Risks to customer traffic, store operations and business continuity caused by COVID-19
First written in FY2020-Q2. 6 of 17 entries say "Mitigated", first in FY2021-Q3. Latest entry: FY2025.
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
34 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If a pandemic such as COVID-19 occurs, countries around the world may implement measures such as travel restrictions and restrictions on going out, potentially having a significant impact on economic activity.」
The company continues to identify risks of store closures, reduced consumption and disruptions to product procurement networks, reorganized from individual COVID-19 risks into risks associated with pandemics in general. - FY2024RestatedAnnual report
「If a pandemic such as COVID-19 occurs, countries around the world may implement measures such as travel restrictions and restrictions on going out, potentially having a significant impact on economic activity.」
The company continues to identify risks of store closures, reduced consumption and disruptions to product procurement networks, reorganized from individual COVID-19 risks into risks associated with pandemics in general. - FY2023ReframedAnnual report
「If a pandemic such as COVID-19 occurs, countries around the world may implement measures such as travel restrictions and restrictions on going out, potentially having a significant impact on economic activity.」
The company has reorganized the risk from an individual COVID-19 risk into broader risks related to pandemics in general, including store closures, reduced consumption and disruptions to product procurement networks. - FY2023-Q3MitigatedAnnual report
「During the cumulative first 9 months of the current fiscal year, the transition of COVID-19 to a Class 5 infectious disease supported the normalization of social and economic activity, while the number of companies implementing wage increases rose and personal consumption continued to expand, particularly in the services sector.」
The transition of COVID-19 to a Class 5 infectious disease advanced the normalization of social and economic activity, and personal consumption continued to expand. The direct business impact of infectious diseases has eased from previous levels. - FY2023-Q2MitigatedAnnual report
「During the cumulative first 6 months of the current fiscal year, normalization of social and economic activity progressed further as various measures aimed at the post-COVID period took concrete form, and positive effects were seen in personal consumption.」
The normalization of social and economic activity toward the post-COVID period progressed, and positive effects were seen in personal consumption. The direct business impact of infectious diseases has eased from previous levels. - FY2023-Q1MitigatedAnnual report
「During the first quarter of the current fiscal year, Japan’s economy saw the impact of COVID-19 on social and economic activity become limited, and personal consumption gradually recovered.」
The impact of COVID-19 on social and economic activity became limited, and personal consumption also gradually recovered. Although infectious disease risks remain, the direct impact has eased from previous levels. - FY2022The effects of infectious diseases are easing, but risks from changing demand, renewed spread and supply disruptions continueAnnual report
「In the fiscal year ending September 2022, store traffic has generally exceeded that of the same month a year earlier and the effects have gradually diminished, but recovery to levels seen in the fiscal year ended September 2019, before the outbreak spread, is expected to take further time.」
While the direct impact of infectious diseases is gradually diminishing as store traffic recovers, the company continues to identify the possibility of delayed recovery to pre-pandemic levels, changing demand, renewed spread of infection, and disruptions to overseas production and logistics. - FY2022-Q3WorsenedAnnual report
「The situation remains unpredictable, with what is commonly referred to as the seventh wave rapidly spreading in Japan.」
While economic and social activity and personal consumption showed signs of recovery after priority preventive measures were lifted, the seventh wave rapidly spread in Japan, and the renewed expansion of infectious disease risks was reported. - FY2022-Q2MitigatedAnnual report
「Private consumption, which had been gradually recovering toward the end of last year, stagnated after the start of the year due to the spread of the Omicron variant, or the so-called sixth wave, but recovered again in March. Although it continued to be affected by COVID-19, the degree of impact was less pronounced than before.」
Although the sixth wave caused a stagnation in personal consumption, it recovered again in March, and the impact of infectious diseases was described as less severe than previously. - FY2022-Q1Signs of recovery coexisting with the spread of variantsAnnual report
「As the spread of COVID-19 vaccinations led the number of infections to decline, signs of a gradual recovery in social life and consumer behavior emerged toward year-end, including the lifting of requests for shorter business hours at the end of October. However, the outlook remained uncertain, with variants spreading again from early January.」
