Declining demand due to an economic downturn in the distribution and food-service industries

「外食産業ではインバウンド需要等により引き続き堅調であるものの、原材料費・人件費・物流費の高騰に加えて、深刻な人手不足の影響などもあり、先行き不透明な状況にあります。流通産業では、所得環境の改善や食品価格上昇による収益の押し上げ効果が一部に見られますが、継続的な物価上昇による消費への影響、人手不足の継続、それに伴う人件費の高騰等により、設備投資について依然として慎重な傾向が継続しております。」

「In the distribution industry, some effects of higher income and product prices boosting earnings were seen, but companies remained cautious about capital investment because of consumers' preference for saving money due to inflation, continuing labor shortages and the resulting increase in labor costs. However, in the food manufacturing industry, demand for automation and labor-saving measures in response to labor shortages increased despite the impact of soaring energy and labor costs, and demand for capital investment continued to increase, particularly among food manufacturers and process centers operated by distribution companies.」

「In the food-service industry, demand continued to recover as the movement of people increased and inbound demand returned. However, the outlook remained uncertain as soaring energy, raw-material and labor costs, together with continued inflation, increased consumers' preference for saving money. In the distribution industry, profitability was on a recovery trend because of improved income conditions and higher product prices, but caution toward capital investment continued because of soaring store energy, raw-material and labor costs. In the food manufacturing industry, despite the impact of soaring energy costs and construction-material prices, demand for automation and labor-saving measures due to labor shortages increased, and capital investment demand showed signs of recovery, particularly among food manufacturers and process centers operated by distribution companies.」

「In the food-service industry, food-service and inbound demand continued to recover as the movement of people increased following the reclassification of COVID-19 as a Class 5 infectious disease, despite soaring energy and raw-material costs and labor shortages. In the distribution industry, demand for food prepared at home remained firm as households continued to seek savings because of soaring electricity and gas bills. However, caution toward capital investment continued because of soaring store energy and raw-material costs, leaving the outlook uncertain. In the food manufacturing industry, demand for automation and labor-saving measures due to labor shortages remained, but food manufacturers continued to show caution toward capital investment because of soaring energy costs and construction-material prices, leaving the outlook uncertain. In the low-temperature logistics industry, construction demand continued in response to the upper limits on working hours for motor-vehicle drivers, collectively known as the 2024 logistics problem, as well as full capacity and aging refrigerated warehouses, particularly in major cities.」

「In the food-service industry, food-service and inbound demand continued to recover as increased movement of people followed the reclassification of COVID-19 as a Class 5 infectious disease, despite soaring energy and raw-material costs and labor shortages. In the distribution industry, demand for food prepared at home remained firm as households increasingly sought to save money because of soaring electricity and gas bills. However, caution toward capital investment continued because of soaring store energy and raw-material costs, leaving the outlook uncertain. In the food manufacturing industry, demand for automation and labor-saving measures remained, in response to labor shortages, but food manufacturers remained cautious about capital investment, affected by soaring energy costs and construction-material prices, leaving the outlook uncertain. In the low-temperature logistics industry, construction demand continued, including demand arising from the review of logistics facilities, to address the upper limits on working hours for motor-vehicle drivers, collectively known as the 2024 logistics problem.」

「In the food-service industry, food-service and inbound demand continued to recover despite soaring energy and raw-material costs and labor shortages, as COVID-19 was reclassified as a Class 5 infectious disease. In the distribution industry, demand for food prepared at home remained firm as households increasingly sought to save money because of soaring electricity and gas bills. However, stores remained cautious about capital investment because of soaring energy and raw-material costs, leaving the outlook uncertain. In the food manufacturing industry, food manufacturers also showed caution toward capital investment because of soaring energy and raw-material costs, leaving the outlook uncertain. In the low-temperature logistics industry, construction demand continued, including demand arising from the review of logistics facilities, to address the upper limits on working hours for motor-vehicle drivers, collectively known as the 2024 logistics problem.」

「In the food-service industry, although the number of COVID-19 infections has been increasing, food-service demand has continued to recover as activity restrictions were relaxed, particularly among individual and family customers. In the distribution industry, a cautious approach to capital investment has emerged because of rising costs, including water, electricity and gas expenses at stores, leaving the outlook uncertain. In the food manufacturing industry, capital investment remained firm, particularly among major food manufacturers, despite soaring raw-material prices and energy costs, and demand for low-temperature logistics facilities likewise continued.」

