Japanese retail groups Seven & I Holdings Co and Aeon Co reported lacklustre quarterly profit figures on Tuesday, as consumers cut back on spending due to rising fuel and food costs.
Seven & I saw profit drops in several of its holdings, and Aeon saw a 20 per cent drop in the first quarter.
Masatsugu Okeya, market analyst at Chibagin Asset Management, told Reuters: 'Except for Grocery stores, the entire retail sector is having a very difficult time. Apparel sales are weighing down general merchandisers like Aeon, and regional shopping centres are seeing dull same-store sales because of high gasoline prices.'
