Sluggish Real Wage Growth and Uncertainty over Consumer Sentiment
First written in FY2017-Q1. 14 of 29 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2027-H1.
United Super Markets Holdings moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2020: 10 of 14 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2027-H1ReframedAnnual report
「As a result, consumers have become increasingly focused on protecting their household budgets, and price-sensitive purchasing behavior, particularly for food, has continued and is expected to continue for the time being.」
While real wages were said to be improving, the consumer environment was characterized by an increasing focus on protecting household budgets and the continuation of price-sensitive purchasing behavior, particularly for food. - FY2026WorsenedAnnual report
「In particular, rising food and energy prices placed pressure on household finances, and the tendency to restrain consumption became pronounced.」
Concerns about the consumption environment were described as pressure on household finances from rising food and energy prices and a pronounced tendency to restrain consumption. - FY2026-H1WorsenedAnnual report
「During the interim consolidated accounting period, employment and income conditions improved, but prices continued to rise faster than these improvements. Real wages remained negative for 7 consecutive months through July, and inflation affected the decline in consumer sentiment. In particular, rising food and energy prices placed pressure on household finances, and a pronounced tendency to restrain consumption emerged.」
It was stated that real wages had been negative for 7 consecutive months, while pressure on household finances from rising food and energy prices and the tendency to restrain consumption had become pronounced. - FY2025WorsenedAnnual report
「Even in the Tokyo metropolitan area, where various functions are concentrated and population decline is said to be relatively moderate, the economic disparity between aging rural areas and urban areas is widening. For the Company, which operates many stores in these areas, achieving a better balance between low prices and high quality is becoming increasingly important. It is also required to quickly develop stores and product assortments suited to each region while recognizing that market conditions differ by area.」
The description of the consumption environment became more specific, covering not only consumers’ desire to protect their livelihoods amid inflation, but also the widening economic disparity between aging rural areas and urban areas and differences in market conditions by region. - FY2025-H1WorsenedAnnual report
「During the interim consolidated accounting period, prices for food, the Company’s core product category, continued to rise overall. Household spending, except on prepared foods and dining out, remained below the rate of price increases, making consumers’ heightened desire to protect their livelihoods even more pronounced. In addition, rising inflation-related costs have become a serious problem in aging rural areas, and the economic disparity with urban areas appears to be widening.」
It was indicated that, amid inflation, consumers’ desire to protect their livelihoods had become more pronounced and the economic disparity between rural and urban areas had widened. The previous recognition of polarization in the consumption environment was given more concrete form, accompanied by regional disparities. - FY2025-Q1ReframedAnnual report
「During the first quarter of the consolidated fiscal year, the consumer market became increasingly polarized. Both products reflecting consumers’ desire to protect their livelihoods amid ongoing inflation and products emphasizing added value through preferences and functionality performed solidly.」
The risk in the consumption environment was restated, shifting from a focus on cooling consumer sentiment due to inflation to a polarization of consumption in which both value-oriented products and products offering added value performed solidly. - FY2024-Q3WorsenedAnnual report
「Against a backdrop of soaring energy prices, higher raw material procurement costs resulting from the weaker yen, and higher labor costs due to the persistently high job-offers-to-applicants ratio, continued price increases for food and household-related products made consumers’ preference for thrift more pronounced.」
The previously noted concerns about consumer sentiment were reflected in continued product price increases and a further strengthening of consumers’ preference for thrift. - FY2024-Q2WorsenedAnnual report
「Customers’ lifestyles and values are becoming increasingly diverse. In addition to placing greater emphasis than ever on reducing the burden on household finances, the Company is required to develop products and services that meet customers’ diverse preferences.」
In addition to the increased burden on household finances, lifestyles and values became more diverse, creating a need for greater support for households and enhanced product and service offerings than before. - FY2024-Q1RestatedAnnual report
