Risk of a sharp drop in demand and store closures due to COVID-19
First written in FY2020. 5 of 13 entries say "Mitigated", first in FY2023-Q2. Latest entry: FY2024-Q3.
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
33 other companies' latest entry also says "Mitigated".
- FY2024-Q3MitigatedAnnual report
「At domestic department stores, visitor numbers increased, particularly at stores in the Tokyo metropolitan area, due to increased demand for outings following COVID’s reclassification as a Category V infectious disease, as well as increases in domestic travelers and visitors to Japan, resulting in higher revenue and profit.」
Regarding the impact of COVID-related sharp declines in demand and store closures, visitor numbers increased against a backdrop of COVID’s reclassification as a Category V infectious disease and increases in demand for outings and travelers, resulting in higher revenue and profit at domestic department stores. - FY2024-Q2MitigatedAnnual report
「At domestic department stores, visitor numbers increased, particularly at stores in the Tokyo metropolitan area, due to increased demand for outings following COVID’s reclassification as a Category V infectious disease, as well as increases in domestic travelers and visitors to Japan, resulting in higher revenue and profit.」
The impact of COVID-related sharp declines in demand and store closures improved to the point that visitor numbers increased against a backdrop of COVID’s reclassification as a Category V infectious disease and increases in demand for outings and travelers, resulting in higher revenue and profit at domestic department stores. - FY2024-Q1MitigatedAnnual report
「At domestic department stores, visitor numbers increased, particularly at stores in the Tokyo metropolitan area, due to increased demand for outings following COVID’s reclassification as a Category V infectious disease, as well as increases in domestic travelers and visitors to Japan, resulting in higher revenue and profit.」
Regarding the sharp decline in demand and store closure risk caused by COVID, visitor numbers increased against a backdrop of COVID’s reclassification as a Category V infectious disease, stronger demand for outings and increases in domestic travelers and visitors to Japan, resulting in higher revenue and profit at domestic department stores. - FY2023-Q3MitigatedAnnual report
「At domestic department stores, personal consumption remained firm after activity restrictions were lifted. In terms of revenue, stores in the Tokyo metropolitan area as a whole recovered to pre-COVID levels, while the nationwide total recovered to a level close to pre-COVID levels.」
After activity restrictions were lifted, personal consumption and revenue at domestic department stores recovered, reaching pre-COVID levels at stores in the Tokyo metropolitan area and a level close to that nationwide. - FY2023-Q2MitigatedAnnual report
「During the six months ended 30 September 2022 (1 April 2022 to 30 September 2022), the domestic economy remained on a recovery trend as social and economic activity normalized following the lifting of restrictions on activity related to COVID-19 (hereinafter, “COVID”).」
The company stated that conditions involving COVID-related demand and operating restrictions improved following the lifting of activity restrictions and the normalization of social and economic activity. - FY2022WorsenedAnnual report
「Since fiscal 2020, the outbreak of COVID-19 has led to amendments to the special measures law for preventing the spread of infections and the implementation of related measures, while repeated restrictions on the movement of people in major economic activity areas and 4 states of emergency were declared by the government. In response to the emergence of variants and infection conditions, extensions of the lifting of restrictions and measures to prevent the spread of disease were implemented by local governments.」
The company outlined factors contributing to the prolonged infection risk, including 4 states of emergency, virus variants, extensions of restrictions and measures to prevent the spread of disease. - FY2022-Q2RestatedAnnual report
「From July, several stores remained under a state of emergency for an extended period. From mid-August, the effects of measures such as partial closures and admission restrictions in food halls and other areas also contributed to sluggish visitor numbers and sales.」
Visitor numbers and sales remained sluggish due to the renewed spread of infections, the state of emergency, partial closures and admission restrictions. - FY2022-Q1WorsenedAnnual report
「A third state of emergency was declared at the end of April, and domestic personal consumption remained sluggish as the consumption environment and consumer sentiment deteriorated due to strengthened requests for people to refrain from going out. As infections repeatedly increased in localized areas, a fourth state of emergency was decided as early as July. The outlook remains difficult to assess, and it is expected to take time to remove restrictions on economic activity.」
The renewed spread of infections and the third and fourth states of emergency have heightened concerns over prolonged effects on demand and consumer sentiment, as well as extended operating restrictions. - FY2021WorsenedAnnual report
「COVID-19, which continues to rage around the world, has yet to show a clear path to containment due to the emergence of variants and other factors. With additional states of emergency declared, the department store industry remains on a downward trend and continues to face unprecedentedly difficult conditions.」
The company explicitly identified factors that could prolong the impact of infection risk, including virus variants, uncertainty over when the pandemic will be contained and the continuation of states of emergency. - FY2021-Q3WorsenedAnnual report
「However, the number of visitors began to decline again as infections spread once more toward the end of the year, and difficult conditions continue.」
The renewed spread of infections caused visitor numbers, which had been recovering, to decline again, prolonging the impact on demand at stores. - FY2021-Q2RestatedAnnual report
「Under these circumstances, placing the safety and security of customers and employees first, the group was forced to temporarily suspend operations, including at its department stores and other businesses, during the state of emergency.」
The impact of COVID-19-related voluntary suspension of operations and store closures continued into the second quarter. - FY2021-Q1MaterialisedAnnual report
「In response to requests to refrain from going out during the state of emergency, and placing the safety and security of customers and employees first, the group’s stores temporarily closed from April, with some stores partially closed or operating shorter hours.」
The sharp decline in demand and store closure risk caused by COVID-19 materialized as temporary closures, partial closures and shorter operating hours across the group’s stores. - FY2020First statedAnnual report
「During the state of emergency, after considering the infection risk to customers visiting stores and employees, as well as the need to secure sales and other revenue to maintain and continue operations, the group considered business continuity based on its business continuity plan and suspended operations, including closing its department stores in the Tokyo metropolitan area for 52 days.」
The decline in visitors and demand, voluntary suspension of operations and store closures caused by COVID-19 were specifically disclosed as group-wide risks separate from the conventional demand risks.