Changes in retail competition and the risk of mass-market retailers withdrawing from apparel

「By major channel, department-store sales were 85.2% of the same period of the previous year, general merchandise retail sales were 89.5%, men's specialty-store sales were 97.9%, and online sales through the Web shop were 92.6%.」

「百貨店のドレスシャツ売場におきましては、節約志向の高まりやオフィスファッションのカジュアル化による需要減少に加え、得意先店舗の閉鎖や店頭不振に伴う在庫調整の影響を受け、売上高および粗利益は前年同期を下回る結果となりました。」

「However, sales and gross profit were broadly in line with the previous year, partly because of lower customer traffic to stores and consumers' tendency to hold back on purchases.」

「By major channel, department-store sales were 101% of the same period of the previous year, general merchandise retail sales were 77%, men's specialty-store sales were 93%, and online sales through the Web shop were 101%.」

「By further strengthening our ongoing initiatives, including increasing the share of original products and improving transaction terms through the conversion of the CHOYA-SHIRT brand into dedicated corners and single-company operations in department-store shirt sections, expanding SHIRT HOUSE concession stores in mass-retailer dress-shirt sections, and growing internet sales centered on the official Yamatoki website, we will work to restore sales and earnings.」

「As the competitive environment for retailers changes, the contraction of apparel selling space is expected to continue, due to the closure of regional department stores, the increasing oligopolization of specialty stores, and changes in the business formats of mid-sized general merchandise retailers, among other factors. To address this, we will strengthen the planning and development of original products, centered on consolidating the department-store channel under the CHOYA brand and expanding SHIRT HOUSE concession spaces in the general merchandise retail channel, and will expand selling spaces where products are sold directly to consumers.」

「As the competitive environment for retailers changes, the contraction of apparel selling space is expected to continue, due to the closure of regional department stores, the increasing oligopolization of specialty stores, and changes in the business formats of mid-sized general merchandise retailers, among other factors.」

「④ As the competitive environment for retailers changes, the contraction of apparel selling space is expected to continue, due to the closure of regional department stores and changes in the business formats of mid-sized general merchandise retailers, among other factors. To address this, we will strengthen the planning and development of original products, centered on the CHOYA brand for the department-store channel and the SHIRT HOUSE brand for the general merchandise retail channel, and expand selling spaces where these products are sold directly to consumers. We will also further strengthen online sales centered on original products.」

「④ As the competitive environment for retailers changes, the contraction of apparel selling space is expected to continue, due to the closure of regional department stores and changes in the business formats of mid-sized general merchandise retailers, among other factors.」

「As the competitive environment for retailers changes, the contraction of apparel selling space is expected to continue, due to the closure of regional department stores and changes in the business formats of mid-sized general merchandise retailers, among other factors.」

「Against this backdrop, the Group's sales volume declined significantly, owing to lower sales from directly operated stores and casual concession operations withdrawn during the previous fiscal year, lower sales to department stores, store closures at customers due to natural disasters such as the typhoons and earthquakes that occurred frequently in the second quarter, and the resulting weakness in consumer sentiment, among other factors.」

「Under these operating conditions, our group’s domestic sales volumes decreased year on year. In addition to the decline in sales from directly operated stores and casual concession counters that were closed during the previous fiscal year, sales to department stores declined, while stores operated by customers were closed because of natural disasters, including the typhoons and earthquakes that occurred frequently in the second quarter. Consumer sentiment also weakened as a result.」

「Against this backdrop, the Group's domestic sales volume declined from the same period of the previous year, owing to lower sales from directly operated stores and casual concession operations withdrawn during the previous fiscal year, as well as lower sales to department stores and an increase in returns.」

「Domestic sales declined from the previous fiscal year, affected by the complete withdrawal from unprofitable casual concession operations and the closure of some directly operated stores, as well as purchasing cutbacks at major general merchandise retailers due to excess inventories.」

「Against this backdrop, the Group's domestic sales volume in Japan declined from the same period of the previous year, owing to reduced forward orders from major retailers and fewer additional orders due to generally weak in-store summer apparel sales, among other factors.」

「Against this backdrop, the Group's domestic sales volume declined substantially from the same period of the previous year, owing to reduced forward orders from major retailers and fewer additional orders due to generally weak in-store summer apparel sales, among other factors.」

「② Decline in forward orders placed with us by major GMS operators due to excess inventories」

「Against this backdrop, the Group's domestic sales volume declined substantially from the same period of the previous year, owing to reduced forward orders from major retailers because of excess inventories, fewer additional orders due to generally weak summer and autumn apparel sales, and the absence this year of the initial contribution from acquiring CHOYA㈱'s wholesale business for ready-made apparel in February 2015, among other factors.」

「Against this backdrop, the Group's domestic sales volume declined substantially from the same period of the previous year, owing to reduced forward orders from major retailers because of excess inventories, fewer additional orders due to generally weak summer and autumn apparel sales, the absence this year of the initial contribution from acquiring CHOYA㈱'s wholesale business for ready-made apparel in February last year, and delays in introducing autumn merchandise due to the prolonged hot weather, among other factors.」

「Against this backdrop, the Group's domestic sales volume declined substantially from the same period of the previous year, owing to reduced forward orders from major retailers because of excess inventories, fewer additional orders due to generally weak summer apparel sales, and the absence this year of the initial contribution from acquiring CHOYA㈱'s wholesale business for ready-made apparel in February last year, among other factors.」

「As the competitive environment for retailers changes, apparel businesses may continue to withdraw, particularly among mid-sized general merchandise retailers.」