Highlights
Japan Retail: fashion shows strength amid rising cost pressures
The Japanese fashion retail sector is enjoying a standout year, with apparel and footwear sales surging to record highs, despite early signs of cooling demand. Strong Chinese tourist spending has helped to boost results, although geopolitical tensions pose risks for the future. Meanwhile, e-commerce continues to grow much faster than physical retail. Inflation is now converging across categories, with footwear prices rising in line with general inflation. However, the weakening yen is pushing up import costs, leaving retailers reliant on steady consumer demand to absorb rising costs
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