Store earnings volatility driven by reliance on visitors to large-scale exhibition venues and events
First written in FY2020. 13 of 18 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2027-H1.
No other company in this theme has enough history to compare yet.
- FY2027-H1MitigatedAnnual report
「As events with strong drawing power continued to be held at large theme parks, commercial facilities, arenas, large-scale exhibition venues and other locations near the main stores, foot traffic around these facilities increased, and lodging demand, mainly for leisure, remained firm.」
The continued holding of events and firm foot traffic and lodging demand partially mitigated the risk of fluctuations in store earnings due to reliance on event attendees. However, some reservations were cancelled because of torrential rain. - FY2026-H1Evening and nighttime customer traffic declined as accommodation demand slowedAnnual report
「The daily hosting of various events at large theme parks, commercial facilities, arena facilities and large exhibition venues near key stores provided a degree of stability in daytime customer traffic, particularly in the morning and afternoon. However, sluggish accommodation demand in the area led to a certain decline in evening and nighttime customer traffic compared with the interim consolidated accounting period of the previous fiscal year.」
While event activity and daytime customer traffic remained firm, partly mitigating the previous risk, sluggish accommodation demand caused a decline in evening and nighttime customer traffic. - FY2025MitigatedAnnual report
「In addition to a substantial increase in accommodation numbers, particularly for leisure-related stays, as large-scale events were held daily, customer traffic increased both during the day and in the evening at stores attached to the company's hotels, supported by steady domestic accommodation demand during the holiday season and higher accommodation numbers associated with increased inbound spending.」
The risk of store earnings volatility caused by dependence on event visitors was further mitigated by the normal hosting of events at theme parks, commercial facilities and exhibition venues and increases in hotel guests and inbound visitors. - FY2025-Q1MitigatedAnnual report
「Events at large theme parks, commercial facilities and large exhibition venues near our core stores were held daily, substantially increasing attendance. At stores adjoining our hotels, the number of hotel guests was also bolstered by steady domestic lodging demand and increased inbound consumption, resulting in higher evening and nighttime store traffic and continued growth in existing-store sales.」
The risk of store earnings volatility caused by dependence on events and visitors was further mitigated by the normal hosting of events at theme parks, commercial facilities and large exhibition venues, increases in visitor numbers and higher hotel accommodation numbers. - FY2024-Q3MitigatedAnnual report
「Following the designation of COVID-19 as a Class 5 infectious disease in early May 2023, events at large theme parks, commercial facilities and large exhibition venues near our core stores were held daily at scales comparable to or exceeding those before the pandemic, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in continued sales growth.」
The risk of earnings volatility caused by dependence on large exhibition venues and events was further mitigated as events were held daily at a scale equal to or greater than before the COVID-19 pandemic, increasing visitor, accommodation and store customer numbers. - FY2024-Q2MitigatedAnnual report
「Events at large theme parks, commercial facilities and large exhibition venues near our core stores were held as scheduled, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in continued sales growth.」
The risk of earnings volatility caused by dependence on visitors at stores near exhibition venues and hotels was partly mitigated by the normal hosting of events and increases in visitor and accommodation numbers. - FY2024-Q1MitigatedAnnual report
「Since autumn last year, the pace of normalization of economic activity has accelerated, and leisure demand has continued to recover. In addition, large-scale events were generally held as usual at a large exhibition venue near our core stores, substantially increasing attendance. At stores adjoining our hotels, customer traffic during the evening and night also increased as the number of hotel guests rose, resulting in continued sales growth.」
The risk of earnings volatility caused by dependence on event visitors at stores near exhibition venues and hotels was partly mitigated by the normal hosting of large-scale events and increases in visitor and accommodation numbers. - FY2023MitigatedAnnual report
「Revenue grew significantly as visitor numbers increased following the generally normal hosting of large-scale events at major exhibition venues near key stores from the summer onward, and as evening and nighttime customer traffic increased at stores attached to the company's hotels, partly because of higher accommodation numbers.」
The risk of dependence on visitors at stores near exhibition venues and hotels was partly mitigated by the normal hosting of large-scale events and increases in visitor and accommodation numbers. - FY2023-Q3MitigatedAnnual report
「Revenue grew significantly as visitor numbers increased following the generally normal hosting of large-scale events at major exhibition venues near key stores from the summer onward, and as evening and nighttime customer traffic increased at stores attached to the company's hotels, partly because of higher accommodation numbers.」
The risk of earnings volatility arising from event dependence at stores near exhibition venues and hotels was partly mitigated by the normal hosting of large-scale events and increases in visitor and accommodation numbers. - FY2023-Q2MitigatedAnnual report
