Changes in the Retail Environment for Department Stores and Shopping Centers
First written in FY2016. 12 of 30 entries say "Worsened", first in FY2019-Q1. Latest entry: FY2026-H1.
House Of Rose moved to the "Worse" side of this theme in 2018.
0 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Growing consumer preference for saving in response to the increased household burden from continued price increases for food and other goods」
It states that consumers are becoming more inclined to save against the backdrop of the increased household burden from continued price increases. - FY2025-H1Recovery demand coexisting with higher costs and labor shortagesAnnual report
「Against the backdrop of a weaker yen and rising share prices, the retail and travel industries benefited from strong inbound demand and sales of high-end goods, but real wages remained sluggish as prices rose, and consumer sentiment generally remained weak.」
While inbound demand and sales of high-end goods remained strong, consumer sentiment was weak because rising prices and sluggish real wage growth made consumers more cautious, leaving the sales environment subject to both improvement and deterioration factors. - FY2024-Q3Recovery in urban department stores coexisting with labor shortagesAnnual report
「Supported by stronger inbound demand and the boost to personal consumption from rising share prices, demand for travel-related services and high-end goods remained firm, and urban department stores and other businesses also began to recover, while labor shortages became increasingly pronounced, particularly in the services sector.」
The recovery of urban department stores and other businesses driven by inbound and high-end goods demand, together with increasingly acute labor shortages, are both noted. - FY2024-Q2Economic recovery coexisting with selective spendingAnnual report
「During the cumulative first six months of the fiscal year, the domestic economy benefited from the lifting of entry restrictions imposed during the COVID-19 pandemic and stronger inbound demand, with tourism, dining and other industries beginning to recover, while labor shortages became more pronounced. As the yen weakened, export-related industries expanded their earnings, but consumer prices continued to rise, the sense of an economic recovery remained weak, and consumers became increasingly selective in their spending.」
While the lifting of entry restrictions and stronger inbound demand supported a recovery, labor shortages, rising prices and increasingly selective spending persisted. - FY2024-Q1Recovery in the retail environment alongside selective purchasingAnnual report
「During the first quarter of the current fiscal year, the domestic economy showed a gradual recovery as measures to address COVID-19 were eased, and corporate earnings also generally began to improve. Consumer sentiment recovered, and the food-service and travel-related industries, which had languished during the pandemic, grew. At the same time, successive price increases, including for food products, made consumers' purchasing behavior increasingly selective.」
While the easing of pandemic-related measures supported a recovery in economic activity and consumer sentiment, price increases strengthened consumers’ tendency to be selective in their purchases, leaving the sales environment subject to both recovery and deterioration factors. - FY2023RestatedAnnual report
「However, even after restrictions on activities were eased from autumn onward and nationwide travel subsidies were introduced, customer traffic during weekends and holiday periods remained sluggish in some respects.」
The disclosure describes a sales environment in which customer traffic at department stores and other locations remained sluggish during weekends and holiday periods even after restrictions on activities were eased. - FY2023-Q3Customer traffic remained sluggish even after restrictions on activities were easedAnnual report
「The Winter Sale, the largest event that began in late December, was affected by the decision to hold it later than in the previous year, but we strengthened promotional measures to secure customer traffic.」
Even with restrictions on activities eased and the introduction of nationwide travel subsidies, customer traffic remained sluggish during weekends and holiday periods, and the change in the timing of the Winter Sale also had an impact. - FY2023-Q2Recovery at department stores driven by demand for high-value products alongside weak consumptionAnnual report
「Consumer sentiment was generally weak and purchasing behavior became increasingly selective. Meanwhile, department stores showed signs of recovery, mainly driven by demand for high-value products.」
While weak consumer sentiment and selective purchasing continued, the disclosure describes signs of recovery at department stores, mainly driven by demand for high-value products, indicating divergent conditions in the sales environment. - FY2023-Q1WorsenedAnnual report
「Although business activities during the current fiscal year had largely returned to normal, customer traffic remained weak, particularly at department stores,」
Although store operations had largely returned to normal, the recovery in customer traffic remained weak, particularly at department stores, which are major store locations, and the challenging sales environment continued. - FY2022WorsenedAnnual report
