Soaring Labor Costs Amid Labor Shortages
First written in FY2017-Q2. 6 of 10 entries say "Worsened", first in FY2017. Latest entry: FY2026-H1.
Palemo Holdings moved to the "Worse" side of this theme in 2017, 3 years before the typical company in this theme (2020).
The whole theme swung hardest in 2025: 36 of 59 companies on the "Worse" side.
36 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「In the consumption environment, efforts are progressing toward OMO, the integration of digital and physical channels, which guides customers seamlessly between e-commerce and physical stores. The need to use social media has also increased further, while securing and developing personnel have become challenges.」
Securing and developing personnel continue to be identified as challenges in the industry and consumption environment. No new quantification or actual occurrence is indicated for risks related to labor shortages or securing personnel. - FY2025WorsenedAnnual report
「However, if the Company Group is unable to secure personnel because it cannot adequately respond to the worsening labor shortage accompanying the decline in the working-age population in recent years or to rising wages, this may affect its business performance.」
The worsening labor shortage and response to rising wages are identified as explicit risks related to securing personnel. - FY2024WorsenedAnnual report
「In response to the serious labor shortage, the Company regards raising wages and improving employee benefits, as well as securing talent capable of taking on new businesses in addition to store employees, as important challenges.」
The labor shortage is described as “serious,” and wage increases and improved employee benefits are identified as necessary measures. - FY2019-Q2MaterialisedAnnual report
「Operating profit was ¥537 million, also affected by lower sales at existing stores and higher labor costs.」
The disclosure states that higher labor costs actually affected operating profit in the store retail business. - FY2018WorsenedAnnual report
「In the specialty retail industry to which our group belongs, operating conditions remained challenging as the declining birthrate, aging population and population decline made market expansion unlikely, while chronic labor shortages caused labor costs to rise, increasing store operating and maintenance costs.」
Labor shortages are described as “chronic,” and the disclosure cites increases in store operating and maintenance costs in addition to soaring labor costs. - FY2018-Q3WorsenedAnnual report
「In the specialty retail industry to which our group belongs, operating conditions remained challenging as labor costs rose due to chronic shortages of sales staff, changes in the environment associated with the opening of new commercial facilities and the revitalization of existing facilities continued, and store operating and maintenance costs showed an increasingly strong tendency to rise beyond previous levels.」
The disclosure states that shortages of sales staff have become chronic and that store operating and maintenance costs are increasingly tending to rise beyond previous levels, in addition to soaring labor costs. - FY2018-Q2WorsenedAnnual report
「In the specialty retail industry to which the Company belongs, market conditions remained stagnant amid Japan's declining birthrate, aging population and population decline. Labor shortages became more severe than before not only in the food-service industry but also in retail, while soaring labor costs spread throughout the industry, resulting in uncertain conditions.」
The disclosure states that labor shortages have become more severe than before and that soaring labor costs have spread throughout the industry, including retail as well as food services. - FY2018-Q1RestatedAnnual report
「In addition to higher product procurement costs caused by yen depreciation, conditions remained challenging as worsening labor shortages led to higher recruitment costs and labor expenses.」
The worsening labor shortage and continued increases in recruitment costs and labor expenses are again presented as factors contributing to a challenging environment. - FY2017WorsenedAnnual report
「In the specialty retail industry to which the Company belongs, there were no major changes in market conditions, but differences in performance among commercial facilities and specialty retailers became increasingly pronounced, while labor shortages throughout the industry became more severe, resulting in a challenging environment.」
The wording concerning labor shortages has intensified from “spreading” previously to “becoming more severe,” and they are presented as part of the challenging environment in the specialty retail industry. - FY2017-Q2First statedAnnual report
「Conditions remained uncertain as unstable foreign exchange conditions and soaring labor costs caused by labor shortages spread throughout the industry.」
Labor shortages and soaring labor costs are identified for the first time as external-environment risks affecting the specialty retail industry as a whole.