「During the first quarter of the consolidated fiscal year, the operating environment appeared to be rapidly returning to pre-pandemic conditions as restrictions on activities related to COVID-19 were eased and social and economic activity resumed. At the same time, inflation continued to intensify, including rising energy costs and prices for goods and services, and consumer sentiment remained subdued.」
It was recognized that the burden on households from inflation and the lack of improvement in consumer sentiment continued. - FY2023WorsenedAnnual report
「During the period, imported resources and raw materials soared in price due to global supply chain disruptions and foreign exchange fluctuations. This rapidly developed into inflation that pushed up energy costs, including electricity charges, and the prices of many necessities, including food, resulting in a significant cooling of consumer sentiment.」
The description of risks in the consumption environment was updated from a focus on stagnant real wage growth to rising prices for necessities due to inflation and a significant cooling of consumer sentiment. - FY2023-Q3RestatedAnnual report
「Higher raw material and other prices resulting from the prolonged situation in Ukraine and the weaker yen, together with surging energy costs including electricity and gasoline prices, directly affected household finances and impacted overall consumer sentiment,」
The recognition that higher energy and other costs were placing pressure on household finances and affecting consumer sentiment continued. - FY2023-Q2WorsenedAnnual report
「The prolonged situation in Ukraine, the weaker yen and other factors caused imported raw material prices to soar and energy costs to rise, directly affecting household finances, widening disparities and further heightening consumers’ already cautious spending attitudes, beginning to weigh on consumer sentiment,」
Regarding the consumption environment, it was stated that higher imported raw material prices and energy costs were placing pressure on household finances and making consumers’ spending attitudes increasingly cautious. - FY2023-Q1WorsenedAnnual report
「The business environment surrounding the Group remained difficult, as consumer sentiment had begun to deteriorate again and continued to cast a shadow over its recovery.」
Regarding the consumption environment, it was indicated that, while the impact of the infectious disease had subsided and social activity was moving toward normalization, higher procurement prices and energy costs were hindering the recovery of consumer sentiment. - FY2022WorsenedAnnual report
「Successive price increases for food resulting from soaring crude oil prices and higher raw material prices, together with the anticipated future impact of changes in international conditions and foreign exchange, are expected to cause significant changes in household spending, raising concerns that consumer sentiment will deteriorate further,」
Regarding the consumption environment, concerns were expressed that consumer sentiment would deteriorate further against a backdrop of food price increases and the impact of international conditions and foreign exchange. - FY2022-Q1WorsenedAnnual report
「However, the reissuance of a state of emergency and the implementation of priority preventive measures to prevent the spread of COVID-19 gradually began to cause deterioration in employment conditions and sluggish personal consumption, and conditions are expected to become increasingly difficult.」
Regarding risks in the consumption environment, deterioration in employment conditions and sluggish personal consumption had begun to emerge gradually, and an outlook for further deterioration was presented. - FY2021ReframedAnnual report
「In the supermarket industry, the establishment of new lifestyles, including changes in working styles and consumer behavior triggered by the COVID-19 pandemic, led to a reassessment of eating at home, while necessities, particularly food, remained firm.」
The consumption-environment theme was restated, shifting from stagnant real wage growth and food expenditure to changes in working styles and consumer behavior caused by the COVID-19 pandemic and the establishment of eating at home. - FY2021-Q2ReframedAnnual report
「The spread of COVID-19 led to restrictions on nonessential outings, entry restrictions on foreign visitors to Japan, the spread of infections overseas and lockdowns in cities, seriously affecting the performance of domestic companies. In addition, changes in working styles, such as working from home and staggered working hours, led to a reassessment of eating at home and brought significant changes in consumer sentiment and behavior.」
Concerns about the consumption environment were described not only as stagnant real wage growth and food expenditure, but also as significant changes in consumer sentiment and behavior resulting from the infectious disease and new working styles. - FY2021-Q1MaterialisedAnnual report
