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CVS Bay Area (2687) · RiskMaterialised

Deteriorating industry conditions due to declining cleaning demand and rising costs

First written in FY2017-Q1. 14 of 32 entries say "Restated". Latest entry: 2026-10-09.

32entries
11years
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How it moved
ProgressHeldSoftenedWorseRestatedFY2018-Q1 – FY2019-Q2MaterialisedFY2019-Q3 – FY2022-Q1RestatedFY2023-Q3 – FY20232016: 220162017: 420172018: 320182019: 420192020: 220202021: 420212022: 220222023: 220232024: 220242025: 220252026: 52026
Same theme, other companies
Declining demand, rising costs and a shrinking operator base in the cleaning industryA theme 1 companies write about · 1 as a headwind · 0 as a tailwind

No other company in this theme has enough history to compare yet.

Full recordFilings, disclosures and news, newest first
  1. 2026-10-09MaterialisedEarnings

    「個人向けクリーニングにおいては、取次拠点の減少に加え、在宅勤務の普及による衣類クリーニング頻度の低下などから、取次件数の減少傾向が続いておりますが、」

    取次拠点減少と衣類クリーニング頻度低下による需要減少が継続し、クリーニング事業収入・利益の前年同期比減少として実績化した。
  2. FY2027-H1MaterialisedAnnual report

    「As a result, during the current interim consolidated accounting period, cleaning business revenue was ¥92 million, down 7.2% from the same period a year earlier, and segment profit was ¥40 million, down 5.8%.」

    In addition to the decline in service drop-off locations and lower clothing-cleaning frequency, delays in acquiring new contracts also emerged, making demand and business-environment risks evident in the declines in cleaning business revenue and profit.
  3. 2026-07-10RestatedEarnings

    「In consumer cleaning services, the decline in the number of collection points and the lower frequency of clothing cleaning as working from home became more widespread have resulted in a continued decline in the number of orders handled.」

    The company continued to report declining demand due to fewer collection points and a lower frequency of clothing cleaning.
  4. FY2026RestatedAnnual report

    「The environment surrounding the cleaning industry nationwide remains difficult. Demand for cleaning services for general clothing is trending downward as remote work expands and fast fashion becomes more widespread. The industry is also contracting markedly, with businesses facing difficulty due to higher energy costs for manufacturing and delivery and soaring raw material and supply prices, as well as collection points and factories being closed and businesses shutting down due to a lack of successors.」

    The difficult industry environment, including declining demand, rising energy and raw material costs, closures of collection points and factories, and business closures due to a lack of successors, continues to be noted.
  5. 2026-05-02MitigatedGeneral Meetings of Shareholders

    「As a result, revenue increased slightly, while profit rose substantially as the withdrawal from unprofitable customers and the review of management costs proved effective.」

    Despite continued declines in cleaning demand, the company reported improved profit as a result of withdrawing from unprofitable customers and reviewing management costs.
  6. FY2026-H1RestatedAnnual report

    「In consumer cleaning services, the downward trend in orders handled through collection points continues due to the decline in collection points and reduced demand for dress-shirt and suit cleaning as remote work becomes more widespread, although」

    The continued weakness in orders handled through collection points due to fewer collection points, the spread of remote work and lower demand for dress shirts and suits was noted. At the same time, the company explained that profitability had improved.
  7. FY2025WorsenedAnnual report

    「Demand for cleaning services for general clothing is trending downward as remote work expands and fast fashion becomes more widespread. The industry is also contracting markedly, with businesses facing difficulty due to higher energy costs for manufacturing and delivery and soaring raw material and supply prices, as well as collection points and factories being closed and businesses shutting down due to a lack of successors. Difficult conditions continue.」

    The risks have been specified as the ongoing decline in demand and rising costs, together with soaring raw material and supply prices, factory closures, business closures due to a lack of successors, and industry contraction.
  8. FY2025-H1MaterialisedAnnual report

    「As a result, for the interim consolidated accounting period, cleaning service revenue was ¥95 million, down 14.7% year on year, and segment profit was ¥20 million, down 20.3%.」

    Amid continued declines in collection points and demand for dress shirts and suits, cleaning service revenue fell 14.7% year on year and segment profit fell 20.3%, showing the impact of lower demand in the results.
  9. FY2025-Q1MaterialisedAnnual report

