Intensifying competition in the specialty bread market and higher SG&A expenses due to growth investment
First written in FY2022-Q3. 7 of 15 entries say "Worsened", first in FY2023-Q1. Latest entry: FY2027-H1.
No other company in this theme has enough history to compare yet.
- FY2027-H1MitigatedAnnual report
「At Ginza Nishikawa, revenue per company-operated store improved to 108.6% of the previous year’s level. The deficit narrowed substantially as a result of closing unprofitable stores and restructuring the earnings model, and earnings improvement measures are generally progressing as planned.」
Although competition in the specialty shokupan market continues, Ginza Nishikawa substantially narrowed its deficit by closing unprofitable stores and restructuring its earnings model. Revenue per company-operated store also improved to 108.6% of the previous year’s level. - 2026-09-11WorsenedEarnings
「In addition to the reversal of temporary sales and profit recorded in the previous fiscal year, the impact of fixed-cost burdens and higher personnel expenses associated with the operation of the new factory resulted in sales of ¥1,217,198 thousand, down 5.7%, and an operating loss of ¥94,794 thousand, compared with an operating loss of ¥50,986 thousand in the same period of the previous year.」
In the FOOD business, the reversal of temporary earnings and higher fixed and personnel costs at the new factory led to a wider operating loss than in the same period of the previous year. - FY2026Narrowing lossesAnnual report
「As a result, profitability improved, with sales of ¥2,512.535 million, up 3.1% year on year, and an operating loss of ¥135.572 million, compared with an operating loss of ¥287.256 million in the same period of the previous year.」
The FOOD Business remains loss-making at the operating level, but the operating loss narrowed from ¥287.256 million in the previous year to ¥135.572 million, while sales increased by 3.1%. - FY2025-H1WorsenedAnnual report
「Meanwhile, the FOOD Business, particularly the Ginza Nishikawa specialty bakery chain, recorded year-on-year declines in sales and profit because of store consolidation costs in Japan and investment costs for developing overseas markets.」
The company explains that the impact of competition and store restructuring in the specialty bakery market arose as store consolidation costs in Japan and investment costs for developing overseas markets, resulting in lower sales and profit in the FOOD Business. - FY2025-Q1WorsenedAnnual report
「In the food-related business, the specialty bakery chain Ginza Nishikawa continued to face an oversupplied market, resulting in year-on-year declines in sales and profit.」
The specialty bakery market remained oversupplied, and Ginza Nishikawa recorded year-on-year declines in sales and profit. - FY2024WorsenedAnnual report
「The company estimates that the specialty bakery market accounts for approximately ¥20 billion to ¥35 billion of Japan's approximately ¥350 billion bread market. Although the number of specialty bakeries, once said to have peaked at approximately 1,800, has now fallen to approximately 600, the market remains oversupplied. In the Ginza Nishikawa business, performance fell below forecasts because of the impact of increasingly red-ocean conditions, and an impairment loss of ¥153.969 million was recorded as an extraordinary loss.」
The company explains that the market remains oversupplied even after the number of specialty bakery stores fell from approximately 1,800 to approximately 600, with intensifying competition expanding and becoming more specific through the closure of unprofitable stores and an impairment loss of ¥153.969 million. - FY2024-Q3RestatedAnnual report
「In Japan, the Ginza Nishikawa segment has faced increasingly red-ocean conditions over the past 2 years as more companies have entered the specialty bakery market. Under these conditions, Ginza Nishikawa is strengthening its expansion into overseas markets.」
The company continues to recognize the increasingly red-ocean conditions in Japan's specialty bakery market and has identified stronger overseas expansion as a response. - FY2024-Q2RestatedAnnual report
「In Japan, the Ginza Nishikawa segment has faced increasingly red-ocean conditions over the past 2 years as more companies have entered the specialty bakery market, and it is strengthening its expansion into overseas markets.」
The company has reaffirmed its recognition that the increase in entrants and increasingly red-ocean conditions continue in Japan's specialty bakery market, and has identified stronger overseas expansion as a response. - FY2024-Q1WorsenedAnnual report
「In the Ginza Nishikawa segment, which was expected to be a growth engine for the OSG Group, the specialty bakery market has become increasingly red-ocean over the past 2 years as more companies have entered. Amid these conditions, competitors, including our company, have successively closed stores, bringing the number of stores closer to the point of contraction equilibrium at which the profits of surviving operators can be captured.」
The company explains that the specialty bakery market has entered a contraction phase, with more entrants and increasingly red-ocean conditions, as competitors and the company itself successively close stores. It also notes the potential for surviving operators to benefit. - FY2023-Q3WorsenedAnnual report
「In Japan, the premium bread boom in recent years has led to more companies entering the specialty bakery market, intensifying competition and creating a red-ocean market, while the industry has simultaneously entered a period of consolidation. Although we have been actively opening stores in new areas, our company has also been affected by the red-ocean market during the current fiscal year.」
The company explains that the increase in entrants and the red-ocean market conditions in the specialty bakery market continued to affect its own business as it actively opened stores. The franchise business recorded a 30.5% decline in sales and an 82.4% decline in operating profit. - FY2023-Q2MaterialisedAnnual report
「During the current fiscal year, our company has also been affected by the red-ocean market.」
The company reports that intensifying competition in the specialty bakery market has affected its own business, resulting in a 31.0% decline in sales and a 73.4% decline in operating profit in the franchise business. - FY2023-Q1WorsenedAnnual report
「In recent years, the premium bread boom has led to more companies entering the specialty bakery market, intensifying competition and creating a red-ocean market, while the industry has simultaneously entered a period of consolidation.」
The company states that competition in the specialty bakery market has become a red-ocean market as more companies have entered, and that the industry has moved into a phase of consolidation. - FY2022-Q3First statedAnnual report
「However, SG&A expenses increased because of intensified entry by other companies into the specialty bakery market and proactive investments for growth, including in the delivery franchise business.」
The company has disclosed for the first time that increased entry by other companies into the specialty bakery market and proactive investments for growth increased SG&A expenses and affected operating performance.