Changes in Customer Lifestyles Driven by the Declining Birthrate and Aging Population, and Restructuring in the Retail Industry

「During the interim accounting period, Japan's economy showed signs of recovery as economic activity normalized, accompanied by robust consumer spending and expanding inbound demand. However, concerns remain over the impact of higher prices resulting from rising raw material and logistics costs, the slowdown in the Chinese economy, and geopolitical risks related to the situations in Ukraine and the Middle East. The outlook therefore remains uncertain.」

「During the first 2 quarters of the fiscal year, the reclassification of COVID-19 under Category 5 led to increased movement of people and a recovery in personal consumption, while inbound demand also expanded, further accelerating the normalization of economic activity. Meanwhile, the impact of rising prices due to the prolonged depreciation of the yen and surging raw material and energy prices remained significant, and the economic environment continued to face an uncertain outlook.」

「During the first quarter of the fiscal year, economic activity toward normalization became increasingly active as COVID-19 was reclassified under the Infectious Diseases Control Law and restrictions on activities were lifted. Meanwhile, the economic environment surrounding the market remains challenging due to the prolonged depreciation of the yen and surging raw material and energy prices, and the outlook remains uncertain.」

「During the first 2 quarters of the fiscal year, companies’ cost burdens increased due to the resurgence of COVID-19, higher raw material prices and increased import costs resulting from yen depreciation, while concerns about sluggish demand persisted. Although measures were announced to substantially ease restrictions on domestic travel support and border controls for inbound visitors, the outlook remains uncertain.」

「During the first quarter of the fiscal year, Japan’s economy was significantly affected by the sharp increase in new COVID-19 cases associated with the seventh wave, rising prices caused by shortages of raw materials and food affected by the prolonged situation in Ukraine, and rapid yen depreciation resulting from U.S. monetary policy and other factors. The outlook therefore remains uncertain.」

「Vaccinations subsequently progressed and there were signs of a return to normal economic activity. However, the prolonged situation in Ukraine drove up crude oil and raw material prices, while the impact of U.S. monetary policy and other factors led to a rapid depreciation of the yen and rising prices. The environment surrounding personal consumption has consequently become more challenging, and uncertainty about the outlook continues.」

「During the first 3 quarters of the fiscal year, Japan’s economy remained in a challenging environment as infections associated with the sixth wave spread rapidly from January at the beginning of the year and priority preventive measures to prevent the spread of COVID-19 were implemented again. In addition, the recovery of the global economy from the COVID-19 pandemic and geopolitical risks associated with the situation in Ukraine began to have a significant impact on global crude oil prices and supply and demand. The resulting substantial price increases for daily necessities have had a very significant impact on people’s lives and corporate activities, and the outlook remains uncertain.」

「Vaccinations subsequently progressed, and on 30 September the state of emergency was lifted in all prefectures, leading to increased activity toward the resumption of economic activity. However, infections caused by a new variant have recently spread rapidly, and higher crude oil prices and other factors have led to product price revisions, with a significant impact on personal consumption. Uncertainty about the outlook therefore continues.」

「In addition to the decline following special demand caused by various factors in the previous fiscal year, the number of COVID-19 cases increased sharply.」

「The future operating environment in the retail industry surrounding the company is expected to be significantly affected by the decline following the special demand generated during the COVID-19 pandemic, deteriorating business sentiment and employment conditions, the establishment of e-commerce use, the spread of telework, heightened health and hygiene awareness, and reduced frequency of dining out. Competition is also intensifying due to industry restructuring among major companies and the entry of businesses from other sectors across traditional industry boundaries, and the operating environment is expected to become even more challenging.」

「Meanwhile, moves toward industry consolidation among major companies have become more apparent, competition including from other business formats has intensified, and the operating environment has changed significantly.」

「The spread of COVID-19 had a significant impact. As people spent more time at home due to calls to refrain from going out and the spread of telework, personal consumption trends and lifestyles changed substantially, while demand for home use increased, particularly for products associated with living with COVID-19.」

「The operating environment surrounding the company includes a declining population and number of households associated with the declining birthrate and aging population, as well as shrinking economic activity due in part to the effects of the COVID-19 pandemic. Personal consumption is therefore expected to decline over the medium to long term.」

「The company has reassessed changes in customer lifestyles in a society with a declining birthrate and aging population, as well as the trend toward business restructuring in the retail industry, as part of its future operating environment.」

「The company has reassessed changes in customer lifestyles in a society with a declining birthrate and aging population, as well as the trend toward business restructuring in the retail industry, as part of its future operating environment.」

「The company has reassessed changes in customer lifestyles in a society with a declining birthrate and aging population, as well as the trend toward business restructuring in the retail industry, as part of its future operating environment.」