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Splurging by the Wealthy Is Polarising Japan’s Retail Stocks

The top three operators by market capitalisation, Isetan Mitsukoshi Holdings Ltd., Takashimaya Co. and J. Front Retailing Co., which operates the Daimaru and Matsuzakaya chains, rose by 55 percent on average in the past year, outperforming the broader Topix’s 18 percent.
Pedestrians at Tokyo's famous Shibuya crossing. Shutterstock.
Pedestrians at Tokyo's famous Shibuya crossing. (Shutterstock)

Japanese department store operators are benefiting from increased spending by wealthier shoppers despite the inflationary environment, in contrast to lower-end retailers which are underperforming as people become pickier in what staples they choose to buy.

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