Improving Profitability Through Energy Conservation and More Efficient Store Operations
First written in FY2016. 14 of 34 entries say "Worsened", first in FY2017. Latest entry: 2026-08-06.
2nd RETAILING moved to the "Worse" side of this theme in 2020.
The whole theme swung hardest in 2018: 2 of 10 companies on the "Worse" side.
5 other companies' latest entry also says "Advanced".
- 2026-08-06AdvancedInvestor presentation
「Although in-house production restrained advertising expenses, total SG&A increased 15.3% year on year and remained broadly within expectations.」
The quarterly results showed both restraint from in-house advertising production and higher costs from new openings and personnel recruitment. - FY2026AdvancedAnnual report
「Although in-house production restrained advertising expenses, operating profit grew more than expenses because system development and operating costs, logistics costs and other expenses were below budget.」
In-house production of advertising and lower-than-budgeted spending on system development and operations, logistics, and other expenses contained the increase in costs, allowing operating income growth to exceed the increase in expenses. The operating margin on sales also improved from 2.6% to 3.0%. - FY2026-H1WorsenedAnnual report
「Meanwhile, the sales SG&A ratio increased from 38.2% in the first six months of the previous fiscal year to 38.6% because personnel expenses rose substantially due to higher wages and an increase in the number of hires. The operating margin on sales declined from 2.7% to 2.3%.」
Against a backdrop of higher personnel expenses resulting from wage increases and a larger number of hires, the sales SG&A ratio rose from 38.2% to 38.6%, while the operating margin declined from 2.7% to 2.3%. - FY2025WorsenedAnnual report
「The operating margin on sales declined from 3.9% in the previous fiscal year to 2.6%, primarily due to higher personnel expenses, rent and lease payments, depreciation, and credit card processing fees.」
The operating margin declined from 3.9% to 2.6% against a backdrop of higher personnel expenses, rent and lease payments, depreciation, and payment processing fees. - FY2025-H1WorsenedAnnual report
「Meanwhile, the sales SG&A ratio increased from 31.8% in the first six months of the previous fiscal year to 38.2% because personnel expenses rose substantially due to higher wages and an increase in the number of hires. The operating margin on sales declined from 3.4% to 2.7%.」
Against a backdrop of higher personnel expenses resulting from wage increases and a larger number of hires, the sales SG&A ratio rose from 31.8% to 38.2%, while the operating margin declined from 3.4% to 2.7%. - FY2024AdvancedAnnual report
「The operating margin on sales increased from 2.8% in the previous fiscal year to 3.9%, primarily due to higher gross profit from resale products, despite the impact of increases in personnel expenses, rent and lease payments, depreciation, and credit card processing fees.」
Despite higher costs, including personnel expenses, the operating margin on sales improved from 2.8% to 3.9% due to higher gross profit from resale products. - FY2024-Q3Higher sales absorbing increased costs while maintaining the operating marginAnnual report
「Although the gross margin on sales declined as rental sales continued to decrease and the sales mix shifted toward resale luxury goods and new products, particularly games, the increase in consolidated sales absorbed higher selling expenses, personnel expenses, and rent and lease payments. The operating margin on sales was 4.1%.」
Selling expenses, personnel expenses, and rent and lease payments continued to increase, but the increases were absorbed by higher consolidated sales, resulting in an operating margin on sales of 4.1%. The description concerns absorption of higher costs through sales growth, not cost reductions. - FY2024-Q2Lower SG&A ratio alongside lower operating marginAnnual report
「The sales SG&A ratio declined from 36.1% in the first six months of the previous fiscal year to 31.8%, as higher sales, driven by strong performance in the core resale clothing and fashion goods at 2nd STREET, absorbed increases in selling expenses, including advertising expenses, personnel expenses, and rent and lease payments. However, the operating margin on sales declined from 3.6% to 3.4% because the gross margin on sales declined as rental sales continued to decrease and the sales mix shifted toward resale luxury goods and new products, particularly games.」
The sales SG&A ratio declined from 36.1% to 31.8%, but the operating margin declined from 3.6% to 3.4% due to the lower gross margin on sales. The increase in costs was absorbed by higher sales, but margins did not improve. - FY2024-Q1Higher costs alongside margin improvementAnnual report
「The operating margin on sales rose from 4.9% in the first quarter of the previous fiscal year to 5.4%. Although advertising expenses, personnel expenses, and rent and lease payments increased, demand for resale products as a means of managing household finances amid higher prices remained firm. Sales of the core resale clothing and fashion goods at 2nd STREET continued to perform well, helped by the expansion of the resale market.」
