Impact of the Spread of COVID-19 on Stores, Demand and Business Performance
First written in FY2020. 8 of 17 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2025.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2025MitigatedAnnual report
「As the impact of COVID-19 subsided and the lifting of restrictions on activities and the recovery in inbound tourism continued, personal consumption showed signs of a gradual recovery.」
The impact of infectious diseases, centered on restrictions on activities and store closures, shifted to a phase of normalization and recovery in social activity and domestic consumption. Overseas demand risks, including a slowdown in the Chinese economy, remained. - FY2025-Q1Normalization of social activity alongside a slowdown in the Chinese economyAnnual report
「A gradual recovery was seen due to the normalization of social activity, improvements in employment and income conditions, and an increase in inbound tourists. However, …concerns remain about the impact on the economy of slowdowns in the Chinese and European economies.」
While social activity normalized as the impact of infectious diseases, including domestic store closures, eased, uncertainty remained regarding overseas demand, including due to the slowdown in the Chinese economy. - FY2024-Q2Domestic normalization alongside stagnant demand in ChinaAnnual report
「In Japan, consumption began to normalize, and the increase in the movement of people and inbound shoppers led to growth in A+ TOKYO and THE TOKYO. In mainland China, although some recovery was seen after the lifting of the zero-COVID policy, conditions became difficult from April onward due to external factors arising from deteriorating economic conditions, a lack of freshness in the product assortment, and weaker sales capabilities.」
In Japan, consumption moved toward normalization as the impact of infectious diseases eased and the movement of people and inbound visitors increased. In mainland China, however, conditions remained difficult after the lifting of the policy due to economic deterioration, a lack of freshness in the product assortment, and weaker sales capabilities. - FY2024-Q1Domestic normalization alongside the continuing impact of infectious diseases in ChinaAnnual report
「For domestic stores in Japan, the company assumed that the impact of COVID-19 would ease and consumption would normalize, accompanied by the transition to Category V infectious disease status on 8 May 2023, and that sales to visitors from overseas would gradually recover during the fiscal year ending January 2024. In mainland China, based on the lifting of the zero-COVID policy, the company also assumed that sales would recover during the fiscal year ending January 2024, although the impact of COVID-19 would persist to some extent.」
The company assumed a transition to Category V infectious disease status and a recovery in inbound sales in Japan, as well as a recovery in sales in mainland China following the lifting of the zero-COVID policy. At the same time, it assumed that the impact of infectious diseases would persist to some extent. - FY2023Domestic recovery alongside the materialization of the impact of infectious diseases in ChinaAnnual report
「In Japan, a degree of recovery was seen due to vaccination, the easing of travel restrictions, and an increase in inbound visitors as the impact of the spread of COVID-19 subsided. Overseas, however, the Chinese subsidiary was significantly affected by COVID-19 throughout the year, and store visitor numbers declined from the lifting of the zero-COVID policy in December 2022 through early January 2023 due to an explosive increase in infections.」
In Japan, recovery was seen due to the easing of travel restrictions and an increase in inbound visitors. At the Chinese subsidiary, the company described the year-round impact of infectious diseases and a decline in store visitors due to the sharp increase in infections following the lifting of the policy. - FY2023-Q3Domestic recovery alongside the continuing impact of infectious diseases in ChinaAnnual report
「Regarding COVID-19, the zero-COVID policy in mainland China remained in place even after the lifting of large-scale lockdowns in areas including Shanghai, as well as in Japan. The resulting significant stagnation in the movement of people, decline in consumption, and damage to supply chains continued to affect corporate activity.」
While some recovery in economic activity was seen in Japan, stagnation in the movement of people, a decline in consumption, and supply chain disruptions continued in mainland China due to the zero-COVID policy. - FY2023-Q2Continuing impact of infectious diseases alongside avoidance of domestic store closuresAnnual report
「In Japan, the company had been recovering from the impact of the spread of COVID-19, but the number of infected people rose again due to the impact of the seventh wave caused by the Omicron variant. However, compared with the previous year, the impact of the declaration of a state of emergency and priority preventive measures had eased.」「No domestic physical stores were temporarily closed during the first 2 quarters of the current fiscal year due to the impact of COVID-19.」
Although the increase in infections caused by the seventh wave and its impact on demand continued, the impact of restrictions on activities had eased compared with the previous year, and no domestic physical stores were temporarily closed. - FY2023-Q1Continuing impact of infectious diseases alongside recovery in domestic storesAnnual report
「In Japan, the company had been recovering from the impact of the spread of COVID-19, but the Omicron variant again reduced store visitor numbers as people refrained from going out. However, compared with the previous year, the impact of the declaration of a state of emergency and priority preventive measures had eased.」
