Securing Store Properties, Large-Store Profitability and Exit Costs
First written in FY2017. 5 of 12 entries say "Restated". Latest entry: 2026-04-22.
Y's table moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2026: 6 of 15 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- 2026-04-22WorsenedFinancial results presentation
「The recovery in performance at the large-format XEX WEST store was delayed.」
Concerns regarding the profitability and recovery of the large-format store took concrete form as a delay in the recovery of XEX WEST's performance. - FY2025RestatedAnnual report
「• There is a possibility that leases for company-operated stores may expire • Some leases stipulate penalties for early termination」
The risks associated with closing company-operated stores, lease expirations and early-termination penalties, as well as measures to limit losses through transfers of stores with existing fixtures and equipment, continue to be disclosed. - FY2025-Q1MitigatedAnnual report
「In particular, sales at large-format stores in central urban areas were strong in March, which is also a period of high demand for farewell and welcome parties.」
The company explained that sales at large-format stores in central urban areas, which had previously been described as struggling, were strong, supported by demand for farewell and welcome parties and similar events. - FY2024WorsenedAnnual report
「There is a possibility that the business plan prepared when opening a store may not be achieved and that the expected earnings may not be generated.」
In addition to the existing risks related to properties, the profitability of large-format stores and exit costs, failure of company-operated stores to meet their business plans is explicitly identified as a separate risk, with both impact and likelihood rated medium. - FY2024-Q2WorsenedAnnual report
「In dine-in operations, recovery progressed as more people returned to work in central urban areas and companies relaxed their rules concerning eating out following the change in the legal classification of COVID-19. However, recovery plateaued in August 2023 due to the extreme heat and an increase in the number of people testing positive for COVID-19, among other factors.」
Although sales at stores in central urban areas continued to recover, the recovery plateaued in August due to the extreme heat and an increase in the number of people testing positive for COVID-19, among other factors. - FY2024-Q1MitigatedAnnual report
「In dine-in operations, sales at stores in central urban areas began to recover toward the end of the first quarter of the current consolidated cumulative period, as more people returned to work in central urban areas and companies relaxed their rules concerning eating out following the change in the legal classification of COVID-19.」
The Company stated that sales at stores in central urban areas, which had previously struggled, recovered against a backdrop of more people returning to work and relaxed corporate rules. - FY2023RestatedAnnual report
「The leases for directly operated stores may expire. Some lease agreements stipulate penalties for early termination.」
The Company identified the risks of exiting directly operated stores, lease expiry and early termination penalties in its risk table, and also described measures to limit losses, such as transferring stores with their existing fixtures and fittings. - FY2023-Q2RestatedAnnual report
「In dine-in operations, sales at large stores in central urban areas were slow to recover, and customer numbers also declined due to the resurgence of COVID-19, resulting in sales remaining below 2019 levels.」
The Company reconfirmed in its explanation of actual results that the delayed recovery at large stores in central urban areas has continued. - FY2023-Q1WorsenedAnnual report
「In dine-in operations, large stores located in office areas and mainly serving nearby workers struggled, while stores in suburban and residential areas recovered to levels close to those in 2019.」
The Company explicitly stated in its explanation of actual results that large stores were struggling, making the previously identified risks concerning location, large-store profitability and demand more concrete. - FY2020RestatedAnnual report
「When opening new stores, the Group determines whether to proceed after considering location, lease terms and store profitability, among other factors. If it cannot find properties meeting the Group’s desired conditions, failure to open stores as planned and the resulting failure to achieve its growth strategy, among other factors, may affect the Group’s business results.」
The Company continued to disclose the risks of failure to find properties meeting the required conditions, the possibility of not opening stores as planned, and failure to achieve its growth strategy. - FY2018RestatedAnnual report
「When opening new stores, the Group determines whether to proceed after considering location, lease terms and store profitability, among other factors. If it cannot find properties meeting the Group’s desired conditions, this may affect the Group’s business results.」
The Company continued to disclose the risks of failure to find properties meeting the required conditions, failure of large stores to achieve profitability, and penalties upon exit. - FY2017First statedAnnual report
「When opening new stores, the Group determines whether to proceed after considering location, lease terms and store profitability, among other factors. If it cannot find properties meeting the Group’s desired conditions, this may affect the Group’s business results. XEX group stores are also large in floor area, and if they fail to generate the earnings assumed by the Company, this may affect its business results. If store operations become difficult for reasons such as the expiry of a lease or store unprofitability, this may affect the Group’s business results.」
The Company identified failure to find properties meeting the required conditions, failure of large XEX stores to achieve profitability, and exit costs and penalties associated with long-term leases as risks in its store-opening policy.