Although advertising expenses, personnel expenses, and rent and lease payments increased, the strong sales of resale clothing improved the operating margin on sales from 4.9% in the same period of the previous year to 5.4%. The situation is described as margin improvement despite higher costs, rather than cost reductions themselves. - FY2022MitigatedAnnual report
「The operating margin on sales increased from 1.3% in the previous fiscal year to 2.4%, owing to higher sales and control of selling, general and administrative expenses, particularly personnel expenses.」
The operating margin on sales improved from 1.3% in the previous year to 2.4% due to control of selling, general and administrative expenses, particularly personnel expenses. - FY2022-Q2WorsenedAnnual report
「Selling, general and administrative expenses 59,893 60,696 Operating income 3,623 1,482」
Selling, general and administrative expenses increased from ¥59,893 million in the same period of the previous year to ¥60,696 million, while operating income declined from ¥3,623 million to ¥1,482 million. The results for the quarter indicate deterioration despite efforts to improve earnings through greater cost efficiency. - FY2022-Q1WorsenedAnnual report
「The operating margin on sales declined from 4.3% in the first quarter of the previous fiscal year to 1.5%. Demand for games and rentals from people staying at home as a result of calls to refrain from going out to prevent the spread of COVID-19, which emerged in the first quarter of the previous fiscal year, had subsided. In addition, the continued restrictions on going out prevented the recovery of Second Street's performance, particularly in clothing.」
The operating margin on sales declined from 4.3% to 1.5% due to the end of stay-at-home demand and the delayed recovery at Second Street. - FY2021WorsenedAnnual report
「The operating margin on sales declined from 3.3% in the previous fiscal year to 1.3%. Gross margins on new products are lower than those on rental and resale products, while the increase in selling, general and administrative expenses, including personnel expenses associated with continued new store openings during the COVID-19 pandemic, exceeded this effect.」
The operating margin on sales declined from 3.3% to 1.3% due to the low gross margins on new products and the increase in selling, general and administrative expenses, including new store openings and personnel expenses. - FY2021-Q3WorsenedAnnual report
「We were unable to fully absorb increases in selling expenses, including payment processing fees associated with the rise in cashless payments and advertising and promotional expenses to strengthen purchasing and attract customers, as well as increases in selling, general and administrative expenses, including personnel expenses associated mainly with store openings centered on 2nd STREET and costs related to the development of new-format stores. As a result, operating income, ordinary income and net income attributable to owners of the parent all fell below the previous fiscal year's results.」
The increases in payment processing fees, advertising and promotional expenses, personnel expenses and new-format development costs could not be absorbed. Operating income was ¥4,457 million, down 37.2% year on year. - FY2021-Q2WorsenedAnnual report
「We were unable to fully absorb increases in selling expenses, including payment processing fees associated with the rise in cashless payments and advertising and promotional expenses to attract customers, as well as increases in selling, general and administrative expenses, including personnel expenses associated with store openings and costs related to the development of new-format stores. As a result, operating income, ordinary income and net income attributable to owners of the parent all fell below the previous fiscal year's results.」
The increases in cashless payment fees, advertising and promotional expenses, personnel expenses, and new-format development costs could not be absorbed. Operating income was ¥3,623 million, down 20.9% year on year. - FY2021-Q1MitigatedAnnual report
「Selling, general and administrative expenses were also held in check through measures including shorter operating hours, resulting in operating income, ordinary income and net income attributable to owners of the parent all exceeding the same period of the previous year. Although the sales gross margin declined as sales of new products, centered on games with lower gross margins than reuse products, increased, the operating margin improved slightly from 4.1% in the first quarter of the previous consolidated fiscal year to 4.3%, as the increase in selling, general and administrative expenses was also contained.」
The increase in selling, general and administrative expenses was contained through measures including shorter operating hours. Operating income increased 36.7% year on year, and the operating margin improved from 4.1% to 4.3%. - FY2020WorsenedAnnual report