「Because House of Rose directly operated stores are located mainly in urban department stores, station buildings and similar locations, they were affected by repeated closures and shorter operating hours at those locations following declarations of a state of emergency and other measures. As people in the main customer age groups, particularly in urban department stores, increasingly refrained from going out, the effects spread to regional areas, and customer numbers remained sluggish, leaving conditions generally challenging.」
Repeated closures and shorter operating hours at store locations following declarations of a state of emergency and other measures, together with sluggish customer numbers as the main customer groups refrained from going out, continued to affect the operation of directly operated stores. - FY2022-Q3Signs of recovery at brick-and-mortar stores alongside cost and variant risksAnnual report
「The difficult conditions gradually eased as declarations of a state of emergency and other measures related to COVID-19 were lifted. Consumer sentiment also began to recover, and signs of a recovery emerged in the performance of brick-and-mortar stores as well as online retailers. However, labor shortages intensified toward year-end in some sectors, while higher procurement prices, including for imported raw materials, and the spread of COVID-19 variants created an uncertain outlook.」
While the lifting of declarations of a state of emergency and the recovery in consumer sentiment provided signs of a recovery at brick-and-mortar stores, labor shortages, higher procurement prices and the spread of variants were also cited. - FY2022-Q1WorsenedAnnual report
「In the retail industry, department stores and large commercial facilities in affected areas partially closed or shortened their operating hours because of multiple declarations of a state of emergency and other measures. As consumer sentiment, which had been recovering, stalled and people continued to refrain from going out, attracting customers remained difficult, and operating conditions at brick-and-mortar stores remained challenging.」
The disclosure states that partial closures and shorter operating hours at department stores and large commercial facilities, as well as difficulty attracting customers because people continued to refrain from going out, persisted, leaving the sales environment for brick-and-mortar stores challenging. - FY2021WorsenedAnnual report
「After all stores reopened, customer service involving touching customers' skin, a basic element of our sales method, was restricted while infection-control measures were rigorously implemented. In addition, sales at urban department stores, which generate particularly high sales, declined as people refrained from going out.」
The disclosure states that the sales slump at urban department stores actually occurred as a result of people refraining from going out and restrictions on customer service at brick-and-mortar stores, including department stores. - FY2021-Q3WorsenedAnnual report
「In the retail industry, department stores and other retailers fell below even the year-earlier level, which had been affected by the consumption tax increase, because of requests to refrain from going out and the collapse in inbound demand.」
The effects of refraining from going out and the collapse in inbound demand continued to weigh on the sales environment at department stores and other locations, with conditions remaining below the level of the same period of the previous year. - FY2021-Q2MaterialisedAnnual report
「There were also instances in which customer traffic at major stores in central urban areas declined as more people stayed home and avoided crowded metropolitan areas, while customer traffic shifted to suburban stores.」
The disclosure states that changes in the sales environment actually emerged as lower customer traffic at major urban stores and a shift in customer traffic to suburban stores. - FY2021-Q1MaterialisedAnnual report
「In response to requests to close following the government's declaration of a state of emergency, most department stores and specialty stores closed, creating an extremely challenging operating environment for the retail industry.」
The previously disclosed risk of deterioration in the sales environment actually materialized as most department stores and specialty stores closed following the declaration of a state of emergency. - FY2020MaterialisedAnnual report
「Following the government's declaration of a state of emergency, almost all of our directly operated stores nationwide temporarily closed or shortened their operating hours.」
The disclosure states that changes in the sales environment actually resulted in temporary closures and shorter operating hours at stores, affecting sales at directly operated stores. - FY2020-Q3WorsenedAnnual report
「From October onward, retail sales declined significantly, particularly for high-value products, apparel and daily necessities, because of the decline following the front-loaded demand ahead of the consumption tax increase. Although sales subsequently showed signs of recovery, the effects have continued because of weak consumer sentiment. In addition, Typhoon Hagibis forced stores, mainly in the Tokyo metropolitan area, to close temporarily or shorten their hours, while an unusually warm winter and other unsettled weather also contributed to an overall challenging business environment.」
The disclosure describes the challenging retail environment, including the decline following the consumption tax increase, weak consumer sentiment, store closures caused by typhoons, and the effects of an unusually warm winter and other factors. - FY2020-Q2WorsenedAnnual report
