What: Japan's top three department store operators, Isetan Mitsukoshi Holdings Ltd., Takashimaya Co., and J. Front Retailing Co., saw their stocks rise by an average of 55% over the past year, outperforming the broader Topix’s 18%.

Why it is important: This surge highlights a trend where wealthier consumers are significantly boosting high-end retailers, even as lower-end retailers struggle due to inflation and selective consumer spending on staples.

Japan’s leading department store operators, including Isetan Mitsukoshi Holdings Ltd., Takashimaya Co., and J. Front Retailing Co., have seen their market capitalisation grow by 55% on average in the past year, driven by increased spending from wealthy shoppers and strong inbound tourism taking advantage of the weak yen. This performance contrasts sharply with lower-end retailers like drugstores, which have underperformed due to worsening consumer sentiment and selective spending on essentials. Analysts predict this polarisation in consumer spending will continue as inflation persists. High-end retailers are also benefiting from services catering to affluent customers and expanding offerings, such as personal shopping events and overseas-themed activities.

Wealthy shoppers boost Japan's high-end retail stocks