Difficult retail conditions due to a mild winter, consumers' preference for frugality and intensifying competition across business formats
First written in FY2016-Q3. 16 of 35 entries say "Worsened", first in FY2016. Latest entry: FY2026.
Tea Life moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2018: 16 of 40 companies on the "Worse" side.
23 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In the wholesale and retail industries, consumers continued to favor economizing due to prolonged inflation, and consumer sentiment has yet to recover fully, leaving the business environment uncertain.」
The difficult wholesale and retail environment continues due to rising prices, consumers' propensity to save and the delayed recovery in consumer sentiment. - FY2026-H1RestatedAnnual report
「In the wholesale and retail industries, the outlook remained uncertain as the recovery in real wages was slow amid prolonged inflation, consumers' preference for frugality continued, and a full-scale recovery in personal consumption would take time.」
It continues to describe a difficult retail and wholesale environment due to rising prices, the slow recovery in real wages, consumers' propensity to save and the delayed recovery in personal consumption. - FY2025WorsenedAnnual report
「In the retail and wholesale industries, consumption is expected to recover along with the economy, but flexible responses are required to issues including higher raw material, labor and logistics costs, difficulty passing these costs on to prices as consumers increasingly focus on protecting their household finances, and intensifying competition as consumers shift to e-commerce.」
It continues to specifically describe higher raw material, labor and logistics costs, difficulty passing costs on to prices, and intensified competition resulting from the shift to e-commerce as challenges in the industry environment. - FY2025-H1WorsenedAnnual report
「In the wholesale and retail industries, the outlook remained uncertain as inflation caused by soaring energy and raw material prices continued, raising concerns that consumers' increased preference for frugality would slow personal consumption.」
Against the backdrop of rising prices caused by surging energy and raw material costs and consumers' propensity to save, concerns about a slowdown in personal consumption have emerged, and the difficult retail and wholesale environment continues. - FY2024WorsenedAnnual report
「In the retail and wholesale industries, consumption is expected to recover along with the economy, but cost-push inflation caused by higher delivery charges, labor costs and raw material prices is expected to continue. Measures to improve profitability, including strengthening branding and reducing costs, are urgently needed.」
While indicating expectations for a recovery in consumption, it anticipates continued cost-push inflation due to higher delivery charges, labor costs and raw material prices. - FY2024-Q3RestatedAnnual report
「In the retail and wholesale industries, store performance showed signs of recovery as foot traffic recovered. However, the outlook remained uncertain due to inflation caused by persistently high energy and raw material prices.」
It reaffirms the coexistence of a recovery trend in store performance as the flow of people returns, and rising prices caused by surging energy and raw material costs together with an uncertain outlook. - FY2024-Q2Recovery in brick-and-mortar stores alongside declining demand for home useAnnual report
「In the retail and wholesale industries, store performance showed signs of recovery as foot traffic recovered. However, the outlook remained uncertain due to the declining trend in stay-at-home demand and inflation caused by persistently high energy and raw material prices.」
While store performance is showing signs of recovery as the flow of people returns, declining demand for home use and rising prices caused by surging energy and raw material costs are indicated as new factors contributing to a difficult environment. - FY2024-Q1RestatedAnnual report
「In the retail and wholesale industries, foot traffic recovered as restrictions were eased. However, the outlook remained uncertain due to concerns over inflation caused by soaring energy and raw material prices, as well as sharp foreign exchange fluctuations.」
While the flow of people is recovering, it continues to describe a difficult business environment due to surging energy and raw material prices, sharp exchange-rate fluctuations and concerns about rising prices. - FY2023-Q3RestatedAnnual report
「In the retail and wholesale industries, the burden of living expenses has increased due to higher utility costs and price increases for products resulting from higher raw material prices. Although strong cost-cutting sentiment has persisted, signs of a gradual recovery have emerged as efforts to balance infection prevention with social and economic activity have progressed.」
