Fashion pulse: Japan - February 2026

Consumer prices (February)

Fashion prices in Japan rose 2.1 percent year-on-year in February, above the overall inflation rate of 1.3 percent, according to Japan’s Statistics Bureau. Clothing and footwear inflation eased from 2.4 percent in January, though it remains one of the fastest-rising consumer categories. Japan imports 97 to 98 percent of its clothing, making import costs — driven partly by the weak yen — a key factor in fashion pricing.

Retail sales (February)

Department store sales showed low single-digit year-on-year gains in the first two months of 2026, according to the Japan Department Stores Association (JDSA). Performance varied significantly by location: Tokyo’s Nihombashi stores surged 18.9 percent while Shinjuku gained 8.0 percent. Tourist-oriented cities performed well, with Kyoto up 9.3 percent and Osaka up 7.7 percent, according to JDSA. Clothing accounts for 26.9 percent of Japanese department store sales, making this channel more important for fashion than in most Western markets. The Ministry of Economy, Trade and Industry (METI) publishes a broader retail sales report including clothing and personal goods by product category.

Tourism and macro context (February)

Japan received 3.60 million international visitors in January, down 4.9 percent YoY, according to the Japan National Tourism Organization (JNTO). Despite the decline, per-capita spending remains at record levels, driven by the weak yen. Shopping accounts for roughly one quarter to one third of all inbound tourism spending. Consumer confidence rose to 40.0 in February, the highest since April 2019, according to the Cabinet Office. The Cabinet Office’s Economy Watchers Survey, which polls retail workers and other street-level economic observers across 11 regions, provides additional colour on fashion-specific sentiment from those closest to consumers. The Bank of Japan (BOJ) held its policy rate at 0.75 percent, the highest since 1995. The yen traded at approximately 150 to the dollar, maintaining the dual dynamic of higher import costs for retailers and greater purchasing power for international shoppers.

The bottom line: Japan’s fashion market is shaped by its unique currency position: the weak yen inflates import costs for a country that imports virtually all of its clothing, yet simultaneously drives record tourist spending at department stores in Tokyo, Osaka, and Kyoto. Clothing inflation at 2.1 percent — above headline inflation — reflects these import cost pressures. Rising consumer confidence at 40.0 offers cautious optimism for domestic spending.

Note: The figures in this article are based on different reporting periods. Some indicators are already available for February, while others are reported with a time lag due to survey and publication cycles. This is common practice in official statistics and nevertheless allows for a reliable assessment of current market trends.