「In the food-service industry, customer traffic slowed from late July through August because of the seventh wave of COVID-19 infections, but recovery continued compared with the same period of the previous year, when activity and restrictions on serving alcoholic beverages were in place. In the distribution industry, demand for food prepared at home has begun to stabilize because of the lifting of activity restrictions and soaring food prices, while the outlook remains uncertain because of rising costs, including utility expenses. In the food manufacturing industry, capital investment remained firm, particularly among major food manufacturers, despite the impact of soaring raw-material prices, and demand for low-temperature logistics facilities continued.」

「In the food-service industry, sales have generally been recovering since the lifting nationwide on 22 March of the priority preventive measures to prevent the spread of COVID-19. However, nighttime customer traffic has not returned, and difficult conditions continue in some business categories. In the distribution industry, demand for food prepared at home has begun to stabilize because of relaxed activity restrictions and soaring food prices, while the outlook remains uncertain because of rising costs, including utility expenses.」

「The Group's operating results and financial condition could be affected by slower sales at supermarkets, department stores and other businesses due to an economic downturn in the surrounding market, deteriorating profitability in the food-service industry due to sluggish personal consumption, worsening market conditions due to food-safety concerns such as additives and origin mislabeling, and, at present, declining demand resulting from measures to prevent the spread of COVID-19, whose containment remains unforeseeable. This could also occur if customers' financial condition deteriorates and accounts receivable cannot be collected.」

「The business environment surrounding the Group has remained difficult in the food-service industry, where sales have declined because of requests to refrain from going out and requests to shorten operating hours to prevent the spread of COVID-19. In the distribution industry, demand for food increased because of lifestyle changes during the pandemic and increased household consumption, and demand for capital investment remained firm. However, an uncertain outlook is expected to continue if stagnation in personal income and consumer sentiment persists.」

「The business environment surrounding the Group has remained difficult in the food-service industry, where sales have declined because of requests to refrain from going out and requests to shorten operating hours to prevent the spread of COVID-19, as in the previous year. In the distribution industry, demand for food increased because of lifestyle changes during the pandemic and increased household consumption, and demand for capital investment remained firm. However, an uncertain outlook is expected to continue if declining personal income and deterioration in the employment environment persist.」

「The business environment surrounding the Group has remained difficult in the food-service industry, where sales have fallen significantly because of requests to refrain from going out and requests to shorten operating hours to prevent the spread of COVID-19, declining consumer sentiment and the evaporation of inbound demand. In the distribution industry, although demand for food for household consumption increased because of lifestyle changes and the spread of COVID-19, an uncertain outlook is expected to continue if declining personal income and deterioration in the employment environment persist.」

「The Group's operating results and financial condition could be affected by slower sales at supermarkets, department stores and other businesses due to an economic downturn in the surrounding market, deteriorating profitability in the food-service industry due to sluggish personal consumption, worsening market conditions due to food-safety concerns such as additives and origin mislabeling, and, at present, declining demand resulting from measures to prevent the spread of COVID-19, whose containment remains unforeseeable. This could also occur if customers' financial condition deteriorates and accounts receivable cannot be collected.」

「The business environment surrounding the Group has remained difficult in the food-service industry, where sales have fallen significantly because of requests to refrain from going out and requests to shorten operating hours to prevent the spread of COVID-19, declining consumer sentiment and the evaporation of inbound demand. In the distribution industry, although demand for food for household consumption increased as lifestyles changed, an uncertain outlook is expected to continue if declining personal income and deterioration in the employment environment persist.」

「The business environment surrounding the Group has remained difficult in the food-service industry, where sales have fallen significantly because of requests to refrain from going out and requests to shorten operating hours to prevent the spread of COVID-19, declining consumer sentiment and the evaporation of inbound demand. In the distribution industry, although demand for food for household consumption increased as lifestyles changed, an uncertain outlook is expected to continue if declining personal income and deterioration in the employment environment persist.」

「The business environment surrounding the Group has become difficult in the food-service industry, where sales have fallen significantly because of requests to refrain from going out and requests to shorten operating hours to prevent the spread of COVID-19. In the distribution industry, although demand for food for household consumption increased as people stayed home, difficult operating conditions continued because of the effects of a severe labor shortage and rising logistics costs amid consumers' entrenched preference for saving money.」

「At present, demand has declined because of requests to refrain from going out and measures to prevent the spread of COVID-19, including shortened operating hours. If customers' financial condition deteriorates and accounts receivable cannot be collected, this could affect the Group's operating results and financial condition.」

「In the food-service industry, average customer spending increased following price revisions and the launch of limited-time products, and sales at fast-food and other operations remained firm. However, difficult conditions continued because of rising labor and food-material costs and the impact of the consumption-tax increase. In the distribution industry, prepared foods and fresh foods performed steadily and price increases for processed foods contributed to results, but difficult operating conditions continued amid consumers' entrenched preference for saving money, as well as the effects of a severe labor shortage and rising raw-material prices.」

