong sales of designer brand
products, but sales in supermarkets were down 3.5 pct.
"The state of supermarket sales continued to be severe in January,"
the official said.
He said that a 20 pct year-on-year drop in sales at one supermarket
operator, which he declined to name, dragged down the overall outcome
in the sector.
© 1999-2024 Forex EuroClub
All rights reserved