Signs of recovery from the effects of the outbreak emerged as vaccinations progressed and requests for reduced operating hours were lifted, but uncertainty persisted due to the spread of variants. - FY2021MitigatedAnnual report
「In the fiscal year ending September 2022, the effects have gradually diminished as the outbreak subsided, with store traffic in October exceeding that of the same month a year earlier for the first time in 5 months. However, recovery to levels seen in the fiscal year ended September 2019, before the outbreak spread, is expected to take further time.」
While the effects have gradually diminished as the outbreak subsided and store traffic has begun to recover, the company continues to identify the risk of delayed recovery to pre-pandemic levels, a sixth wave, and disruptions to overseas production and logistics. - FY2021-Q3MitigatedAnnual report
「In accordance with the policies of large commercial facilities subject to requests to suspend operations, some stores temporarily closed, closed on weekends or reduced their operating hours, but the impact was less severe than in the third quarter of the previous fiscal year.」
During the fourth wave, some stores continued to close temporarily, close on weekends or reduce their operating hours, but the impact on store operations was less severe than in the third quarter of the previous fiscal year. - FY2021-Q2WorsenedAnnual report
「In the “Additional Information” section of the previous fiscal year’s annual securities report, the company had assumed that the effects of COVID-19 would largely normalize during the current fiscal year. However, new infections continued to trend upward, and the effects were prolonged by measures such as priority preventive measures in specific regions and declarations of a state of emergency. The company therefore changed its assumption to one that the effects would continue through the following fiscal year and, based on that assumption, made accounting estimates including impairment testing for fixed assets and assessing the recoverability of deferred tax assets.」
The assumption regarding the effects of COVID-19 was changed from normalization during the current fiscal year to continuation through the following fiscal year, explicitly recognizing that the effects would be prolonged. - FY2021-Q1WorsenedAnnual report
「The resurgence of COVID-19 infections, or the so-called third wave, caused economic activity to stagnate broadly, while private consumption remained unrecovered through the year-end shopping season.」
The third wave of COVID-19 arrived, and stagnation in economic activity and the failure of personal consumption to recover continued and intensified as the business environment in the first quarter. - FY2020WorsenedAnnual report
「During the fiscal year, the group’s business was already being adversely affected following the declaration of a state of emergency in response to the spread of COVID-19, including the temporary closure of numerous stores and reduced operating hours for a period. Even after the declaration was lifted, there was no clear prospect of the outbreak subsiding, the recovery in consumption remained slow, and store traffic continued to fall below the results for the same months of the previous year.」
Even after the impact of temporary closures and reduced operating hours became apparent, there was no clear prospect of the outbreak subsiding, and store traffic continued to fall below the results for the same months of the previous year. - FY2020-Q3WorsenedAnnual report
「In the core fashion business, the company temporarily closed or shortened operating hours at numerous stores, placing the health and safety of customers and employees first. While working to normalize store operations in line with developments, it launched the “Washable 3D Mask,” made using shirting fabric, and the “RBC Real Business Casual” line of new workwear suited to telework, but these measures did not offset the impact of the rapid decline in demand and significant decrease in store traffic.」
COVID-19 led to temporary closures and reduced operating hours at numerous stores, a sharp decline in demand and a significant decrease in store traffic. The company also recorded cumulative losses of ¥790 million from temporary store closures. The business impact of the risk has expanded further from the previous quarter. - FY2020-Q2MaterialisedAnnual report
「The group operates through stores. If major earthquakes, natural disasters, fires or other accidents, infectious disease outbreaks, social disruption or other events cause the group or its major business partners to suspend operations or otherwise impede business continuity, the group’s operating results and financial position may be affected. COVID-19, which became apparent from January, is spreading globally and may affect the group’s operating results and financial position, but as of the filing date its impact was difficult to reasonably predict.」
COVID-19 became apparent from January and actually affected the business through a sharp decline in store traffic and net sales, temporary store closures and reduced operating hours. For accounting purposes, estimates were made on the assumption that restrictions on going out would continue at least through June 2020 and gradually subside from July onward.