Japan Retail Sector "June 2026 sales (announced 2 July): Sales sluggish..."

Research evidence excerpt

Japan Retail Sector "June 2026 sales (announced 2 July): Sales sluggish..."

Global Research

3 July 2026ab

Japan Retail Sector Equities

JapanJune 2026 sales (announced 2 July): Sales

sluggish overall, with companies unable to Retail

overcome weather conditions Takahiro KazahayaAnalyst

takahiro.kazahaya@ubs.com

+81-3-5208 6226

Summary: Unable to overcome weather-related factors, overall sales struggled; Kazuki Oike

Associate Analystfocus on July onward

kazuki.oike@ubs.com

June sales (end of month) reported on 2 July by companies we cover showed that even +81-3-5208 6964

when excluding the impact from the number of holiday and weekend days being one

fewer than last year, all of the companies saw declines in same-store sales with the

exception of United Arrows (7606) and FOOD & LIFE COMPANIES (3563). We believe

the weak June sales were mainly attributable to temperatures being lower than in June

in each of the past three years. Indeed, Japan’s average temperature in June was the

lowest in four years, with the deviation in average temperature in June at +0.46°C in

2026, compared with +2.34°C in 2025, the highest on record, +1.29°C in 2024, the

third highest on record, and +1.22°C in 2023, the fourth highest on record. In addition,

a typhoon made landfall in June for the first time in 14 years (since 2012). Meanwhile,

consumption tax-exempt sales rose at Fast Retailing (9983), Ryohin Keikaku (7453),

ABC-Mart (2670), and ST HD (2685), and United Arrows.

Fast Retailing (9983): Sluggish amid unfavourable weather

Monthly sales (end of month, FY8/26): Domestic UNIQLO same-store sales plus e-

commerce sales fell 14.1% yoy (number of customers down 15.0%, sales per customer

up 1.1%), and directly managed stores plus e-commerce sales increased 13.7% yoy.