「In the food-service industry, average customer spending increased following price revisions and the launch of limited-time products, and sales at fast-food and restaurant operations remained firm. However, difficult conditions continued because of rising labor and food-material costs. In the distribution industry, prepared foods and fresh foods performed steadily and price increases for processed foods contributed to results, but difficult operating conditions continued amid consumers' entrenched preference for saving money, as well as the effects of a severe labor shortage and rising raw-material prices.」

「In the food-service industry, average customer spending increased following price revisions and the launch of limited-time products, and sales at fast-food and restaurant operations remained firm. However, difficult conditions continued because of rising labor and food-material costs. In the distribution industry, prepared foods and fresh foods performed steadily and price increases for processed foods contributed to results, but difficult operating conditions continued amid consumers' entrenched preference for saving money, as well as the effects of a severe labor shortage and rising raw-material prices.」

「In the food-service industry, sales at fast-food and restaurant operations remained firm, supported by higher average customer spending following price revisions and promotional campaigns, although difficult operating conditions continued because of rising labor costs. In the distribution industry, difficult operating conditions also continued because of consumers' entrenched preference for low prices, intensifying competition with businesses in other industries, a severe labor shortage and rising raw-material prices.」

「In sales of refrigerated and frozen showcases, although new supermarket openings declined and renovation demand resulting from convenience-store consolidation ended, revenue increased 2.6% year on year as new drugstore openings remained strong.」

「In the distribution industry, difficult conditions continued, with new food-supermarket openings held back because of rising construction and transportation costs and difficulties hiring part-time and temporary workers.」

「The business environment surrounding the Group remained challenging in the food-service industry, with a severe labor shortage and rising labor and food-material costs. Nevertheless, total sales in the market exceeded the previous year for 19 consecutive months through the end of the consolidated fiscal year. In the distribution industry, difficult conditions continued, with construction costs rising and difficulties hiring part-time and temporary workers becoming more serious, while new food-supermarket openings were held back.」

「In the distribution industry, difficult conditions continued, with construction costs rising and difficulties hiring part-time and temporary workers becoming more serious, while new food-supermarket openings were held back.」

「The business environment surrounding the Group remained challenging in the food-service industry, with labor costs and food-material costs rising amid a severe labor shortage. Nevertheless, higher average customer spending, led by fast food, meant that sales at all stores, including both existing and new stores, exceeded the previous year for 12 consecutive months, and performance was generally strong. In the distribution industry, difficult conditions continued, including sluggish consumption due to unsettled weather and increasingly serious difficulties hiring part-time and temporary workers.」

「In frozen and refrigerated showcase sales, the market remained sluggish because of Japan's declining birth rate and aging population, while new supermarket and convenience-store openings were held back. However, sales increased 0.6% year on year as investment in supermarket and drugstore renovations increased.」

「In the food-service industry, izakaya outlets struggled, with both the number of outlets and sales falling below the previous year. However, fast-food and restaurant operations drove performance, and total sales exceeded the previous year. In the distribution industry, as consumers continued to show a strong preference for saving money, consolidation progressed in the convenience-store industry, intensifying competition to secure new locations and improve the quality of existing stores.」

「In the food-service industry, negative factors included a decline in the number of izakaya outlets and their sales, record-early snowfall and fewer holidays. However, fast-food operations drove performance, and sales remained generally firm. In the distribution industry, grocery sales remained firm as consumers became more inclined to economize, but competition across business formats, including online retail, convenience stores and drugstores, intensified further. Store-based retailers such as department stores and general merchandise supermarkets struggled.」

「In the distribution industry, store-based retailers such as department stores and general merchandise supermarkets struggled due to the effects of unsettled weather, stronger consumer preference for thrift and the rise of online shopping. The convenience store industry, which had performed well, also faced difficult conditions in September, with sales declining slightly year on year.」

「The environment surrounding the Group remained generally solid in the food-service industry, as sales in the fast-food format were strong. In the distribution industry, intense price competition across business formats, including convenience stores, supermarkets and drugstores, continued, but sales remained above the previous year’s level, supported by solid food sales at supermarkets and strong sales of boxed meals, rice balls and desserts at convenience stores in response to demand for leisure activities such as cherry-blossom viewing, which also increased customer traffic.」

「A slowdown in sales at supermarkets, department stores and other retailers, deteriorating earnings in the food-service industry due to sluggish personal consumption, and deteriorating market conditions due to concerns about food safety, including BSE, could affect the Group’s operating results and financial position.」