Summer Products Sell Well in Japan amid July Heat

August 24, 2018

Tokyo- Summer products sold well in Japan in July as demand was fueled by record-breaking hot weather that baked the nation.

Shipments of home air conditioners and nonalcoholic beverages hit all-time highs, while swimming pools were crowded with people looking to cool off.

Meanwhile, department stores saw decreased customer traffic, because people avoided going outside if not necessary, amid the scorching heat, which the Japan Meteorological Agency described as "life-threatening."

On July 23, temperatures hit 41.1 degrees Celsius in Kumagaya, Saitama Prefecture, north of Tokyo, a record high for the country.

Shipments of room air conditioners in July climbed 10.9 from a year earlier to a record high of 1,763,000 units, according to the Japan Electrical Manufacturers' Association.

"Models with advanced functions such as energy-saving sold better than in normal years," an official at major electronics retailer Bic Camera Inc. said.

Shipments of nonalcoholic beverages rose more than 5 pct to a record 225 million cases, led by strong demand for tea and soft drink, according to an industry research company.

Oral rehydration solutions, or nutritious drinks rich in ingredients to counter dehydration, also gathered attention. Shipments of Otsuka Pharmaceutical Factory Inc.'s OS-1 surged 60 pct.

Swimming pools drew visitors not only during the daytime but also at night. The number of visitors to Tokyo's Toshimaen amusement park, including a large pool, grew by about 1.5 times in the period from June 30 to Monday from a year before.

Department stores saw same-store sales drop 6.1 pct in July from a year before, according to the Japan Department Stores Association. The industry experienced a smaller number of elderly shoppers, a major group of customers, an association official said.

Tokyo Disneyland and Tokyo DisneySea did not see a major decline in the number of visitors. As of Aug. 14, however, the Tokyo Disney Resort theme parks had canceled a total of 23 performances including parades and stage productions due to the hot weather.

Toshihiro Nagahama, chief economist at the Dai-ichi Life Research Institute, said, "While sales of some products fared well, impacts from the heat, including rising vegetable prices, emerged earlier than in an average year."

Vegetable prices stayed high in early August.

The average retail price of cabbages was 53 pct higher in the three-day period until Aug. 15 than in normal years, according to the agriculture ministry.

The price of cucumbers was 42 pct higher, and that of tomatoes was 27 pct higher. The data covered 470 supermarkets nationwide.

The heat "is unlikely to lift the economy considerably, given the impact of torrential rains and earthquakes," Nagahama said. Jiji Press