Decline in Existing Stores in the Franchise Business
First written in FY2017-Q2. 21 of 33 entries say "Worsened", first in FY2018-Q1. Latest entry: FY2027-H1.
Palemo Holdings moved to the "Worse" side of this theme in 2017.
1 other company's latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「ＦＣ 86,920 54,452」
FC revenue declined from ¥86.92 million in the prior-year period to ¥54.452 million. The contraction in the FC business continued on an interim-period basis. - 2026-03-27WorsenedFinancial results briefing materials
「Franchise income, etc. 423,108 374,826 362,062 ▲ 3.4」
Franchise income, etc. was ¥362.062 million, down from ¥374.826 million in the prior year. The franchise business continued to contract on a full-year basis. - FY2026-H1WorsenedAnnual report
「ＦＣ 100,368 86,920」
FC revenue decreased from ¥100.368 million in the same period of the previous year to ¥86.920 million, and the FC business continued to contract on a first-half basis. - FY2025WorsenedAnnual report
「ＦＣ 261,465 210,015」
FC revenue decreased from ¥261.465 million in the same period of the previous year to ¥210.015 million. The FC business continued to contract on an annual basis, against a backdrop of store cancellations and its declining importance. - FY2025-H1WorsenedAnnual report
「ＦＣ 134,109 100,368」
FC revenue decreased from ¥134.109 million in the same period of the previous year to ¥100.368 million. The FC business continued to shrink on a first-half basis, against a backdrop of store cancellations and its declining importance. - FY2024WorsenedAnnual report
「ＦＣ 331,189 261,465」
FC revenue decreased from ¥331.189 million in the same period of the previous year to ¥261.465 million. The annual figures also confirm the contraction of the FC business, against a backdrop of store cancellations and its declining importance. - FY2024-Q3WorsenedAnnual report
「ＦＣ 227,272 187,111」
FC revenue decreased from ¥227.272 million in the same period of the previous year to ¥187.111 million. The disaggregated revenue information shows that the FC business continued to shrink even after the transition to a single segment. - FY2024-Q2WorsenedAnnual report
「ＦＣ 149,796 134,109」
According to the disaggregated revenue information, FC revenue decreased from ¥149.796 million in the same period of the previous year to ¥134.109 million. The figures show that the FC business continued to shrink even after the transition to a single segment, which was prompted by its declining importance. - FY2024-Q1Declining importance of the FC business and transition to a single segmentAnnual report
「This change was made because the cancellation of FC business store agreements reduced the number of stores, diminishing the importance of the FC business in terms of revenue and profit. In addition, from the perspective of the Group's business development, allocation of management resources and actual management structure, the Company determined that it was reasonable to regard the retail business as a single integrated business.」
The Company changed from the previous two-segment structure, which included the FC business, to a single retail business segment because the cancellation of FC store agreements reduced the number of stores and diminished the importance of FC revenue and profit. - FY2023-Q3Revenue declined and the operating loss continued after the number of stores decreasedAnnual report
「In the FC business, the number of stores decreased by 1 to 8. The franchisor continued to review its merchandise mix, and customer traffic began to recover from autumn onward as demand for going out increased. However, revenue for the cumulative third quarter fell 9.8% year on year to ¥227 million, while the operating loss was ¥9 million, compared with an operating loss of ¥0 million in the same period of the previous year.」
The number of FC stores was 8. Although customer traffic at existing stores was said to be recovering, revenue fell 9.8% year on year and the operating loss was ¥9 million, indicating that the business continued to shrink and remain loss-making. - FY2023-Q2WorsenedAnnual report
「In the FC business, the number of stores decreased by 1 to 8. Although measures were implemented, including a review of the franchisor's merchandise mix and greater emphasis on full-price sales, customer traffic did not recover and existing-store revenue continued to decline. Revenue for the cumulative second quarter fell 11.4% year on year to ¥149 million, while the operating loss was ¥11 million, compared with an operating loss of ¥0 million in the same period of the previous year.」
The number of FC stores decreased from 9 to 8. Customer traffic did not recover even after the merchandise mix was reviewed and full-price sales were strengthened, revenue fell 11.4% year on year, and the operating loss was ¥11 million. - FY2023-Q1WorsenedAnnual report
「Although the FC headquarters implemented a sales strategy focused on private-label merchandise as part of its rebranding, this did not lead to a recovery in performance. Revenue for the cumulative first quarter was ¥73 million, down 8.2% year on year, while the operating loss was ¥5 million, compared with an operating loss of ¥3 million in the same quarter of the previous year.」
The number of FC stores remained unchanged at 9, but rebranding and a sales strategy focused on private-label merchandise did not lead to a recovery. Revenue fell 8.2% year on year, and the operating loss widened from ¥3 million to ¥5 million. - FY2022AdvancedAnnual report
「Revenue in the FC business was ¥368 million, up 17.7% year on year. The number of stores remained unchanged at 9. Although customer traffic did not recover to pre-COVID levels, revenue increased, partly because of the rebound from the previous year's restrictions on operations.」
