Japan Retail Sales Growth Below Estimates

Retail sales in Japan increased by 3.1% year-on-year in March 2025, up from a downwardly revised 1.3% growth in the previous month, but below market expectations of a 3.5% rise.

This marked the 36th straight month of expansion in retail sales, with rising wages continuing to support consumption.

Sales grew for fuel (1.8%), automobile (1.5%), machinery & equipment (6.7%), clothing & personal goods (7.6%), food & beverage (1.9%), non-store retailers (3.1%), other retailers (4.1%), and pharmaceuticals & cosmetics (3.7%).

By contrast, sales fell for department stores (-1.2%).

On a monthly basis, retail sales dropped by 1.2% in March, the first monthly decline in three months, reversing a downwardly revised 0.4% gain in February.