Store Closures and Business Impact from COVID-19
First written in FY2020. 8 of 15 entries say "Softened", first in FY2022-Q3. Latest entry: FY2025-Q1.
PAL GROUP Holdings moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
7 other companies' latest entry also says "Softened".
- FY2025-Q1SoftenedAnnual report
「During the first quarter of the current consolidated fiscal year, Japan's economy showed signs of a gradual recovery as socioeconomic activity progressed toward normalization and corporate earnings, employment and income conditions improved.」
It now states that the impact of store closures and lower customer traffic caused by the infectious disease had weakened and that socioeconomic activity was progressing toward normalization. - FY2024SoftenedAnnual report
「The economic environment recovered following the classification of COVID-19 as a Class V infectious disease on 8 May 2023, which removed various restrictions on economic activity, including isolation measures for infected individuals, requests to refrain from going out, including for close contacts, and restrictions on employment.」
It now states that the removal of restrictions on activity led to a recovery in store operations and the consumer environment. - FY2024-Q3SoftenedAnnual report
「At our physical stores, customer traffic and sales have both increased as the easing of restrictions on going out has increased human mobility and visitor numbers at commercial facilities have also begun to improve.」
It states that customer traffic and sales increased as restrictions on going out were eased and human mobility and visitor numbers at commercial facilities improved, further weakening the impact of store closures and lower customer traffic on results. - FY2024-Q2SoftenedAnnual report
「With COVID-19, signs of recovery have emerged in personal consumption, employment conditions and other areas as various restrictions have been eased, including the downgrading of its classification under the Infectious Diseases Control Act from Class II to Class V, and the economy has been gradually picking up.」
The downgrading of the infectious disease classification and the easing of restrictions indicate signs of recovery in stores and the consumer environment. - FY2024-Q1SoftenedAnnual report
「With COVID-19, social activity has recovered and the economy has been gradually picking up as various restrictions have been eased, including the downgrading of its classification under the Infectious Diseases Control Act from Class II to Class V.」
It describes the easing of restrictions associated with the infectious disease and the recovery of social activity, with the impact of store closures and lower customer traffic on results weaker than before. - FY2023SoftenedAnnual report
「During the current consolidated fiscal year, economic and social activity began moving toward normalization with COVID-19, and we believe its impact on our business and results was minor. We have assumed that COVID-19 will have no impact on our business from the following consolidated fiscal year onward. However, there are many uncertainties regarding the timing of its containment and other matters, and if changes occur in the circumstances surrounding our Group, our financial position and operating results from the following consolidated fiscal year onward may be affected.」
The description changed to state that the impact of store closures and lower customer traffic on results was minor in the current fiscal year and that no impact was assumed from the following fiscal year onward. However, uncertainties regarding the timing of containment and other matters remained. - FY2023-Q3SoftenedAnnual report
「As the easing of restrictions on going out increased human mobility and improved visitor numbers at commercial facilities, among other factors」
It states that human mobility and visitor numbers at commercial facilities improved as restrictions on going out were eased, and that the impact of store closures and lower customer traffic on results had weakened from before. - FY2022-Q3SoftenedAnnual report
「Following the lifting of the state of emergency and all priority preventive measures as of 30 September, store traffic also increased and was moving toward recovery, but」
It states that store traffic increased and was moving toward recovery after the declarations and other measures were lifted, and that the impact of store closures and lower customer traffic on results had weakened from the previous quarter and earlier. However, uncertainty over the outlook due to new variants remained. - FY2022-Q2Results recovered despite continued lower store trafficAnnual report
「Against this business backdrop, while ensuring employee health and safety, we placed the greatest emphasis on strengthening e-commerce sales to offset the decline in store traffic. As a result, apparel revenue increased 24.2% year on year to ¥39,824 million, and general merchandise revenue increased 78.3% to ¥23,325 million.」
The decline in store traffic remained an underlying assumption, but revenue in the apparel and general merchandise businesses exceeded the year-earlier level as a result of stronger e-commerce sales. - FY2022-Q1MitigatedAnnual report
「In the first quarter of the previous fiscal year, the cumulative store closure rate reached nearly 70% through the end of the first quarter following the declaration of a state of emergency on 7 April, whereas in the first quarter of the current fiscal year, the store closure rate remained at approximately 25% following the declaration of a state of emergency on 24 April, as a result」
The store closure rate declined from nearly 70% in the year-earlier period to approximately 25% in the current quarter, reducing the impact of store closures from the year-earlier period. - FY2021WorsenedAnnual report
「The impact of temporary store closures from April to May 2020 and reduced operating hours, which continued thereafter, was extremely significant. Revenue from the apparel business fell 22.2% year on year to ¥75,540 million, while revenue from the general merchandise business fell 5.9% to ¥32,904 million.」
The impact of store closures and reduced operating hours became evident in full-year results and was quantified as lower revenue in the apparel and general merchandise businesses. The impact was expected to increase in the first half of the following fiscal year. - FY2021-Q3The decline in revenue narrowed, but the impact of store closures and reduced operating hours continuedAnnual report
「E-commerce revenue increased by more than 30% year on year, but the impact of temporary store closures and reduced operating hours was extremely significant. Revenue from the apparel business was ¥54,414 million, or 74.7% of the year-earlier level. Revenue from the general merchandise business was ¥22,593 million, or 84.6% of the year-earlier level.」
It states that the year-on-year revenue levels of both businesses rose from the cumulative second-quarter period, but that the impact of temporary store closures and reduced operating hours remained extremely significant. - FY2021-Q2WorsenedAnnual report
「The impact of temporary store closures and reduced operating hours was extremely significant. Revenue from the apparel business was ¥32,061 million, or 65.8% of the year-earlier level. Revenue from the general merchandise business was ¥13,080 million, or 71.9% of the year-earlier level.」
It states that reduced operating hours remained in place even after all stores reopened and that the impact of temporary closures and other factors was extremely significant. The impact was quantified as lower revenue in both businesses and consolidated operating, ordinary and net losses. - FY2021-Q1MaterialisedAnnual report
「Requests from the government and local authorities for people to refrain from going out, together with the state of emergency declared by the government on 7 April, forced most of the company's stores nationwide to close temporarily for extended periods in April and May. Following the lifting of the state of emergency on 25 May, all stores resumed operations on 3 June, although some stores have continued to operate with reduced hours.」
The store-closure risk expected in the previous fiscal year materialized as extended temporary closures in April and May. While all stores resumed operations on 3 June, some have continued to operate with reduced hours. - FY2020First statedAnnual report
「The global spread of COVID-19 has made the outlook extremely uncertain. In April 2020, a state of emergency was declared and requests for people to refrain from going out were strengthened, forcing most of the company's stores nationwide to close temporarily. As a result, a substantial year-on-year decline in the company's sales for April and May 2020 became certain.」
The risk of store closures, which actually materialized as extended temporary closures, has been disclosed for the first time as a separate theme, with a substantial decline in sales expected in the following fiscal year.