In June, retail sales in the EU and Japan showed a recovery trend, with different degrees of recovery. The recovery of the EU clothing market is strong, while the process of the Japanese market is slow.
◆ EU market
Since June, the EU has restarted personnel mobility and encouraged people from all countries to travel within the EU, further promoting the catering and retail industries related to tourism. The recovery of retail sales is a signal of the V-shaped recovery of the EU economy. According to Eurostat data, in June, EU retail sales increased by 5.3% year-on-year and 1.2% month on month. Among them, textiles, clothing, footwear and automotive fuel performed best. In May, EU textile, clothing and footwear retail sales increased by 31.7% year-on-year and 48.3% month on month. It is expected that retail sales will continue to pick up in the coming months. With the recovery of physical retail, the momentum of online shopping has weakened. The retail sales increased by 17.1% year-on-year and decreased by 2.6% month on month.
Although the data continues to improve, there are still hidden worries behind it. In the short term, with the increase of household savings and the relaxation of epidemic prevention measures, consumers will gradually release restrained demand. However, the rising unemployment rate and stagnant consumer confidence are expected to continue for a long time, and it is still difficult to determine whether consumers' subsequent consumption power is sufficient.
◆ Japanese market
Japan's Ministry of Finance recently released a quick report of statistical data for June. The retail sales of clothing and apparel reached 718.8 billion yen, a year-on-year decrease of 12% and a month on month increase of 15.4%, rising sharply for two consecutive months. Compared with the same period in 2019, it still decreased by 23%, which is still far from the pre epidemic level. Although the whole country shows a recovery trend, the recovery speed of Tokyo Metropolitan Area and Osaka is slow due to the extension of the state of emergency. The department store retail industry continues to cool down, and the difficulties will continue
◆ clothing store
Clothing store guests picked up significantly. UNIQLO's retail sales (including online channels) increased by 0.1% year-on-year. Since last July, UNIQLO's sales have slightly exceeded the 2019 level. However, the main sales focus on underwear, home clothes and other indoor consumer goods. The sales of some midsummer items were strong, but still decreased by 1.2% compared with the sharp increase in sales in the same month last year.
The retail sales of United rows (including online channels) were flat year-on-year. Sales in Tokyo and Osaka decreased by about 30% compared with 2019, but sales in other regions recovered by 10% to 20%. About 300 stores have shortened their business hours, and the sales of all stores are slowing down, down 11.3% compared with 2019.
◆ department stores
In June, the retail sales of clothing and apparel in department stores reached 163.6 billion yen, an increase of 61.3% month on month and a year-on-year decrease of 8%, including a year-on-year decrease of 17% for men's clothing and 9.4% for women's clothing. As the opportunities to go to work and go out increased over the previous year, dresses and coats sold well, and party dresses and formal clothes also picked up.
The sales of major department stores in Isetan, Sanyue increased by 17%, the sales of Sakai Hanshin Department Store increased by 12%, the sales of Takashima and Matsuzaka department stores increased by 8%, and the sales of SOGO Xiwu increased by 5%. Compared with 2019, the prices of Isetan and Matsuzaka sakoya department stores in Sanyue decreased by 20%, the prices of sakashi sakhin department store and SOGO Xiwu department store decreased by 15%, and the prices of Takashima house decreased by 14%.