It continues to describe higher utility and raw material costs and a strong propensity to save as factors contributing to a difficult environment, while also indicating a gradual recovery as socioeconomic activity rebounds. - FY2023-Q2SoftenedAnnual report
「Although consumers remain increasingly focused on protecting their household finances against rising prices, business remained on a recovery trend as demand for going out increased following the easing of restrictions on activities.」
It states that, although consumers remain focused on protecting their household finances against rising prices, the retail and wholesale industries shifted to a recovery trend as restrictions on activities were eased and demand for going out increased. - FY2023-Q1SoftenedAnnual report
「In the wholesale and retail industries, personal consumption is expected to recover gradually as restrictions on activities are lifted.」
It describes a recovery trend in personal consumption following the lifting of restrictions on activities, representing a partial easing from the previous descriptions of a difficult retail and wholesale environment. - FY2022WorsenedAnnual report
「In the retail and wholesale industries, although the normalization of the COVID-19 boom in previously strong e-commerce sales has become apparent, new forms of consumption stimulus, such as revenge spending, are expected to determine winners and losers, and competition for survival is expected to intensify as the number of market participants increases.」
It states that competition for survival in the industry is expected to intensify further against the backdrop of the reversal of the e-commerce boom and the increasing number of market entrants. - FY2022-Q3WorsenedAnnual report
「In the retail and wholesale industries, signs of a recovery were seen as the number of infections declined and when quasi-emergency measures were lifted. However, business remained weak as consumers increasingly focused on protecting their household finances against price increases caused by higher crude oil and food raw material costs.」
While there were signs of a recovery as the number of infections declined and measures were lifted, the industry remained weak due to concerns about price increases caused by higher crude oil and food raw material costs, as well as consumers' growing focus on protecting their household finances. - FY2022-Q2WorsenedAnnual report
「In the retail and wholesale industries, revenge spending and catch-up production were seen as the number of infections declined, but business remained weaker than expected due to, among other factors, consumers' growing focus on protecting their household finances against price increases caused by higher crude oil and other resource prices and labor shortages.」
It states that, in addition to the previous factors of infectious diseases, competition and labor shortages, higher resource prices, rising prices and consumers' growing focus on protecting their household finances caused the retail and wholesale industries to perform below expectations. - FY2022-Q1WorsenedAnnual report
「In the retail and wholesale industries, the recovery in personal consumption is expected to take some time as bankruptcies caused by the impact of COVID-19 and worsening employment and income conditions due to unemployment continue, and conditions remain difficult. In the mail-order industry, the user base expanded mainly in the e-commerce market against the backdrop of restrictions on going out during the COVID-19 pandemic, and the industry remained on a growth trajectory. However, intensified competition as more companies entered the market and a decline following the lifting of restrictions on going out after the recent containment of infections have become apparent.」
It describes worsening employment and income conditions due to bankruptcies and unemployment, delays in the recovery of personal consumption, and a decline following the lifting of restrictions on going out as new factors contributing to a difficult business environment. Competition in e-commerce has also intensified as more companies have entered the market. - FY2021-Q3RestatedAnnual report
「In the retail and wholesale industries, changes in consumer behavior brought about by new lifestyles during the COVID-19 pandemic have kept at-home channels such as mail-order sales and television shopping strong. Meanwhile, store-based sales remained extremely challenging, with results varying significantly by business format and product category due to the impact of shorter operating hours and restrictions on going out. In the mail-order industry, performance remained strong, mainly in e-commerce, against a backdrop of increased demand for stay-at-home consumption, but competition with other companies is showing signs of intensifying due to the increase in market entrants and other factors.」
It reaffirms the difficult retail environment through the previous quarter: mail-order sales and other channels available for home use have been strong, while brick-and-mortar retail has been affected by reduced operating hours and calls to refrain from going out, and competition in e-commerce has continued to intensify as more companies enter the market. - FY2021-Q2WorsenedAnnual report
