Risk of Lower Profitability from Store Investments and Closure Costs
First written in FY2016. 15 of 19 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2026.
Alpen moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2018: 7 of 33 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Total capital investment, including security deposits and other items, during the consolidated fiscal year was ¥11,412 million, comprising 11 stores in total: 7 sports-format stores, 3 golf-format stores and 1 other store.」
The Group recorded total capital investment of ¥11,412 million, including the opening of 11 stores. Although the cost burden associated with new store openings and renovations of existing stores continued, operating income exceeded the previous year’s level. - FY2026-H1MaterialisedAnnual report
「On the cost side, the ratio of SG&A expenses to net sales rose from the previous year due to higher expenses across various categories, particularly personnel costs, as well as the cost burden associated with opening a cumulative total of 8 new stores and renovating existing stores.」
In addition to higher personnel and other costs, expenses associated with opening a cumulative total of 8 new stores and renovating existing stores were incurred, causing the ratio of SG&A expenses to net sales to rise from the previous year. - FY2025-H1MaterialisedAnnual report
「Although selling, general and administrative expenses have been trending upward due to the increase in the number of stores and higher personnel, logistics and other costs, the Group implemented strict cost controls in line with sales trends and improved the ratio of SG&A expenses to net sales.」
Selling, general and administrative expenses have been trending upward due to the increase in the number of stores and higher personnel, logistics and other costs, resulting in an actual increase in the cost burden associated with new store openings and store operations. Meanwhile, the ratio of SG&A expenses to net sales improved. - FY2024MaterialisedAnnual report
「Selling, general and administrative expenses increased significantly from the previous year due to investments including the opening of 15 new stores, including flagship stores, the launch of a new warehouse and upgrades to store systems, as well as the impact of recent increases in personnel costs.」
Costs associated with the opening of 15 new stores, a new warehouse, upgrades to store systems, and higher personnel costs were actually incurred, resulting in an increase in selling, general and administrative expenses. - FY2024-Q3MaterialisedAnnual report
「Selling, general and administrative expenses increased from the previous year due to higher personnel and other costs, the opening of 13 stores, including flagship stores, the launch of a new warehouse, and activities such as upgrading store systems.」
The opening of 13 stores, the launch of a new warehouse, upgrades to store systems, and higher personnel and other costs increased the cost burden associated with new store investments, logistics development and systems investment from the previous year. - FY2024-Q2MaterialisedAnnual report
「Selling, general and administrative expenses exceeded the previous year’s level due to higher personnel and other costs, the opening of 7 stores, including flagship stores, and activities such as developing the logistics network and upgrading store systems.」
The opening of 7 stores, development of the logistics network, upgrades to store systems, and higher personnel and other costs increased the cost burden associated with store investments and operations from the previous year. - FY2024-Q1MaterialisedAnnual report
「Selling, general and administrative expenses increased from the previous year due to the opening of 5 stores, including flagship stores, development of logistics facilities, and upgrades to store systems, as well as higher personnel and other costs.」
The opening of 5 stores, development of logistics facilities, upgrades to store systems, and higher personnel and other costs increased the cost burden associated with store investments and operations from the previous year. - FY2023MaterialisedAnnual report
「The ¥3,060 million increase resulting from this change in estimate was added to the asset retirement obligation balance before the change, while ¥990 million in impairment losses on the related property, plant and equipment was recognised as an extraordinary loss.」
A change in the estimated costs of restoring stores to their original condition upon vacating increased asset retirement obligations by ¥3,060 million, and ¥990 million in impairment losses was recognised on the related property, plant and equipment. - FY2023-Q3RestatedAnnual report
「Selling, general and administrative expenses exceeded the previous year’s level, reflecting higher expenses for stores opened in the previous fiscal year and rising costs across various categories, particularly utilities.」
Higher expenses for stores opened in the previous fiscal year and rising utility and other costs have continued to increase the cost burden associated with new store openings and store operations. - FY2023-Q2RestatedAnnual report
「Selling, general and administrative expenses exceeded the previous year’s level, reflecting higher expenses for stores opened in the previous fiscal year and rising costs across various categories, particularly utilities.」
Higher expenses for stores opened in the previous fiscal year and rising utility and other costs have continued to increase the cost burden associated with new store openings and store operations. - FY2023-Q1MaterialisedAnnual report
「Selling, general and administrative expenses exceeded the previous year’s level, reflecting higher expenses for stores opened in the previous fiscal year and rising costs across various categories, particularly utilities.」
Expenses for stores opened in the previous fiscal year increased, and higher utility and other costs resulted in an actual increase in the cost burden associated with new store investments. - FY2022-Q3MaterialisedAnnual report
「Losses on store closures 23」
As part of the reorganisation of its store network, the Group recognised ¥23 million in losses on store closures during the nine-month period of the third quarter of the fiscal year, and costs associated with store openings and closures were incurred. - FY2022-Q2MaterialisedAnnual report
「Losses on store closures 11」
As part of the reorganisation of its store network, the Group recognised ¥11 million in losses on store closures during the six-month period of the second quarter of the fiscal year, and costs associated with store openings and closures continued to be incurred. - FY2021-Q3MaterialisedAnnual report
「Losses on store closures 222」
As part of the reorganisation of its store network, the Group recognised ¥222 million in losses on store closures during the nine-month period of the third quarter of the fiscal year, and costs associated with store openings and closures were actually incurred. - FY2021-Q1MaterialisedAnnual report
「Losses on store closures 199」
As part of the reorganisation of its store network, the Group recognised ¥199 million in losses on store closures during the nine-month period of the first quarter of the fiscal year. - FY2020-Q3MaterialisedAnnual report
「Losses on store closures 170」
As part of the reorganisation of its store network, the Group recognised ¥170 million in losses on store closures during the nine-month period of the third quarter of the fiscal year. - FY2020-Q1MaterialisedAnnual report
「Losses on store closures 65」
As part of the reorganisation of its store network, the Group recognised ¥65 million in losses on store closures in the first quarter, and costs associated with store openings and closures were actually incurred. - FY2017RestatedAnnual report
「Therefore, if the Group is unable to achieve the sales it anticipated due to increased expenses, including pre-opening personnel costs, advertising expenses and depreciation from capital investment associated with new store openings, profitability may decline.」
The risk of lower profitability due to upfront costs associated with new store openings and failure to achieve planned sales, as well as the possibility of losses on asset retirement and contract cancellations when stores are closed, continues to be disclosed. - FY2016First statedAnnual report
「If the Group is unable to achieve the sales it anticipated due to increased expenses, including pre-opening personnel costs, advertising expenses and depreciation from capital investment associated with new store openings, profitability may decline.」
The Group states that it will respond by closing smaller stores, replacing them with more profitable stores, and subleasing the premises of closed stores.