    「Although the decline in orders handled through collection points in consumer cleaning services continues due to the decline in collection points and reduced demand for dress-shirt and suit cleaning as remote work becomes more widespread, the company is strengthening its approach to existing customers and rolling out measures to stimulate demand. It is also working to acquire new customers for house cleaning, storage services and other offerings, which are highly compatible with its condominium front-desk services and are expected to see demand growth, while strengthening the rollout of its total cleaning service, Online Concierge. As a new initiative, the service allows customers to request collection of items for cleaning and make inquiries 24 hours a day via the mobile communications tool LINE, and supports cashless payments. The company is working to expand convenient services that meet the individual needs of condominium residents and can be provided at all times regardless of whether a front desk or a partner factory is located nearby.」

    The company noted that the downward trend in orders handled through collection points continued and that cleaning service revenue fell 8.4% year on year. While the ongoing decline in demand was reflected in results, it strengthened its approach to existing customers and its response through house cleaning and storage services and Online Concierge.
  10. FY2023RestatedAnnual report

    「Although the impact of COVID-19 is gradually easing, the downward trend in the number of orders handled through collection points in consumer cleaning services continues, due to the decline in collection points and reduced demand for dress-shirt and suit cleaning as remote work becomes more widespread.」

    While noting that the impact of the pandemic is gradually easing, the continued weakness in orders handled through collection points due to fewer collection points, the spread of remote work and lower demand for business attire is also noted.
  11. FY2023-Q3RestatedAnnual report

    「Although the impact of COVID-19 is gradually easing, the downward trend in the number of orders handled through collection points in consumer cleaning services continues, due to the decline in collection points and reduced demand for dress-shirt and suit cleaning as remote work becomes more widespread.」

    While the impact of the pandemic is easing, the decline in orders handled through collection points due to fewer collection points, the spread of remote work and lower demand for business attire continues to be noted.
  12. FY2023-Q1MitigatedAnnual report

    「Although the impact of COVID-19 has gradually eased, corporate cleaning services such as hotel linen remain sluggish. For individual cleaning services, the number of collection transactions continues to decline because of the decrease in collection points and lower demand for cleaning dress shirts and suits as working from home becomes more widespread.」

    While the impact of the pandemic appears to be gradually easing, weak demand for hotel linen, dress shirts and suits, as well as the decline in the number of orders handled through collection points, continues.
  13. FY2022WorsenedAnnual report

    「Nationwide demand for cleaning services continues to decline year after year, while continued increases in laundry and delivery costs have led to the closure of cleaning facilities and collection points. In addition, the increase in working from home due to COVID-19 has reduced the volume of business clothing, including dress shirts and suits, handled by the industry, making the environment surrounding the cleaning industry increasingly challenging.」

    In addition to declining demand and rising costs, the company explicitly identified lower volumes of dress shirts and suits handled as a result of working from home, making the factors behind the deteriorating industry environment more concrete.
  14. FY2022-Q2RestatedAnnual report

    「As a result, for the cumulative second quarter of the current consolidated fiscal year, cleaning business revenue was ¥420 million, up 2.4% year on year, and segment profit was ¥15 million, up 74.8% year on year.」

    Cleaning business revenue and profit improved year on year, but weak demand for hotel linen, dress shirts, and suits and the delay in a full recovery continued.
  15. FY2022-Q2RestatedAnnual report

    「Due to the impact of COVID-19, hotel linen remains sluggish, while demand for cleaning dress shirts and suits has declined as working from home becomes more widespread. A full recovery in revenue is therefore expected to take some further time.」

    The company continued to state that weak demand for hotel linen, dress shirts, and suits would persist and that a full recovery in revenue would take time. However, business revenue and profit improved year on year.
  16. FY2022-Q1MaterialisedAnnual report

    「Hotel linen remains sluggish, while demand for cleaning dress shirts and suits has declined as working from home becomes more widespread. A full recovery in revenue is therefore expected to take some further time.」

    Although revenue and earnings improved due to the reaction to temporary closures in the previous year, the company stated that demand for hotel linen, dress shirts, and suits continues to decline.
  17. FY2021-Q3MaterialisedAnnual report

