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RAPAPORT... Retail sales in Japan declined in April, following a 3 percentage point increase in the consumption tax at 8 percent and following very strong sales in March. The major department store chains reported preliminary revenue declines in April of anywhere from 8 percent to 15 percent and new vehicle sales fell nearly 6 percent year on year, according to Kyodo News. Major department store chain Takashimaya reported that sales declined 13.2 percent year on year in April. However, the retailer had reported a 32.3 percent increase in sales for March, prior to the tax increase. Before April came to an end, Isetan Mitsukoshi predicted that jewelry and luxury good sales had declined about 50 percent year on year, while Daimaru Matsuzakaya was anticipating that jewelry sales would drop by about 20 percent during the month. Nonetheless, food sales remained relatively stable after the tax increase and Japan's Chain Stores Association reported that the industry's overall revenue decline was not as severe as the drop experienced following a sales tax increase in 1997, according to Kyodo News.
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