Millions go on shopping spree ahead of sales tax hike

"as the government tries to tackle its crushing national debt."

How about cut spending? No good?

Japan is already vastly overpriced on scores of items. To imagine that most people have space to hoard large amounts of provisions in their homes is laughable.

Agree with kurisupisu. Many things in Japan are still way overpriced even after years of deflation. So in the future we can expect to pay $14 for a small jar of jam like we did in the mid-nineties? I really, really see a huge slump in sales coming up. People will tighten their purse strings. Job layoffs and salary cuts will ensue.

very sad when i think of sales figures from April onward...

There will be a price war in April due to a temporary loss in customer traffic.

It's not 'just' 3% that people will be saving.Price of many good have gone up for the past couple of weeks,ahead of the new tax increase.Will prices go up more come April? I have seen prices jump by 10-25% only this month.I have bought enough stuff,stuff we use on a daily basis to save thousands of yen in the future.That's called saving! Buy now pay less instead of paying more later.

I went to the supermarket yesterday and thought their had been an outbreak of dysentery given how people were buying bog roll.

"as the government tries to tackle its crushing national debt."

How about cut spending? No good?

For the life of me, it's a NO brainer and as to why, no one gets it is beyond me.

The fixation on toilet paper is something I cannot wrap my head around.

Just filled up the gas tanks on the two cars my wife amend I have. Other than that we don't need to spend another yen on anything.

This tax hike is not going to help....

Abe has proved to be a liar. He pledged no taxes but that's been proven to be a lie!

His economic plan is about to crumble... Then his administration will follow in turn.

"Millions of shoppers are making a mad dash to stores ahead of Tuesday’s tax rise" I doubt that millions of intelligent Japanese would be scared into shopping due to an impending few percent rise in prices. This article makes it sound like a shopping apocalypse.

Cut spending!? Are you crazy? Why would anyone get into politics if they couldn't waste/use/steal public money? It is just a big game to them.

Before the tax hike demand was high so prices were not cut

Yesterday Aeon was doing it's usual end-of-month okyakusama kansha day with 55 off everything if you paid with an Aeon card. So if you shopped at Aeon yesterday, you saved 8%, not 3%.

Japan is bracing for its first sales tax rise in years, with last minute shoppers buying up a host of goods from gold to ice cream, as the government tries to tackle its crushing national debt. AND in other news.......

Yoshimi Watanabe, the head of the minor opposition Your Party has spent 800 million yen on lucky charms.

Japan is to give up to $1.5 billion in finalncial aid to Ukraine

..........

Good time to short the Nikkei from tomorrow, because everyone will suddenly stop buying.

People respond to incentives. If the sales tax will increase, then consumers will purchase goods prior to the imposition of the tax.

I just got back from buying a bunch of food, like pasta sauce, raisins, honey-roasted peanuts, and, why not, a bottle of Jim Beam bourbon!

@Serrano

More workers in them days. Fewer pensioners. : (

Love it how easy it is to control 130 million people by tricking them into buying sprees. How much can an average household afford to spend disposable money in a single month? 100,000, 200,000 Yen. For crying out loud, that's just a mere 3,000 to 6,000 Yen. I assume the economy spending will hit rock bottom in the next 1 to 3 months, as everything has already been bought what is needed. My heartfelt condolences goes out to all shopping crazed sheep.

Don't know anyone who intends to go shopping to save the 3% extra...usual weekend shoppers in town, no extra queues or delays. Seems to have been hyped up by the media...

It seems to me the the money saved for most people will not be that significant. When sales stagnate after the tax hike, stores will have to cut prices to bring customers back. Before the tax hike demand was high so prices were not cut if they were it wasn't by much. When demand goes down so will the prices. This tax hike will drive prices down, not up. Most products in Japan have overinflated prices so business will have to lower prices to make money. So we could see better shopping prices than the pre-hike inflated sale prices. So in the end most people who shopped before the increase will not have saved anymore than the yearly New Year's Day sale. Sorry but that's economics.

Not mentioned in the article but gasoline taxes are going up along with the 3% raise too.

with 55 off everything if you paid with an Aeon card.

Forget the shift key perhaps? lol!

“We will update our products with higher quality or more volume.”

"Fukubukuro" all year round (?!)

Absolutely ridiculous. There was a 20m line at my station just for teikis!

I will be glad when this stupidity is over, most of the real deals will be had after 4/1.

This reminds of all the fools buying because of "eco points".......... some never learn

It depends on what people are buying. Anyway until today you have the substitution effect (+) (buy now vs. buy later) minus the income (reduction) effect coming soon (-). After April 1 you have two negative effects for consumption, substitution (from buying already) (-) and income (-). Most people will see a decrease in real purchasing power after April first, however it may be hoped to the contrary.

Sales of durable goods will fall significantly, and since many of those are on a slim margin already limiting how much retailers will be willing or able to reduce future prices.

Since people will be living on more limited budgets, you can be sure that disposable income will be manager more frugally.

Abe, with his idiotic "three arrows" has just torpedoed the struggling economy. His tummyache is about to return with a vengeance.

Damn, how tragic it is to see this nation, lacking any new ideas whatsoever. They still believe it's 1964 and they can grow forever, keep the economic wonder flowing...

Economic growth might be good, but what would make Japan a better place would be if they downsized.

Many people are really suckers, though. Yesterday, I witnessed people buying large packs of toilet paper and other cheapass products. As if these product would maje a difference when buying them in April...

" I don't mind the tax hike so much. What I do mind is that most stores are now posting prices without tax included."

Seeing the price without tax is a reality slap. It's better that way.

Amazig how the government got along with zero consumption tax until 1989 and then it was just 3%.

I had to go shopping to buy one item yesterday. Bad idea. Took forever.

ratpack. Read my comment 3 above yours.

Did a bit of pre-tax jacking today myself. I'll be starving the tax beast to the best of my ability from here on out.

Hey there's a shortage of AZZ wipes no toliet paper!!! OMG

I don't mind the tax hike so much. What I do mind is that most stores are now posting prices without tax included.

to save 3%??? idiots.