「Revenue grew significantly as leisure demand continued to recover from mid-March, after the priority preventive measures were lifted, and visitor numbers increased substantially, including with the hosting in August of the first large-scale anime event at a major exhibition venue near a key store in 3 years. Segment revenue declined because 2 stores were closed in the previous fiscal year, but segment profit increased as earnings improved with higher revenue at individual stores.」
The resumption of events and increase in visitor numbers improved revenue and segment profit at special-location stores. However, segment revenue declined because 2 stores were closed in the previous fiscal year. - FY2023-Q1MitigatedAnnual report
「From mid-March, after the priority preventive measures were lifted, revenue at stores attached to hotels and stores near large exhibition venues showed signs of improvement as leisure demand continued to recover and capacity restrictions at large events were removed.」
Revenue at stores attached to hotels and stores near large exhibition venues showed signs of improvement as leisure demand recovered and capacity restrictions at large events were removed. - FY2022RestatedAnnual report
「From October, after the state of emergency was lifted, revenue at stores attached to hotels and stores near large exhibition venues showed signs of improvement as leisure demand recovered and capacity limits at large events were gradually lifted. However, events at large exhibition venues near the company's key stores were not held through the end of September because of the Tokyo Olympics, major year-end events were held on a substantially reduced scale, and the January implementation of priority preventive measures in areas including the Tokyo metropolitan region in response to the spread of the Omicron variant limited the improvement.」
There were signs of improvement from the resumption of events and recovery in leisure demand, but cancellations and reductions in event scale, together with the renewed spread of infections, limited the extent of the improvement. - FY2022-Q2MitigatedAnnual report
「At stores near large exhibition venues and tourist facilities, revenue continued to recover gradually year on year. However, events at large exhibition venues were not held from June onward in connection with the Tokyo Olympics, and the Olympics were held without spectators. As a result, recovery in the number of tourists visiting the area did not progress, and customer traffic in July and August, the peak months for annual sales, remained sluggish.」
Revenue at special-location stores showed a gradual year-on-year recovery, partly mitigating the risk. However, sluggish customer traffic and the effects of event cancellations and reduced event scale remained. - FY2022-Q1MitigatedAnnual report
「At stores located near large exhibition venues and tourist facilities, sales have continued to improve as various events have gradually resumed. However, large-scale events continue to be canceled or subject to attendance restrictions, and a further period of time is expected to be required for sales to recover fully.」
Revenue improved as events gradually resumed, but the risk of fluctuations caused by cancellations of large-scale events and limits on visitor numbers remained. - FY2021-Q3MitigatedAnnual report
「As events at large exhibition venues gradually resumed, revenue began to improve, and the company continued to post segment profit on a monthly basis from August onward. However, large-scale events continued to be postponed or canceled in a number of cases, and a further period of time is expected to be required for a full recovery in revenue.」
The gradual resumption of events brought performance to the point where segment profit was secured on a monthly basis from August onward, but large-scale event postponements and cancellations continued, and a full recovery was expected to take time. - FY2021-Q2RestatedAnnual report
「Although events at large exhibition venues began to resume from September onward, large-scale events scheduled for the year continued to be postponed or canceled in a number of cases, and a further period of time is expected to be required for a substantial improvement in revenue.」
Although events began to resume, large-scale events scheduled for the year continued to be postponed or canceled, and the company continued to state that sales recovery at special-location stores was expected to take more time. - FY2021-Q1MaterialisedAnnual report
「At stores near large exhibition venues and tourist facilities, customer traffic declined significantly because of event cancellations, a sharp drop in tourists and a decline in the daytime population in central Tokyo, resulting in substantial decreases in both segment revenue and profit.」
The risk of dependence on visitors to stores near large exhibition venues and tourist facilities materialized as substantial declines in customer traffic, revenue and profit due to event cancellations, fewer tourists and a decline in the daytime population. - FY2020First statedAnnual report
「Some of the company's key convenience stores are used by many visitors to nearby large exhibition venues and actively implement sales initiatives tailored to various events, including selling specially procured products during large-scale events. A substantial decline in visitor numbers resulting from renovations to nearby large exhibition venues or event cancellations could therefore affect the performance of the group.」
The company explicitly identified as a new risk the possibility that renovations to large exhibition venues or event cancellations could reduce visitor numbers and affect earnings at convenience stores in special-location sites.