To sight a recent example that is typical of what is happening in Japan in the luxury areas: "Mitsukoshi, the iconic Japanese department store operator, plans to slash its workforce by about one-sixth to cope with dwindling demand for luxury goods.”
This article, written by AFP, also went on to say, "Mitsukoshi, which is often compared to Britain's Harrods or US-based Bloomingdale's, will shoulder the costs by selling one of its stores in Tokyo which closed in May."
Is this the sign that Japan has reached its peak in the luxury consumer market? With an ageing population as one of the many issues facing Japan the new government has promised to reverse the “crippling fertility decline”, which has led to Japan's decreasing population, according to an article in The Australian "Pivotal Moment In Japan’s History" by Foreign Editor Greg Sheridan. Naturally, this will all take time and we wonder if there will be other casualties until the big ship is slowly turned around.
Article by: Melinda O'Rourke