Store Closure and Business Continuity Risks Due to the Spread of COVID-19
First written in FY2021-Q1. 6 of 13 entries say "Mitigated", first in FY2021-Q2. Latest entry: FY2025-Q1.
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
33 other companies' latest entry also says "Mitigated".
- FY2025-Q1MitigatedAnnual report
「In the China business, the impact of the infectious disease that spread mainly among children from September last year onward has been almost eliminated, but economic activity originating from the real estate downturn remains sluggish.」
The company explained that the impact of the infectious disease that spread in China from September of the previous year onward had been almost eliminated, reducing its impact on the business. Meanwhile, economic activity remained sluggish. - FY2024MitigatedAnnual report
「In the Japan business, recovery became more pronounced each quarter after COVID-19 was reclassified as a Category V disease under the Infectious Diseases Act, and revenue and operating profit reached record highs in the three months ended the fourth quarter.」
In Japan, business performance recovered markedly after COVID-19 was reclassified as a Category V disease, reducing the impact of infectious-disease-related store closures and going-concern risks. - FY2024-Q3MaterialisedAnnual report
「Revenue in the China business remained sluggish as economic uncertainty and a decline in the number of children visiting stores due to the spread of infectious diseases weighed on sales. Revenue for the nine months ended the third quarter was ¥5,094 million.」
In China, the number of children visiting stores actually declined because of the spread of infectious diseases, and revenue remained sluggish. - FY2024-Q2MitigatedAnnual report
「The Japan business experienced its first summer vacation after COVID-19 was reclassified as a Category V disease under the Infectious Diseases Act. Supported by the recovery in demand for going out and the positive impact of the intense heat on indoor facilities, revenue for the six months ended the second quarter reached a record high of ¥31,792 million.」
Demand for going out recovered during the first summer vacation after COVID-19 was reclassified as a Category V disease under the Infectious Diseases Act, and revenue in the Japan business reached a record high. The impact of infectious-disease-related store closures and going-concern risks declined further. - FY2024-Q1MitigatedAnnual report
「The Japan business remained solid as social and economic activity normalized, including the easing of mask-wearing requirements and the reclassification of COVID-19 as a Category V disease under the Infectious Diseases Act.」
The normalization of social and economic activity, including the easing of mask-wearing requirements and the reclassification of COVID-19 as a Category V disease under the Infectious Diseases Act, became apparent, further reducing the impact of infectious-disease-related store closures and going-concern risks. - FY2023MitigatedAnnual report
「In the China business, some stores were closed during the fiscal year because of movement restrictions under the zero-COVID policy, but all stores resumed operations in December after the policy was lifted.」
In China, the zero-COVID policy was lifted in December, and all stores resumed operations. However, the effects of closures and impairment losses remained for the year. - FY2023-Q3WorsenedAnnual report
「In the China business, the number of closed stores increased and customer numbers declined significantly from September onward as lockdown restrictions and strict movement controls under the zero-COVID policy continued.」
In China, restrictions under the zero-COVID policy intensified further from September, resulting in more store closures and fewer customers. The cumulative operating loss of the China business was ¥2,027 million. - FY2023-Q2WorsenedAnnual report
「In China, lockdown restrictions and strict movement controls under the zero-COVID policy expanded, particularly in major cities such as Shanghai and Beijing. As a result, people were asked to refrain from going out, and customer traffic did not recover. Existing-store sales for the second quarter of the current fiscal year's consolidated accounting period were 58.3% of the same period in 2019, a difficult result.」
In Japan, the impact of the infectious disease continued to vary by region, with customer numbers declining as infections increased and operating hours reduced at some stores. In China, lockdowns and restrictions on movement under the zero-COVID policy continued. - FY2022-Q3Recovery progressed, but cluster infections and closures continued.Annual report
「Although cluster infections of COVID-19 continued to occur in various regions of China from September onward, the China business secured revenue during the three months ended the third quarter at almost the same level as two years earlier.」
In China, cluster infections continued and the impact of the infectious disease on the business remained, while revenue recovered to approximately the level of two years earlier. In ASEAN, all subsidiaries resumed operations in November. - FY2022-Q2The impact of the infectious disease continued and recurred in some regions.Annual report
「Revenue in the China business remained strong after June. Cluster infections of COVID-19 spread across the country in August, temporarily reducing revenue because of temporary closures mandated by government regulations, but stores progressively reopened in the latter half of August and revenue began to recover again.」
In China, cluster infections and temporary closures due to government regulations occurred during the recovery phase. In Japan and ASEAN, closures and reduced operating hours also continued, and the impact of the infectious disease on the business had not been eliminated. - FY2022-Q1The impact of the infectious disease continued.Annual report
「In terms of the impact of COVID-19, the China business was the first to move toward containment, with revenue beginning to recover from the three months ended the third quarter of the previous fiscal year and remaining on track during the three months ended the first quarter. In Japan, revenue declined because stores in affected areas were temporarily closed and operating hours were shortened based on the government's declaration of a state of emergency and the application of priority preventive measures.」
While recovery progressed in China, closures and reduced operating hours associated with the state of emergency and other measures continued in Japan, and the impact of the infectious disease on the business had not been eliminated. - FY2021-Q2MitigatedAnnual report
「Based on the above, the company determined that, as of the end of the three months ended the second quarter, the circumstances giving rise to significant risks to the assumption that business activities would continue into the future had been resolved.」
Given the pronounced recovery in revenue and operating cash flow in Japan and China, as well as the securing of sufficient working capital under its funding plan, the company determined that the circumstances giving rise to significant risks to the going-concern assumption had been resolved. - FY2021-Q1MaterialisedAnnual report
「As the COVID-19 pandemic spread, all of the group's stores in China remained closed during the three months ended the first quarter, continuing from the previous fiscal year, while all stores in the ASEAN countries and Japan were temporarily closed from mid-March 2020 onward.」
Store closures actually occurred in China, ASEAN and Japan. Revenue fell 79.6% year on year, while the operating loss was ¥4,135 million and the ordinary loss was ¥4,279 million. As of the end of May, the company stated that significant risks existed to the going-concern assumption.