Tough Challenges Lie Ahead For Japanese Retailers Despite Recent Pick Up

The latest economic data and financial results from leading Japanese retailers suggest that the retailers' recent cost-cutting efforts have been effective in boosting their bottom-line growth. Japan's surging seasonal sales and government subsidies in recent months have looked to have worked in favour of retailers. However, in keeping with our bearish outlook for the sector, Japanese retailers may struggle to grow their revenues over the near term, and a shift of focus to the international scene will remain crucial to their continued growth going forward.

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