Japan Retail Sector "Department stores: Sales trends in the first half o..."

Research evidence excerpt

Japan Retail Sector "Department stores: Sales trends in the first half o..."

Global Research

15 May 2026ab

Japan Retail Sector Equities

JapanDepartment stores: Sales trends in the first half

of May at Isetan Mitsukoshi, Takashimaya, and J. Retail

Front Retailing, and implications Takahiro KazahayaAnalyst

takahiro.kazahaya@ubs.com

+81-3-5208 6226

Summary: Luxury demand strong among domestic and inbound customers Kazuki Oike

Associate Analyst

Isetan Mitsukoshi Holdings (3099), Takashimaya (8233), and J. Front Retailing (3086) (all kazuki.oike@ubs.com

not covered) announced monthly sales trends for the first half of May (1-14 May) after +81-3-5208 6964

the 15 May close. Demand for luxury goods remains strong, with all three companies

reporting yoy sales growth. At J. Front Retailing, Daimaru Matsuzakaya Department

Store reported a yoy decline in consumption tax-free sales. We continue to view the

price competitiveness of luxury goods in Japan and favourable forex rate trends as

contributing factors to strong performance.

Isetan Mitsukoshi Holdings

In the first half of May, sales at Isetan Mitsukoshi's domestic department stores (same-

store total) rose 6.2% yoy, and those in the company's greater Tokyo outlets (same-store

total) rose 7.2%. By store, sales were +8.4% at the Isetan Shinjuku flagship store,

+8.0% at the Mitsukoshi Nihonbashi flagship store, and +6.4% at the Mitsukoshi Ginza

store. Consumption tax-free sales rose 11.6% yoy (number of customers -8.3%, sales

per customer +22.1%) and, by store, they were +12.6% at the Isetan Shinjuku store,

+10.8% at the Mitsukoshi Nihonbashi store, and +0.7% at the Mitsukoshi Ginza store.

Consumption tax-free sales in the domestic department store business (same-store total)