Japan’s Department Stores Rally as Heat Draws Shoppers Indoors

The country saw its hottest summer on record this year, as climate change drives heat waves worldwide.

Photographer: Akio Kon/Bloomberg

Shares of Japanese department stores have enjoyed record-breaking rallies in recent weeks, as extreme summer heat drove consumers into air-conditioned stores, boosting sales and fueling investor optimism.

Isetan Mitsukoshi Holdings Ltd., Takashimaya Co., and J. Front Retailing Co. shares all climbed more than 10% last month, notching their strongest August performances since 2020. J. Front, which runs the popular Daimaru chain, hit an all-time high last week after posting robust August sales growth.