Risks from Regulatory Changes Affecting Retail, Consumer Protection and Taxation
First written in FY2016. 3 of 6 entries say "Worsened", first in FY2018. Latest entry: FY2020.
J.Front Retailing moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 9 of 23 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2020WorsenedAnnual report
「In recent years in particular, legislative amendments have increased in areas such as work-style reform and personal information, which may impose restrictions or compliance obligations on the Group's business activities. These amendments are expected to continue to have a significant impact on the stable operation and reputation of the Group's businesses.」
Regarding regulatory risk, legislative amendments involving compliance obligations, including work-style reform and personal information, have increased, and the description now emphasizes their significant impact on business operations and reputation. - FY2020-Q3MaterialisedAnnual report
「In the retail industry, sales increased sharply in September, particularly for durable goods and high-priced products, due to rush demand ahead of the consumption tax increase. However, sales fell sharply in October after the tax increase as that demand reversed.」
A decline in sales caused by the reversal following the consumption tax rate increase actually occurred, bringing the tax reform risk to the fore. - FY2019WorsenedAnnual report
「As the Group is expanding its business areas under its multi-service retailer strategy, the laws and regulations it must address are also tending to increase. The already apparent risk related to laws, regulations, and legislative amendments is expected to increase further.」
The number of laws and regulations to be addressed has increased with the expansion of the business areas, and the risk associated with laws, regulations, and legislative amendments is expected to increase further. - FY2018WorsenedAnnual report
「There is a high likelihood that a combination of recessions may occur in the near term, including a consumption recession caused by the 2019 consumption tax increase and a post-Olympics downturn. This could pose a threat unless measures to address such factors as rush demand and a pullback in purchases are established at an early stage.」
Regarding the risk of changes in laws, regulations, and tax systems, the 2019 consumption tax increase was explicitly identified as a consumption recession risk associated with a specific period, and, together with the post-Olympics downturn, it was classified as a significant risk. - FY2017RestatedAnnual report
「In addition, future tax reforms, including increases in consumption tax rates, may lead to a deterioration in personal consumption.」
The risks of restrictions on operations, higher costs, and lower sales due to changes in laws, regulations, and tax systems have been reaffirmed. - FY2016First statedAnnual report
「The Group is subject to laws and regulations governing the opening of large-scale retail stores, antitrust, subcontracting transactions, consumer protection, various tax systems, and environmental and recycling matters, among others.」
This indicates that laws and regulations and future tax reforms may result in restrictions on operations, higher costs, and lower sales.