「Although sales at existing reuse stores, centered on 2nd STREET, remained solid and new store openings progressed smoothly, and 株式会社おお蔵, acquired during the fiscal year and engaged in the wholesale sale of reused luxury watches, brand-name bags and other products, contributed to sales, the increase in selling, general and administrative expenses, including new store opening costs and personnel expenses, exceeded these contributions. As a result, the operating margin declined from 5.4% in the previous consolidated fiscal year to 3.3%.」
The increase in selling, general and administrative expenses, including new store opening costs and personnel expenses, exceeded sales growth, causing the operating margin to decline from 5.4% to 3.3%. - FY2020-Q3WorsenedAnnual report
「Due in part to increases in selling, general and administrative expenses, including personnel expenses and costs related to the development of new-format stores, operating income, ordinary income and net income attributable to owners of the parent all fell below the previous fiscal year's results. As a result, for the nine-month period of the fiscal year under review, the Group reported sales of ¥222,041 million, up 2.2% year on year, operating income of ¥7,099 million, down 45.1%, ordinary income of ¥7,637 million, down 45.0%, and net income attributable to owners of the parent of ¥4,218 million, down 50.3%.」
Increases in selling, general and administrative expenses, including personnel expenses and costs related to the development of new-format stores, continued, resulting in operating income declining 45.1% year on year, ordinary income declining 45.0%, and net income for the quarter declining 50.3%. - FY2020-Q2WorsenedAnnual report
「Regarding operating performance, although sales at existing 2nd STREET stores continued to perform well despite some impact from unfavorable weather, and sales increased above the same period of the previous year to ¥138,048 million following the addition of 株式会社おお蔵, acquired in the first quarter and engaged in the wholesale and retail of reused luxury watches, brand-name bags and other products, operating income, ordinary income and net income attributable to owners of the parent all fell below the previous fiscal year's results due in part to increases in selling, general and administrative expenses, including personnel expenses and costs related to the development of new-format stores.」
While sales increased 4.1% year on year, increases in selling, general and administrative expenses, including personnel expenses and costs related to the development of new-format stores, resulted in operating income declining 37.4% year on year, ordinary income declining 40.1%, and net income for the quarter declining 45.9%. - FY2020-Q1WorsenedAnnual report
「However, due to increases in selling, general and administrative expenses, including personnel expenses associated with promotional activities and preparations for store openings, operating income, ordinary income and net income attributable to owners of the parent all fell below the same period of the previous year.」
Due to increases in selling, general and administrative expenses, including personnel expenses associated with promotional activities and preparations for store openings, operating income, ordinary income and net income for the first quarter fell below the same period of the previous year. - FY2019AdvancedAnnual report
「As we proceeded with investments including the additional installation of self-checkout registers at media stores, alongside measures to optimize selling, general and administrative expenses, operating income was ¥15,668 million, up 6.8% year on year.」
The company describes the specific result of pursuing investments such as additional self-checkout registers in parallel with the optimization of selling, general and administrative expenses: operating income increased 6.8% year on year. - FY2019-Q3New-store opening costs absorbed through efficiency improvementsAnnual report
「Although selling, general and administrative expenses, including personnel expenses and land and rent costs, increased due to new store openings, operating income remained at approximately the previous year's level as we continued to improve the efficiency of operations at existing stores.」
While personnel expenses and land and rent costs associated with new store openings continued to increase, operating income was maintained at approximately the previous year's level through more efficient operations at existing stores. - FY2019-Q2WorsenedAnnual report
「Although we continued to improve the efficiency of operations at existing stores, operating income declined as selling, general and administrative expenses, including personnel expenses and land and rent costs, increased due to new store openings.」
While efficiency improvements at existing stores continued, operating income declined due to increases in personnel expenses, land and rent costs and other expenses associated with new store openings. - FY2019-Q1AdvancedAnnual report