「During the cumulative first quarter of the current consolidated fiscal period, Japan’s economy faced a situation in which its outlook could not be taken for granted, as the global spread of COVID-19 significantly restricted corporate and economic activity, further heightening concerns about an economic slowdown through deteriorating employment conditions and weaker personal consumption.」
Regarding the previously identified risks in the consumption environment, a decline in personal consumption and deterioration in employment conditions were described as actual economic conditions. - FY2020-Q3MaterialisedAnnual report
「During the first 3 quarters of the consolidated fiscal year, the Japanese economy maintained moderate growth, but conditions became increasingly difficult, partly due to the consumption tax increase from October. Employment conditions remained favorable, while real wage growth was sluggish. Consumption expenditures increased before the tax increase but declined in October. Although food expenditure in the Family Income and Expenditure Survey increased, spending on fresh food remained weak.」
Consumption expenditures turned downward in October following the consumption tax increase, while stagnant real wage growth and weak spending on fresh food were described as actual conditions in the consumption environment. - FY2020-Q2MitigatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal period, Japan’s economy slowed, although personal consumption remained firm against the backdrop of favorable employment conditions, partly due to the impact of trade policies in various countries.」
In contrast to the previously described weakness in the consumption environment, personal consumption was described as firm against a backdrop of favorable employment conditions. At the same time, slowing economic growth was also cited. - FY2019ReframedAnnual report
「Although employment conditions were favorable and real wages increased moderately, food expenditure failed to grow, creating a difficult environment for supermarkets.」
While real wages increased moderately, food expenditure failed to grow, and the weakness of the consumption environment was restated as a difficult environment for supermarkets. - FY2019-Q3MitigatedAnnual report
「Employment conditions remained favorable, with increases in the number of employed people and real employment income, while food expenditure within household consumption also increased.」
In contrast to the previously described weakness in the consumption environment, growth in real employment income and food expenditure was described. At the same time, the environment for supermarkets was considered difficult due to rising wages, challenges in recruiting staff and unusually warm winter weather. - FY2019-Q1RestatedAnnual report
「Although employment conditions continued to improve, real wages remained sluggish, and food expenditure in household consumption was weak.」
Stagnant real wage growth and weak food expenditure continued to be identified. - FY2018-Q3RestatedAnnual report
「Although employment conditions continued to improve, food expenditure in household consumption remained sluggish, and the operating environment for supermarkets continued to be difficult.」
Sluggish food expenditure and the difficult operating environment for supermarkets continued. - FY2018-Q2WorsenedAnnual report
「Meanwhile, food expenditure by households failed to grow, and conditions for supermarket operations were difficult, with low temperatures and rainfall continuing in August.」
In addition to sluggish food expenditure, low temperatures and rainfall continued, further highlighting the difficult operating environment for supermarkets. - FY2018-Q1MaterialisedAnnual report
「Meanwhile, although employment conditions remained favorable, the environment surrounding management became increasingly difficult, as household consumption expenditures declined and other factors emerged.」
Regarding weakness in consumer sentiment and personal consumption, an actual change in the environment, namely a decline in household consumption expenditures, was described. - FY2017-Q3WorsenedAnnual report
「Meanwhile, although personal consumption remained relatively resilient, uncertainty increased due to stagnant real wage growth and factors including the impact of crude oil prices, which had begun to rise.」
It was stated that, while personal consumption remained resilient, the impact of rising crude oil prices had been added to stagnant real wage growth, increasing uncertainty. - FY2017-Q2WorsenedAnnual report
「Although employment conditions continued to improve, partly due to labor shortages, personal consumption remained stagnant amid sluggish growth in disposable income and other factors.」
The description became more specific and weaker, changing from “consumer sentiment is uncertain” to “personal consumption is stagnant” due to sluggish growth in disposable income. - FY2017-Q1First statedAnnual report
「Personal consumption also remained uncertain, as improvements in employment conditions continued but stagnant real wage growth and other factors weighed on consumer sentiment.」
While employment conditions improved, real wages and consumer sentiment were identified as concerns affecting the retail environment.