The number of FC stores remained unchanged at 9, while revenue increased 17.7% year on year, partly because of the rebound from the previous year's restrictions on operations. Customer traffic had not yet recovered to pre-COVID levels. - FY2022-Q3AdvancedAnnual report
「In the FC business, the number of stores remained unchanged at 9. Although customer traffic did not recover to pre-COVID levels, partly because of restrictions on activities following the resurgence of COVID-19 infections, the franchisor revised its merchandise mix and the business also benefited from the rebound from the previous year's restrictions on operations. As a result, revenue for the cumulative third quarter increased 17.3% year on year to ¥251 million, while the operating loss was ¥0 million, compared with an operating loss of ¥22 million in the same period of the previous year.」
The number of FC stores remained unchanged at 9, while revenue increased 17.3% year on year and the operating loss narrowed from ¥22 million to ¥0 million. - FY2022-Q2Store count maintained; loss narrowedAnnual report
「In the FC business, the number of stores remained unchanged at 9. Although customer traffic did not recover, partly because commercial facilities shortened their operating hours, revenue increased 26.9% year on year to ¥169 million in the cumulative second quarter, while the operating loss was ¥0 million, compared with an operating loss of ¥14 million in the same period of the previous year.」
The number of FC stores remained unchanged at 9. Although customer traffic did not recover, revenue increased 26.9% year on year, and the operating loss narrowed from ¥14 million to ¥0 million. - FY2022-Q1Store count maintained; loss narrowedAnnual report
「In the FC Business, the number of stores was unchanged at 9. Customer traffic did not recover due to the impact of requests to refrain from going out, and despite further expense reductions, revenue for the cumulative first quarter was ¥80 million, up 102.2% year on year, while the operating loss narrowed to ¥3 million from ¥23 million in the same quarter of the previous year.」
The number of FC stores remained unchanged at 9. Although the recovery in customer traffic continued to be delayed by requests to refrain from going out, revenue increased 102.2% year on year, and the operating loss narrowed from ¥23 million to ¥3 million. - FY2021WorsenedAnnual report
「FC Business revenue was ¥312 million, down 36.5% year on year. The number of stores was unchanged, and operations continued at 9 stores.」
The FC Business maintained 9 stores, but revenue declined 36.5% year on year, and the business continued to contract due to the resurgence of the infection and delayed recovery in customer traffic. - FY2021-Q3WorsenedAnnual report
「In the FC Business, the number of stores was unchanged at 9. Although the franchisor adjusted product inventories and reviewed its merchandising mix in response to the resurgence of the coronavirus infection, the business did not recover. For the cumulative third quarter, revenue was ¥214 million, down 39.3% year on year, and the business posted an operating loss of ¥22 million, compared with operating income of ¥22 million in the same period of the previous year.」
The FC Business maintained 9 stores, but did not recover after inventory adjustments and a review of the merchandising mix amid the resurgence of the infection. Revenue declined 39.3% year on year, and the business shifted from operating income in the same period of the previous year to an operating loss. - FY2021-Q2WorsenedAnnual report
「In the FC Business, the number of stores was unchanged at 9. The business was significantly affected by all stores being closed during Golden Week and other factors. For the cumulative second quarter, revenue was ¥133 million, down 45.4% year on year, and the business posted an operating loss of ¥14 million, compared with operating income of ¥23 million in the same period of the previous year.」
The FC Business maintained 9 stores, but revenue declined 45.4% year on year due to the impact of all stores being closed and other factors, causing the business to shift from operating income to an operating loss. - FY2021-Q1WorsenedAnnual report
「In the FC Business, the number of stores was unchanged at 9. All stores closed during Golden Week because the commercial facilities suspended operations. For the cumulative first quarter, revenue was ¥39 million, down 65.5% year on year, and the business posted an operating loss of ¥23 million, compared with operating income of ¥4 million in the same quarter of the previous year.」
The FC Business ended the period with 9 stores, all of which closed during Golden Week. Revenue declined 65.5% year on year, and the business shifted from operating income to an operating loss. - FY2020-Q3WorsenedAnnual report
「In the FC Business, the number of stores was unchanged at 10 at the end of the third quarter, but despite the franchisor's review of product merchandising and strengthening of sales promotion, customer traffic did not recover and same-store sales continued to decline. Revenue was ¥353 million, down 12.0% year on year, and operating income was ¥22 million, down 17.2%.」
The FC Business ended the period with 10 stores, unchanged from the previous period, while customer traffic did not recover even after product merchandising was reviewed and sales promotion was strengthened. Both revenue and operating income were below the levels of the same period of the previous year. - FY2020-Q2WorsenedAnnual report
