Risk of Opening New Locations for Healthy-Longevity Services
First written in FY2023. 1 of 3 entries say "Materialised", first in FY2024. Latest entry: FY2025.
The whole theme swung hardest in 2018: 7 of 32 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「To mitigate these risks, the Group is working to verify customer acquisition at existing stores, improve the accuracy of the process for selecting candidate locations for new stores, and monitor competitors' store-opening activities.」
Measures identified for the risk of new store openings for healthy-longevity services include verifying customer acquisition at existing stores, improving the accuracy of candidate-location selection, and monitoring competitors' activities. - FY2024MaterialisedAnnual report
「During the current consolidated fiscal year, the above stores continued to perform poorly, partly because the pre-agreed store-opening conditions differed from those actually encountered. The carrying amounts of the assets and other items related to these stores were reduced to their recoverable amounts, and the resulting reduction was recognized as an impairment loss under extraordinary losses.」
Regarding the risk of new store openings for healthy-longevity services, prolonged poor store performance due to differences in opening conditions and other factors resulted in an impairment loss of ¥96.730 million. - FY2023First statedAnnual report
「The Group operates a fitness business aimed at extending healthy life expectancy and is proceeding with new store openings to expand the business. For each new opening, the Group prepares a business plan based on forecasts of customer acquisition that take into account regional characteristics, population distribution and the store-opening activities of competitors. However, an economic downturn or changes in the assumptions underlying the customer acquisition forecasts could have a material impact on the Group's performance.」
The company has identified as a new risk the possibility that an economic downturn or changes in customer acquisition forecasts associated with expanding new store openings in the fitness business could affect performance.