TOKYO -- In spite of the headwind of the April 1 consumption tax hike, Seven & i Holdings and 16 other major retail companies in Japan generated record pretax profits for the March-May period.

Among 60 companies in the sector that had released quarterly earnings as of Friday, 31 logged higher sales and higher profit. The results underscore the return of consumers who had taken a breather following the rush to buy prior to the tax hike.

Convenience store operator Lawson posted a pretax profit of 16.5 billion yen ($159 million), up 15% on the year and a record. Existing-store sales in April ebbed 2% on the year as demand for tobacco dropped in the wake of hoarding prior to the tax hike, but the decrease narrowed to less than 1% in May.

The company expanded the selection of merchandise, incorporating low-sugar bread and salad as well as pricier, high-quality products, helping to attract women and senior customers.

Seven & i also marked a record pretax profit, with Seven-Eleven Japan maintaining same-store sales growth in April and May. Convenience stores in general are resilient because they focus on private-label merchandise, fresh-brewed coffee and other handy items.

Specialized retailers that sell only one brand or specific categories of products fared well.

Ryohin Keikaku, which operates Muji stores, is bouncing back quickly. Same-store sales declined a little over 2% in April, but rebounded to grow nearly 2% in May.

Furniture chain operator Nitori Holdings and bicycle retailer Asahi also rang up record pretax profits.

Consumer buying after the tax hike has been generally steady, but with wages failing to keep up with prices, households appear to be gradually feeling the heavier financial burden. Amid such conditions, pricing and expansion strategies are likely to sway retailers' earnings.

(Nikkei)