「In the FC Business, the franchisor reviewed product merchandising and strengthened sales promotion, but customer traffic did not recover and same-store sales continued to decline. The closure of 1 store in the previous period also contributed to revenue of ¥244 million, down 11.2% year on year, and operating income of ¥23 million, down 8.6%.」
Although product merchandising was reviewed and sales promotion was strengthened in the FC Business, customer traffic did not recover and same-store sales continued to decline. Both revenue and operating income were below the levels of the same period of the previous year. - FY2020-Q1RestatedAnnual report
「In the FC (franchise) Business, there was no change during the period, and the number of stores at the end of the period was 10.」
The number of FC Business stores was unchanged during the quarter, remaining at 10 at the end of the period. - FY2019WorsenedAnnual report
「In the FC (franchise) Business, the Tsukuba iias store closed when its agreement expired, leaving 10 stores at the end of the period.」
The closure of 1 store following the expiration of its agreement reduced the number of FC Business stores at the end of the period from 11 at the end of the previous fiscal year to 10. - FY2019-Q3RestatedAnnual report
「In the FC Business, revenue declined to ¥401 million, down 13.6% year on year, due to the closure of 2 stores in the previous period and continued weakness across the brand. However, reductions in rent and other expenses and the closure of unprofitable stores lifted operating income to ¥27 million, up 33.7% year on year.」
Revenue declined following the closure of 2 stores in the previous period and continued weakness across the brand, while operating income increased year on year due to reductions in rent and other expenses and the closure of unprofitable stores. The number of FC stores itself was unchanged at 11. - FY2019-Q2RestatedAnnual report
「In the FC (franchise) Business, there was no change, and the number of stores at the end of the period was 11.」
The number of FC Business stores was unchanged during the quarter, remaining at 11 at the end of the period. - FY2019-Q1RestatedAnnual report
「In the FC (franchise) Business, there was no change in the first quarter, and the number of stores at the end of the period was 11.」
The number of FC Business stores was unchanged during the quarter, ending the period at 11. The number of stores remained unchanged from the end of the previous period. - FY2018WorsenedAnnual report
「In addition to continued weakness across the brand, the transfer of the operating rights for the Aeon Mall Tsurumi-Ryokuchi store to another company and the expiration of the operating agreement for the Tokushima Yume Town store contributed to the decline in FC Business revenue, which was ¥643 million.」
Amid continued weakness across the brand, the closure or transfer of operating rights for 2 stores brought the number of FC Business stores at the end of the period to 11. - FY2018-Q3WorsenedAnnual report
「In the FC Business, the brand as a whole continued to struggle, and the franchise agreement for the Aeon Mall Tsurumi-Ryokuchi store ended. Revenue was ¥464 million and operating income was ¥20 million.」
Amid continued weakness across the brand, one franchise agreement ended, leaving 12 stores at the end of the period. Revenue and operating income for the FC Business were also disclosed. - FY2018-Q2WorsenedAnnual report
「In the FC Business, the franchisor implemented measures including a review of product merchandising and enhanced sales promotion, but customer traffic did not recover and same-store sales continued to decline. Revenue was ¥311 million, down 12.8% year on year, and operating income was ¥12 million, down 56.9%.」
Although the franchisor reviewed product merchandising and strengthened sales promotion, customer traffic did not recover and same-store sales continued to decline. Revenue fell 12.8% year on year, while operating income fell 56.9%. - FY2018-Q1WorsenedAnnual report
「In the FC Business, customer traffic continued to decline overall, resulting in substantial revenue declines at many stores. Revenue was ¥144 million, down 15.4% year on year, and despite reductions in expenses and other costs in response to the decline in revenue, the business posted an operating loss of ¥0 million, compared with operating income of ¥6 million in the same quarter of the previous year.」
The continued decline in customer traffic in the FC Business resulted in substantial revenue declines at many stores, causing the business to shift from operating income in the same period of the previous year to an operating loss. - FY2017RestatedAnnual report
「Revenue in the franchise business was ¥748 million, down 16.1% year on year. While the brand as a whole struggled throughout the year, sales at our existing stores declined year on year, and the closure of Aeon Mall Kumamoto, a major store, for approximately 3 months following the Kumamoto Earthquake also affected results.」
Although the number of stores in the FC Business was unchanged, the brand as a whole continued to struggle and same-store sales continued to decline. - FY2017-Q2First statedAnnual report
「In the franchise business, the number of existing stores continued to decline, while the closure of Aeon Mall Kumamoto, a high-profit store, following the earthquake resulted in revenue of ¥357 million, down 14.6% year on year, and operating profit of ¥28 million, down 59.7%.」
Separate from the Kumamoto Earthquake, the data indicate a structural fact: the number of existing stores in the FC Business has continued to decline.