Decrease in wholesale sales due to FC-owned stores bringing New Year’s card printing in-house
First written in FY2023-Q3. 1 of 2 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2024-Q3.
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- FY2024-Q3MaterialisedAnnual report
「New Year’s card printing, the largest business opportunity in the パレットプラザ business, totaled 9.56 million cards across our chain, including the online New Year’s card ordering service, equivalent to 85.53% of the prior-year period at existing stores. However, following a review of our sales strategy, total chain revenue from New Year’s card printing was 96.24% of the prior-year period. The decline in in-store card sales increased the proportion of printing performed in-house at franchisee-owned stores, reducing the number of cards outsourced to our group for production and lowering wholesale revenue from New Year’s card printing for franchisees.」
The decline in New Year’s card sales continued, and its effects, including higher in-house production rates at franchisee-owned stores, fewer cards outsourced for production, and lower wholesale revenue from franchisees, were confirmed in the cumulative third-quarter results. - FY2023-Q3First statedAnnual report
「As the number of cards sold in stores declined, franchisee-owned stores increased the proportion of New Year’s card printing performed in-house. This reduced the number of cards outsourced to our group for production and lowered wholesale revenue from New Year’s card printing for franchisees.」
The company identified as a new business risk and structural change that higher in-house production rates at franchisee stores had reduced both the number of cards outsourced to the group for production and wholesale revenue from franchisees.