「Meanwhile, continued efforts to further review efficient operations resulted in the ratio of selling, general and administrative expenses to sales falling below the same period of the previous year, and operating income increased.」
The company describes continued efforts to further review efficient operations, the ratio of selling, general and administrative expenses to sales falling below the same period of the previous year, and operating income increasing 22.7% year on year. - FY2018-Q3RestatedAnnual report
「Gross profit also exceeded the same period of the previous year as sales increased, while continued efforts to reduce selling expenses, supplies and consumables expenses and other costs resulted in each profit measure exceeding the same period of the previous year.」
Reductions in promotional expenses, personnel expenses, supplies and consumables expenses and other costs continued. Selling, general and administrative expenses decreased from ¥77,461 million in the same period of the previous year to ¥77,247 million. This is described as the continuation of existing cost-efficiency measures. - FY2018-Q2AdvancedAnnual report
「Gross profit also exceeded the same period of the previous year as sales increased, while further efforts to reduce promotional expenses, personnel expenses, supplies and consumables expenses and other costs resulted in each profit measure exceeding the same period of the previous year.」
Further reductions in promotional expenses, personnel expenses, supplies and consumables expenses and other costs are described. Selling, general and administrative expenses decreased from ¥50,959 million in the same period of the previous year to ¥50,871 million, and operating income was ¥7,463 million. - FY2018-Q1AdvancedAnnual report
「Gross profit also exceeded the same period of the previous year, while efforts to reduce selling expenses, personnel expenses, supplies and consumables expenses and other costs resulted in each profit measure exceeding the same period of the previous year.」
Specific reductions in promotional expenses, personnel expenses, supplies and consumables expenses and other costs are described, and operating income reached 128.0% of the previous year's level. The disclosure indicates progress in cost reductions and earnings improvement in response to the cost increases associated with store expansion and other factors that became apparent in the previous fiscal year. - FY2017WorsenedAnnual report
「Due to the impact of personnel expenses, rent and other costs associated with active promotional activities and the opening of reuse-related stores, operating income was ¥8,662 million, down 47.7% from the previous fiscal year, and ordinary income was ¥9,040 million, down 49.3%,」
The increases in personnel expenses, rent and other costs associated with the expansion of reuse-related stores and promotional activities became apparent over the full fiscal year, and operating income and ordinary income declined substantially. - FY2017-Q3Personnel expenses and rent increases associated with store expansion made explicitAnnual report
「In addition, personnel expenses and rent increased as the number of stores grew, resulting in each profit measure falling below the same period of the previous year.」
Increases in personnel expenses and rent accompanying store growth were explicitly identified as factors weighing on profit. No withdrawal of power-saving or operational-efficiency measures is stated. - FY2017-Q2RestatedAnnual report
「Although used mobile phones and reuse-related products showed solid growth, other products did not fully offset the decline in rentals. In addition, selling, general and administrative expenses increased with the rise in store count, resulting in each profit measure falling below the same period of the previous year.」
The increase in selling, general and administrative expenses accompanying store growth is again cited as a factor weighing on profit, following the previous quarter. - FY2017-Q1Cost increases became apparentAnnual report
「Selling, general and administrative expenses increased as the number of stores grew and we actively promoted sales using the Group's proprietary electronic money, “Lueca (ルエカ),” resulting in each profit measure falling below the same period of the previous year.」
Although no withdrawal of power-saving or store-operation efficiency measures is stated, store growth and Lueca promotions emerged as factors behind the increase in selling, general and administrative expenses in the quarter. - FY2016First statedAnnual report
「Operating income increased by ¥6,994 million from the previous consolidated fiscal year to ¥16,552 million, up 73.2% year on year, as gross margin improved and selling, general and administrative expenses were reduced through power-saving measures and more efficient store operations.」
Power-saving measures and more efficient store operations are cited as means of reducing selling, general and administrative expenses.