Local buyers, not tourists, are driving the trend into jewelry as the yen’s weakness sinks deeper than in decades
By Yui Hasebe and Shirley Zhao / Bloomberg
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Japanese shoppers are driving up luxury jewelry sales to a record as consumers seek a safe haven from inflation and the weakening yen.Sales of gems, precious metals and artwork at Japan’s department stores climbed 19 percent in the first half of this year from a year earlier to ￥330 billion (US$2 billion), the highest sales for the period since records began in 2008, according to data from the Japan Department Stores Association.Demand for jewelry comes as the Japanese yen weakens to almost ￥164 per dollar, its lowest level since the 1980s, while core consumer prices, excluding fresh food, rose 1.6 percent in June. The economic backdrop is prompting consumers to shift spending toward assets they see as better stores of value.
The Mitsukoshi department store in the Nihonbashi district of Tokyo. Isetan Mitsukoshi Holdings, Japan’s largest department store operator, saw jewelry and watches continue to lead domestic sales, according to a company spokesperson.
