Japans largest apparel chain Uniqlo has reported a 2.6 per cent rise in same-store sales for its Japanese outlets.

The retailer, known for its light and colourful apparel and cashmere jumpers, has beat the long-running Japanese trend for deflation.

Fast Retailing, which operates 738 Uniqlo stores in Japan, said the rise was down to consumer demand for summer classics and core products.

Japanese retail sales fell 4.4 per cent as the country raised its sales tax from 5 per cent to 8 per cent as it tries to reign in public debt.

“This is symbolic of the escape from deflation,” said Koichi Fujishiro, an analyst at Daiichi Life Research told the Financial Times.

“It will make it easier for other apparel companies to follow.”