「In the retail and wholesale industries, changes in consumer behavior brought about by new lifestyles during the COVID-19 pandemic have kept at-home channels such as mail-order sales and television shopping strong. Meanwhile, store-based sales remained extremely challenging, with results varying significantly by business format and product category due to the impact of shorter operating hours and restrictions on going out. In the mail-order industry, performance remained strong, mainly in e-commerce, against a backdrop of increased demand for stay-at-home consumption, but competition with other companies is showing signs of intensifying due to the increase in market entrants and other factors.」
While mail-order sales and other channels available for home use have been strong, brick-and-mortar retail has been extremely difficult due to reduced operating hours and calls to refrain from going out, and competition in e-commerce has intensified as more companies have entered the market. - FY2021-Q1WorsenedAnnual report
「In the retail and wholesale industries, the change in consumer behavior brought about by new lifestyles during the COVID-19 pandemic, including restrictions on going out and changes in working patterns, expanded the use of mail-order sales and TV shopping. Meanwhile, store-based sales diverged significantly depending on the products, and conditions remained extremely challenging. In the mail-order industry, the market continued to expand, mainly around e-commerce, in response to increased stay-at-home consumption, but intensifying competition became evident due to the increase in market entrants and other factors.」
It states that, in addition to the difficult conditions in brick-and-mortar retail, competition has intensified in the mail-order and e-commerce markets as more companies enter. - FY2020RestatedAnnual report
「The retail and wholesale sectors continued to face difficult business conditions due to a series of natural disasters, lower consumer sentiment following the consumption tax increase, and a growing reluctance to go out associated with the spread of COVID-19.」
In addition to the difficult conditions caused by the consumption tax increase and natural disasters, the note continues to cite the reluctance to go out associated with COVID-19 as a factor affecting the business environment. - FY2020-Q3MaterialisedAnnual report
「In the retail and wholesale industries, the operating environment remained challenging due to the impact of the consumption tax increase, a decline in inbound demand and voluntary closures of retail stores.」
In addition to the previously noted consumption tax increase and the effects of the mild winter, a decline in inbound demand and the suspension of retail store operations have emerged as actual difficult business conditions. - FY2020-Q2MaterialisedAnnual report
「The retail and wholesale sectors continued to face difficult conditions due to the consumption tax increase and the effects of the mild winter.」
In addition to the previously anticipated effects of the consumption tax increase, the effects of the mild winter have actually emerged as difficult conditions in the retail and wholesale sectors. - FY2020-Q1MaterialisedAnnual report
「Although there was temporary front-loaded demand following the consumption tax rate increase, difficult conditions continued due to the subsequent decline in demand, reduced purchases resulting from consumers' increasing preference for frugality, and the effects of damage from repeated typhoons, heavy rain and other natural disasters.」
The previously anticipated stagnation in consumer sentiment due to the consumption tax increase and the effects of natural disasters have actually emerged in the business environment as a decline in demand, reduced purchases and damage. - FY2019WorsenedAnnual report
「Higher labor costs due to worsening labor shortages and further increases in raw material prices and other cost increases are expected, while concerns remain over the impact of stagnant consumer sentiment resulting from the consumption tax increase introduced in October 2019.」
In addition to labor shortages, higher labor and logistics costs and higher raw material prices, the note cites stagnation in consumer sentiment due to the consumption tax increase as a new concern. - FY2019-Q3WorsenedAnnual report
「In the retail and wholesale industries, conditions remained challenging as rising labor and logistics costs, soaring raw material prices and the resulting pass-through of costs to prices weighed on consumer sentiment.」
In addition to higher labor and logistics costs, the note specifies higher raw material prices and weaker consumer sentiment resulting from the pass-through of higher costs as factors contributing to difficult business conditions. - FY2019-Q2RestatedAnnual report
「Although the retail and wholesale sectors continued to face difficult conditions due to higher labor costs caused by labor shortages and higher logistics costs,」
