Retailers and luxury brands are taking a hit in Japan following the tragic earthquake and tsunami that has killed thousands of people and rocked the country.

Tesco, which has 142 shops in Japan, said about 60 of its stores are operating reduced hours due to power restrictions ååbut all remain open.

A spokesman for the grocer said some stores are seeing increased demand as consumers panic buy but it was “keeping up with demand”.

He said stock is still getting to its stores - which are all in the greater Tokyo area - and that Tesco has other businesses in Asia that will help support the supply chain.

Despite reports that some people are leaving Tokyo amid fears of meltdowns at nuclear power plants, the spokesman said there are no current plans to shut shops.

Lush chief executive Andrew Gerrie said on Wednesday that six of its Japanese stores have been destroyed and all other stores are closed for the next two days. He said some stores - not Lush - in Tokyo are trading with just one light on to conserve energy.

Shares in luxury retailers such as Burberry and Louis Vuitton parent company LVMH have tumbled following the earthquake. The FTSE 100 fell to a 2011 low on Monday with British heritage brand Burberry dropping the most, down 5.45%.

Japan represents 11% of global luxury sales and contributes about 19% of sales for Hermes, 9% for LVMH, 16% for PPR and 7% for Burberry.

Bernstein Research senior analyst Luca Solca said consumer demand could return to normal in a matter of weeks: “As much as this is a

huge human tragedy, the impact on luxury and fashion businesses could be modest.”

Designer Paul Smith, who has about 200 shops in Japan, said: “I am saddened by the tragic events in Japan. So far I know that my staff is safe but we are waiting for details on how everyone will be affected.”

Electricals groups expected there will be little impact from the tragic events in Japan, although there was some concern about shortages of products from brands such as Sony.

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