Splurging by the Wealthy Is Polarising Japan’s Retail Stocks

Japanese department store operators are benefiting from increased spending by wealthier shoppers despite the inflationary environment, in contrast to lower-end retailers which are underperforming as people become pickier in what staples they choose to buy.

The top three operators by market capitalisation, Isetan Mitsukoshi Holdings Ltd., Takashimaya Co. and J. Front Retailing Co., which operates the Daimaru and Matsuzakaya chains, rose by 55…