The note continues to cite difficult conditions in the retail and wholesale sectors due to labor shortages, higher labor costs and higher logistics costs. - FY2019-Q1WorsenedAnnual report
「Although the retail and wholesale sectors continued to face difficult conditions due to higher labor costs and logistics costs caused by labor shortages, as well as the effects of natural disasters such as torrential rain,」
In addition to the previously noted increases in labor and logistics costs, the note explicitly identifies the effects of natural disasters such as torrential rain as factors contributing to difficult business conditions. The effects of natural disasters are described as actual business environment factors. - FY2018RestatedAnnual report
「Although the retail and wholesale sectors continued to face difficult business conditions, including intensifying competition between companies and rising labor and logistics costs due to labor shortages,」
The note continues to cite difficult business conditions caused by competition between companies, labor shortages and higher labor and logistics costs. - FY2018-Q3MaterialisedAnnual report
「Due to the impact of higher delivery charges by shipping companies, operating profit was ¥223 million, down 27.1%, ordinary profit was ¥236 million, down 35.3%, and quarterly net income attributable to owners of the parent was ¥278 million, down 15.4%.」
Regarding the previously noted risk of higher logistics costs, the note states that higher charges by shipping companies actually pressured profits. - FY2018-Q1WorsenedAnnual report
「Although personal consumption is gradually recovering, the difficult business environment has continued due to the normalization of low-price competition against a backdrop of consumers' persistent preference for frugality, rising labor costs caused by labor shortages and higher logistics costs, among other factors.」
In addition to the previously noted preference for frugality, price competition and labor shortages, the note explicitly identifies higher labor costs and logistics costs as factors contributing to the difficult business environment. - FY2017WorsenedAnnual report
「In recent years, as information and communications infrastructure has improved and information devices such as smartphones have become widespread, new entrants into the mail-order business have emerged one after another, particularly in online retail, ranging from major companies to sole proprietors.」
In addition to the previously noted preference for frugality, price competition and labor shortages, the note specifies the entry of new online retailers ranging from major companies to sole proprietors as a factor intensifying competition. - FY2017-Q3RestatedAnnual report
「Although an improvement in consumer sentiment is expected as the economy recovers, the business environment remained difficult due to intensifying price competition driven by a persistent preference for frugality and chronic labor shortages, among other factors.」
The note continues to cite difficult conditions in the retail and wholesale sectors due to intensifying price competition against a backdrop of frugality and chronic labor shortages. - FY2017-Q2WorsenedAnnual report
「Although an improvement in consumer sentiment is expected as the economy recovers, the business environment remained difficult due to intensifying price competition driven by a persistent preference for frugality and chronic labor shortages, among other factors.」
In addition to the previously noted preference for frugality and intensifying competition, intensifying price competition and chronic labor shortages are explicitly cited, broadening the factors contributing to difficult conditions in the retail and wholesale sectors. - FY2017-Q1RestatedAnnual report
「The difficult business environment has continued amid sluggish personal consumption, a persistent preference for frugality and intensifying competition across industries and business formats.」
The difficult environment caused by sluggish personal consumption, a preference for frugality and intensifying competition across industries and business formats continues. - FY2016WorsenedAnnual report
「Since this spring, the operating environment has remained challenging, owing to the slowdown in inbound consumption, consumers' persistent preference for frugality and intensifying competition across business formats, among other factors.」
In addition to the previously noted preference for frugality and intensifying competition, a slowdown in inbound consumption is explicitly cited, broadening the factors contributing to difficult conditions in the retail and wholesale sectors. - FY2016-Q3First statedAnnual report
「The business environment remained challenging, as sales of winter products stagnated because of the warm winter, while consumers remained persistently frugal and competition intensified across business formats.」
The note cites weak sales of winter merchandise due to the mild winter, consumers' preference for frugality and intensifying competition across business formats as ongoing risks.