Although the decline in store visitors due to infectious diseases continued, the impact of the declaration of a state of emergency and other measures had eased compared with the previous year, and the company stated that domestic operations were recovering. - FY2022MaterialisedAnnual report
「Although the company continued to be affected by shortened operating hours and temporary closures due to the spread of COVID-19, fewer store visitors due to requests to refrain from going out, and a significant decline in inbound visitors, physical stores are showing signs of recovery due to a gradual recovery in purchasing appetite and lower temperatures.」
The impact of infectious diseases on stores, store visitors, and inbound visitors continued, but physical stores began to recover due to the recovery in purchasing appetite and other factors. - FY2022-Q3MaterialisedAnnual report
「Although the company continued to be affected by shortened operating hours due to the spread of COVID-19, fewer store visitors due to requests to refrain from going out, and a significant decline in inbound visitors, physical-store sales increased substantially, by 60.6% year on year, because the temporary closure period and the affected areas were less extensive than in the previous year.」
The impact of infectious diseases continued in the form of shortened operating hours and declines in store visitors and inbound visitors, while physical-store sales increased 60.6% year on year due to the shorter closure period and smaller affected areas. - FY2022-Q2MaterialisedAnnual report
「Although the company continued to be affected by shortened operating hours and temporary closures due to the spread of COVID-19, fewer store visitors due to requests to refrain from going out, and a significant decline in inbound visitors, physical-store sales increased substantially, by 96.7% year on year, because the temporary closure period and the affected areas were less extensive than in the previous year.」
The impact of infectious diseases continued in the form of shortened operating hours, temporary closures, and declines in store visitors and inbound visitors. However, because the closure period and affected areas were less extensive than in the previous year, physical-store sales increased 96.7% year on year. - FY2022-Q1MaterialisedAnnual report
「Although the company continued to be affected by shortened operating hours and temporary closures due to the spread of COVID-19, fewer store visitors due to requests to refrain from going out, and a significant decline in inbound visitors, physical-store sales increased substantially, by 182.1% year on year, because the temporary closure period and the affected areas were less extensive than in the previous year.」
The impact of infectious diseases continued in the form of shortened operating hours, temporary closures, and declines in store visitors and inbound visitors. However, because the closure period and affected areas were less extensive than in the previous year, physical-store sales increased 182.1% year on year. - FY2021MaterialisedAnnual report
「These risks materialized during the current fiscal year and had a particularly significant impact on physical stores, including temporary closures and a decline in the number of customers making purchases due to changes in customers’ lifestyles. Same-store physical-store sales declined substantially, by 28.0% year on year, during the current fiscal year.」
The infectious disease risk materialized throughout the fiscal year, and same-store physical-store sales declined 28.0% year on year. The company also listed measures including temporary closures, fewer customers, inventory optimization, and controls on selling, general and administrative expenses. - FY2021-Q3MaterialisedAnnual report
「The company faced an extremely challenging environment as cautious purchasing behavior continued amid declining store traffic due to requests to refrain from going out, reduced operating hours, store closures and a sharp decline in inbound visitors, together with a further increase in the preference for thrift caused by concerns about income.」
The impact of infectious diseases continued into the third quarter, appearing in the actual sales environment as fewer store visitors, shortened operating hours, store closures, fewer inbound visitors, and a stronger preference for saving. - FY2021-Q2MaterialisedAnnual report
「Conditions remain difficult for the recovery of physical-store sales due to shortened operating hours and a decline in inbound visitor numbers.」
The impact of infectious diseases continued into the second quarter, materializing as shortened operating hours, fewer inbound visitors, and delayed recovery in physical-store sales. - FY2021-Q1MaterialisedAnnual report
「Following the declaration of a state of emergency to prevent the spread of COVID-19, all 45 domestic physical stores were temporarily closed in stages from early April through late May, resulting in a significant decline in sales.」「The company recorded ¥148.549 million in personnel expenses and depreciation expenses incurred during the temporary closure period as an extraordinary loss (losses due to temporary closures and other factors).」
The infectious disease risk materialized in the form of the temporary closure of all 45 stores, weak sales, and ¥148.549 million in temporary closure losses. - FY2020First statedAnnual report
「If the spread of infectious diseases such as viruses affects product sales through requests from local governments to refrain from going out, the closure of commercial facilities or shortened operating hours, employee infections, or declining customer purchasing power, it may affect the performance of the Group.」
Infectious diseases were added as a standalone item under business risks for the first time. The discussion of operating results already described the effects of declining inbound visitor numbers, requests to refrain from going out, and the temporary closure or shortened operating hours of commercial facilities accompanying the spread of COVID-19.