Japan Retail: Uneven Fashion Recovery Amid Rising Rates and Inflation
The Japanese fashion market has experienced an uneven recovery amidst renewed price pressures and a weaker yen. Interest rates have continued to rise, reaching 0.98% in July, while consumer confidence remains subdued.
Clothing inflation has outpaced that of footwear, with prices remaining above 3% throughout much of the second half of 2025. In contrast, footwear prices eased gradually, dropping sharply to 0.5% in April and recovering gradually thereafter.
Commercial sales have diverged across sectors, with textile sales leading the turnaround. Following substantial contractions in mid-2025, textiles returned to positive territory in December and strengthened clearly thereafter, with sales rising by 2.4% in March and 12.1% in June.
Japan's footwear imports were highly volatile during the analysed period, but value generally performed better than volume. The average import price reached 1,378.6 yen per pair at the end of 2025, indicating a rise in prices despite falling volumes.