Risk of labor shortages and prolonged training periods

「In addition to progress in building up store personnel through enhanced hiring and training, sales per employee increased 4.7% year on year as the company advanced its CRM strategy.」

「In Japan, sales per employee increased significantly, rising 9.4% year on year, as progress was made in recruiting and developing store personnel, which had been a challenge.」

「The Group considers securing and training personnel its highest priority, but training highly capable employees takes time and may affect the Group's business performance.」

「From the beginning of the year, store staffing was generally adequate. In addition, high-priced fashion jewelry performed steadily due to inbound demand and the expansion of its business targeting affluent customers, resulting in an increase of ¥315 million, or 4.9%, from the same quarter of the previous year.」

「In the first quarter of the consolidated fiscal period, overall performance struggled, partly due to a decline in bridal jewelry and staff shortages at some stores. From the second quarter onward, store staffing has been gradually restored,」

「The jewelry industry in which our group operates continued to face an overall challenging business environment. Although sales of high-priced products remained firm, supported in part by the recovery in inbound demand, a growing desire to protect household finances against the backdrop of rising prices, soaring raw material costs and chronic labor shortages weighed on the industry.」

「The jewelry industry in which our group operates faced an overall challenging business environment. Although high-priced products remained firm, particularly at department stores, and the recovery in inbound demand supported consumption, consumers' preference for saving increased against the backdrop of successive increases in utility bills and prices of daily necessities. In addition, raw material costs remained high and the labor shortage continued to worsen.」

「In the jewelry business, the situation involving labor shortages and difficulty hiring in regional areas became increasingly severe. The contrast between strong department stores in urban areas and underperforming regional shopping centers became more pronounced, and sales at shopping-center stores, which had previously driven the company's performance, fell more than expected.」

「As the chronic labor shortage across the industry became more serious and hiring also became a challenge for the company, it pursued initiatives to strengthen its recruitment capabilities, including considering improvements to the working environment and a review of its recruitment activities.」

「In the jewelry industry, the business environment was difficult as soaring personnel expenses resulting from the chronic labor shortage, successive natural disasters including typhoons, the higher consumption tax rate, and the spread of COVID-19 further worsened consumer sentiment.」

「The Group considers securing and training personnel its highest priority, but training highly capable employees takes time and may affect the Group's business performance.」

「The business environment became challenging as soaring personnel costs associated with the chronic labor shortage were compounded by intensifying competition among companies across industries and business formats.」

「The business environment remains challenging as consumption continues to polarize by region and income level, a preference for saving persists amid concerns about the future, and competition among companies intensifies with the diversification of sales channels, compounded by the chronic labor shortage.」

「Regarding the outlook for the next fiscal year, economic recovery is expected against a backdrop of firm domestic and overseas demand. However, the outlook is expected to remain uncertain due to developments in a potential domestic consumption tax increase, the worsening labor shortage, uncertainty in overseas economies, and risk factors arising from volatility in the financial and capital markets.」

「In the distribution industry, the business environment was difficult as consumption became increasingly polarized by region and income conditions, household preferences for saving remained strong, the labor shortage became more severe, and competition among companies intensified as sales channels diversified.」

「In the jewelry industry, demand for high-priced products remained strong, supported by the wealth effect from rising share prices and gold prices. However, the business environment was challenging as consumption became increasingly polarized by region and income level, a stronger preference for saving weighed on personal consumption, and competition among companies intensified amid worsening labor shortages and the diversification of sales channels.」

「The business environment remains challenging, compounded by headwinds including soaring personnel costs associated with the chronic labor shortage.」

「Regarding the outlook for the next fiscal year, economic recovery is expected against a backdrop of firm domestic and overseas demand. However, the outlook is expected to remain uncertain due to the worsening labor shortage, uncertainty in overseas economies, and risk factors arising from volatility in the financial and capital markets.」

「In terms of costs, in addition to higher expenses for strengthening recruitment and securing talent amid labour shortages, personnel expenses increased significantly as the company strengthened its head office workforce with specialised know-how.」

「In the jewelry industry to which the company belongs, the business environment was difficult as consumption became increasingly polarized by region and income conditions, personal consumption lacked strength amid stronger preferences for saving and selective purchases, competition among companies intensified, and the labor shortage became more severe.」

「The Group considers securing and training personnel its highest priority, but training highly capable employees takes time and may affect the Group's business performance.」