    「Since the lifting of the state of emergency in May, revenue has shown signs of improvement as clients have resumed operations. However, the annual peak in cleaning demand is usually in early spring, hotel linen demand continues to decline substantially, and demand for cleaning dress shirts and suits continues to fall as working from home becomes more widespread. A full recovery is therefore expected to take some further time. As a result, for the cumulative third quarter of the current consolidated fiscal year, cleaning business revenue was ¥600 million, down 34.9% year on year, and segment profit was ¥13 million, down 72.7% year on year.」

    Demand for hotel linen, dress shirts, and suits continued to decline, resulting in business revenue down 34.9% year on year and segment profit down 72.7% year on year.
  18. FY2021-Q2MaterialisedAnnual report

    「Since the lifting of the state of emergency, revenue has shown signs of improvement as clients have resumed operations. However, the annual peak in cleaning demand is usually in early spring, hotel linen demand continues to decline substantially, and demand for cleaning dress shirts and suits continues to fall as working from home becomes more widespread. A full recovery is therefore expected to take some further time.」

    Demand for hotel linen, dress shirts, and suits continued to decline, resulting in cleaning business revenue down 36.9% year on year and segment profit down 76.5% year on year.
  19. FY2021-Q1WorsenedAnnual report

    「The temporary closure of some condominium front desks due to the spread of COVID-19 caused a substantial temporary decline in collection points. In addition, handling of uniform management services for commercial facilities and linen services for hotels declined sharply, resulting in a substantial decrease in segment revenue.」

    The decline in cleaning demand became more concrete in the form of fewer collection points, reduced handling of uniform management and hotel linen services, and a substantial decline in segment revenue.
  20. FY2020-Q2MaterialisedAnnual report

    「From late March to early April, there were more days with low temperatures than in the previous year, and demand for cleaning services did not increase. In addition, linen services to a major customer ended at the end of May. As a result, revenue declined, while segment profit increased because cost reductions through operational efficiency improvements were advanced.」

    In addition to weak cleaning demand caused by low temperatures, linen services to a major customer ended at the end of May, resulting in lower revenue and the realization of demand and customer risks. On the other hand, profit increased due to cost reductions from improved operational efficiency.
  21. FY2020-Q1MaterialisedAnnual report

    「Revenue has declined, partly because there were more days with low temperatures from late March to early April than in the previous year, which prevented demand for cleaning associated with seasonal clothing changes from increasing.」

    Lower temperatures prevented seasonal clothing-change demand from increasing, resulting in lower revenue in the cleaning business and the realization of the demand decline risk.
  22. FY2019WorsenedAnnual report

    「However, if partner cleaning operators go out of business or we are unable to secure new partners, it will become difficult to expand this business, which may affect the Group's performance.」

    In addition to the existing risks of declining demand and rising costs, the company explicitly identified the risk that partner operators going out of business or difficulties securing new partners could constrain business expansion.
  23. FY2019-Q3MaterialisedAnnual report

    「However, segment profit has declined as labor cost increases have driven up laundry and delivery costs.」

    Higher labor costs drove up laundry and delivery costs, resulting in lower segment profit in the cleaning business.
  24. FY2019-Q2RestatedAnnual report

    「In the cleaning industry, spending on cleaning services has declined year after year, partly because of the establishment of Cool Biz and improvements in clothing functionality. Continued increases in laundry and delivery costs have also led to the closure of cleaning facilities and collection points, making the environment surrounding the cleaning industry increasingly challenging in recent years.」

    The company continued to describe declining demand resulting from Cool Biz and improvements in clothing functionality, rising laundry and delivery costs, and store closures.
  25. FY2019-Q1RestatedAnnual report

    「In the cleaning industry, spending on cleaning services per household has declined year after year. In addition to declining demand, continued increases in laundry and delivery costs have led to the closure of cleaning facilities and collection points, making the environment surrounding the cleaning industry increasingly challenging in recent years.」

    The company continued to describe declining household spending, declining demand, rising laundry and delivery costs, and store closures.
  26. FY2018-Q3RestatedAnnual report

    「Although demand for individual cleaning services continues to decline, we continue working to stimulate demand by acquiring new dormitory and condominium facilities and holding promotional sales for existing customers.」

