Decline in domestic sales due to a shortage of popular prize items and titles

「Same-store sales performed strongly during the interim consolidated accounting period, reaching 106.0% of the prior-year period. By segment, the core prize segment reached 106.9%, while the kids' prize segment, included within it, drove overall segment sales at 120.3%.」

「The core prize segment reached 105.3%, while kids' prizes for young children, the company's main target market, drove sales significantly to 115.6%, helped by the expansion of "easy-to-win booths."」

「The prize segment, which has the largest share of sales, recorded same-store sales of 111.3% of the prior-year period during the interim consolidated accounting period. Kids' prizes, which are being particularly strengthened, drove sales significantly, reaching 125.4%.」

「Kids' prizes, which the company has been strategically strengthening in the prize segment, continued to perform well, driving the segment overall, with segment sales at 107.9% of the previous period.」

「In the domestic business, the company strengthened its rollout of kids' prizes in the strong-performing prize segment, driving sales as same-store sales in the prize segment during the cumulative first-quarter consolidated period reached 106.6% of the prior-year period.」

「As limited-edition prizes such as PAW Patrol, which is highly popular with young children, became hits, same-store sales in the segment were 117.0% year on year in the fourth quarter consolidated accounting period and 114.1% for the full year.」

「As limited-edition prizes, including those featuring the male artist group NCT127, became hits, same-store sales in the entire prize segment during the third quarter consolidated accounting period were 113.1% of the prior-year period, or 108.5% of the same period in 2019.」

「By segment, the prize business continued to perform well. The strengthened focused rollout of best-selling prizes, including company-exclusive prizes featuring popular characters, and prizes developed in collaboration with major confectionery manufacturers resulted in third-quarter consolidated-period sales in the prize business reaching 104.9% of the level two years earlier on a same-store basis.」

「The online crane business was not affected by these factors. The company focused on exclusive prizes, including collaborations with popular VTubers, and campaigns encouraging customers to spend time at home. As a result, sales for the three-month consolidated period increased 92.3% year on year.」

「This was because film-related merchandise remained firm, and same-store sales growth in the core prize segment was strong at 4.5%.」

「This was because film-related merchandise remained firm, and same-store sales growth in the core prize segment was strong at 6.7%.」

「The prize segment, the core business that had previously driven overall performance with double-digit growth, saw same-store sales growth narrow to 0.8% because there were few popular prizes to replace those that had been hits the previous year. Product sales, centered on underperforming card games with no popular titles, also struggled, with same-store sales down 17.7%, contributing to the overall decline in revenue.」