Japan Einzelhandelsumsatz y/y

Retail sales in Japan unexpectedly fell by 1.1% year-on-year in August 2025, reversing an upwardly revised 0.4% gain in the previous month and missing market expectations for a 1% increase. This marked the first annual decline since February 2022 and the steepest since August 2021, as sluggish wage growth continued to erode consumer purchasing power amid elevated cost pressures and unseasonal weather that dampened shopping activity. Sales fell in automobiles (-7.9%), non-store retailers (-7.3%), fuel (-7.2%), department stores (-4.0%), and food and beverages (-0.2%). In contrast, sales rose in other retail categories (6.0%), machinery and equipment (5.4%), pharmaceuticals and cosmetics (2.5%), and textiles, clothing, and personal goods (0.8%). On a monthly basis, retail sales also dropped by 1.1% in August, following a 1.6% fall in July, which was the sharpest monthly decline since August 2021.