6 RETAIL NEWS CAPSULE PHILIPPINE RETAILING
Japan ' s Covid-19 crisis reawakens deflation fears as cash hoarding returns
A spike in coronavirus infections in Japan is driving local households to do what they have always done in times of crisis : Spend less and save more , stoking fears of a deeper retail recession and grinding deflation .
While demand for some goods is holding up , analysts warn it won ' t be strong enough to offset deflationary pressures caused by weak service spending .
Even fashion group Fast Retailing Co Ltd , seen as resilient due to brisk demand for its casual at-home attire , plans to lower prices of discount brand GU ' s spring and summer collections .
While Fast Retailing is wary of cutting prices at its main Uniqlo brand , discounts are planned in coming months to reduce inventory , CFO Takeshi Okazaki said in January .
Source : The Strait Times 01 / 27 / 2021
High-frequency data shows consumption began to falter even before January ' s state of emergency , catching policymakers off guard and forcing both the government and central bank to cut their assessments on private spending .
" Service spending is slumping sharply ," Bank of Japan Governor Haruhiko Kuroda said last week .
" We don ' t expect Japan to return to deflation . But we need to keep vigilant on price moves given very high uncertainty over the outlook ."
Facebook , Apple see profits boom from home-stay consumers
Apple Inc . and Facebook Inc . delivered stunning gains in profits and revenues over the past quarter , in the latest sign that Big Tech is delivering for pandemic-hit consumers around the world .
Blowout quarterly updates from the two Silicon Valley giants highlighted how consumers increasingly relied on social media , digital services and gadgetry as they hunkered down for the global health crisis . billion , increases of 53 % and 33 % when compared with the same period the prior year .
“ We had a strong end to the year as people and businesses continued to use our services during these challenging times ,” said Facebook chief executive Mark Zuckerberg .
Source : Philippine Star 1 / 28 / 2021
Apple said profit in the holiday period rose 29 % from a year ago to $ 28.7 billion , while revenues grew 21 % to $ 111.4 billion , with international sales accounting for nearly two-thirds of sales .
Sales topped the $ 100 billion mark for the first time as Apple won over pandemic-hit consumers with new gadgets and services , reporting solid gains in sales of iPhones , wearables and digital content .
The news was similar at Facebook , which saw its global user base increase in a world roiled by the coronavirus outbreak . Facebook reported profit of $ 11.2 billion on revenue of $ 28