    The company described declining individual demand as an ongoing industry condition and continues to stimulate demand by acquiring new facilities and holding promotional sales.
  27. FY2018-Q2RestatedAnnual report

    「In the cleaning industry, spending on cleaning services per household has declined year after year, affected by improvements in the functionality of dress shirts, the growing availability of suits that can be washed at home, and the shift toward more casual and lower-priced clothing. In addition to declining demand, continued increases in laundry and delivery costs have led to the closure of cleaning facilities and collection points, making the environment surrounding the cleaning industry increasingly challenging in recent years.」

    The company continued to describe declining demand resulting from the spread of home laundering and more casual, lower-priced clothing, as well as rising laundry and delivery costs.
  28. FY2018-Q1RestatedAnnual report

    「In the cleaning industry, spending on cleaning services per household has declined year after year, affected by improvements in the functionality of dress shirts, the growing availability of suits that can be washed at home, and the shift toward more casual and lower-priced clothing. In addition to declining demand, continued increases in laundry and delivery costs have led to the closure of cleaning facilities and collection points, making the environment surrounding the cleaning industry increasingly challenging in recent years.」

    The company continued to describe declining demand resulting from the spread of home laundering and more casual, lower-priced clothing, as well as rising costs.
  29. FY2017WorsenedAnnual report

    「Although labor costs, including delivery costs, are rising, service prices have not been widely revised. As a result, the operating environment for the partner plants handling the cleaning business has become increasingly challenging. While demand for cleaning services can be expected in some areas, there have been cases in which orders from new clients could not be accepted because of the total costs, including delivery, and difficulties securing plant personnel.」

    The company described cases in which new orders could not be accepted because of rising costs and difficulties securing plant personnel.
  30. FY2017-Q3RestatedAnnual report

    「Spending on cleaning services per household has declined year after year, affected by improvements in the functionality of dress shirts, the growing availability of suits that can be washed at home, and the shift toward more casual and lower-priced clothing. In addition to declining demand, continued increases in laundry and delivery costs have led to the closure of cleaning facilities and collection points, making the environment surrounding the cleaning industry increasingly challenging in recent years.」

    The company continued to describe declining demand resulting from the spread of home laundering and more casual, lower-priced clothing, as well as rising laundry and delivery costs.
  31. FY2017-Q2RestatedAnnual report

    「Spending on cleaning services per household has declined year after year, affected by improvements in the functionality of dress shirts, the growing availability of suits that can be washed at home, and the shift toward more casual and lower-priced clothing. In addition to declining demand, continued increases in laundry and delivery costs have led to the closure of cleaning facilities and collection points, making the environment surrounding the cleaning industry increasingly challenging in recent years.」

    The company continued to describe declining demand resulting from the spread of home laundering and more casual clothing, rising costs, and store closures.
  32. FY2017-Q1First statedAnnual report

    「The environment surrounding the cleaning industry has become increasingly challenging in recent years, as cleaning facilities and collection points have been closing amid not only declining demand but also continued increases in laundry and delivery costs.」

    The company identified declining demand, higher laundry and delivery costs, and store closures as industry risks.
Moved together

"Growing Risk of Global Economic Disruption and Uncertainty Over the Economic Outlook" moved the same way as this thread, in the same document, in 9 of its 31 moves.

998554★123456
  1. ★This thread
  2. 1Growing Risk of Global Economic Disruption and Uncertainty Over the Economic Outlook9×
  3. 2Low awareness and insufficient appeal to foreign visitors, and delayed monetization of unit-style hotels9×
  4. 3Increasing Hotel Supply and Slowing Growth in Accommodation Demand8×
  5. 4Risk of Impairment of Fixed Assets and Held Securities5×
  6. 5Declining Demand and Operating Disruptions Across All Businesses Due to COVID-195×
  7. 6Deteriorating Convenience-Store Operating Conditions Due to Labor Shortages4×

★ is this thread; numbers match the list above. The number on a line is how many documents both moved the same way in; lines between the other threads count the documents they moved together in too. Threads that move together often sit closer.

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Deteriorating industry conditions due to declining cleaning demand and rising costs | CVS Bay Area Inc. (2687) | Komori