Japanese retail sales rose 2.3 percent year on year in September 2026. That was below the 3.3 percent that economists had expected and slower than the upwardly revised 2.9 percent gain in August.
Department stores rose 2.7 percent, food and beverages 1.4 percent, and clothing and personal goods 1.3 percent. Non-store retail, which includes online sales, grew only 0.4 percent.
On a monthly basis, sales fell 0.7 percent in September after a 0.9 percent decline in August, the second consecutive monthly drop.
What is driving the slowdown
Retail has leaned on inbound tourism, particularly at department stores in central cities. Analysts warn that this support depends on cross-border travel flows and external shocks. Wage growth is still backing everyday spending, but households remain selective about what they buy. The latest visitor trends are covered in our Tourism section.
For the broader consumer picture, see our Consumer and Retail section and Economy coverage of prices and wages.
Source: Trading Economics, retail sales release of 29 October 2026.
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