「While some front-loaded demand related to the consumption tax increase was seen in the retail industry, successive natural disasters and unfavorable weather affected corporate performance. Rising costs, including labor costs, also made the operating environment increasingly challenging.」
Although there was temporary front-loaded demand before the consumption tax increase, natural disasters and unsettled weather affected corporate performance, while higher costs, including labor costs, further intensified the challenging sales environment. - FY2020-Q1Decline in demand after a temporary surge and weather-related effectsAnnual report
「During the first quarter of the current fiscal year, the domestic economy continued to recover gradually, with corporate earnings generally remaining firm, although weakness was also seen mainly in exports against a backdrop of global trade issues. In the retail industry, extended holidays associated with the change of era and inbound demand contributed to sales to some extent, but sales declined after the holidays and unsettled weather left the second half generally lacking momentum.」
While extended holidays associated with the change of era and inbound demand provided temporary support, the retail environment weakened in the second half because of the decline after the holidays and unsettled weather. - FY2019WorsenedAnnual report
「In the retail industry, labor shortages at brick-and-mortar stores became increasingly severe. In addition to higher expenses, including labor costs, competition with mail-order operators and others intensified, making the overall operating environment even more challenging.」
The disclosure states that labor shortages, higher costs and intensifying competition with mail-order operators made the sales environment for brick-and-mortar stores more challenging. - FY2019-Q3WorsenedAnnual report
「As profitability conditions in the retail industry became increasingly challenging because of labor shortages and soaring labor costs, competition within the industry, including from mail-order operators, also intensified, leading to increasing divergence between winners and losers.」
The disclosure states that labor shortages, soaring labor costs and intensifying competition, including from mail-order operators, made profitability conditions in the retail industry even more challenging. - FY2019-Q2WorsenedAnnual report
「In the retail industry, successive natural disasters and extreme weather affected corporate performance. In addition, the growth of price-focused operators and online retailers reflecting consumers' thrift-mindedness made the operating environment for traditional retailers, including department stores and major mass retailers, even more challenging.」
In addition to the impact of successive natural disasters and extreme weather on performance, the growth of price-focused operators and online retailers has made the environment for traditional retailers, including department stores and mass retailers, even more challenging. - FY2019-Q1WorsenedAnnual report
「Meanwhile, competition in the retail industry has intensified across traditional industry boundaries, led by expanding e-commerce operators. In addition to higher raw-material prices and labor costs, consumers’ persistent preference for frugality has kept the earnings environment generally challenging.」
The disclosure states that profitability conditions in the retail industry are generally challenging because of intensifying competition, including mail-order sales, higher raw material prices, rising labor costs and persistent thrift-mindedness. - FY2018-Q3Divergence in demand and profitability conditionsAnnual report
「In the retail industry, urban department stores and other businesses saw growth driven by inbound demand and high-value consumption supported by rising share prices, despite the effects of typhoons and other unsettled weather. However, profitability conditions are becoming increasingly polarized because of higher labor and logistics-related costs resulting from labor shortages.」
The disclosure states that urban department stores and other businesses saw growth from inbound demand and high-value consumption, while higher costs associated with labor shortages have polarized profitability conditions in the retail industry. - FY2018-Q2MitigatedAnnual report
「In the retail industry, amid increasingly severe labor shortages and despite the effects of unsettled summer weather, consumer sentiment recovered and inbound demand regained momentum. As a result, even brick-and-mortar stores, which were being pressured by online consumption, generally showed a gradual upward trend.」
While labor shortages and unsettled weather had an impact, the disclosure describes gradual improvement in the retail environment, including brick-and-mortar stores, driven by recovering consumer sentiment and a recovery in inbound demand. - FY2018-Q1MitigatedAnnual report
「In the retail industry, consumer sentiment improved against a backdrop including rising share prices, and the recovery in inbound demand also contributed. Personal consumption as a whole gradually recovered.」
The disclosure describes improving consumer sentiment, a recovery in inbound demand and a recovery in personal consumption, indicating some improvement in the sales environment. - FY2017MaterialisedAnnual report
「Although the retail industry was generally trending toward improvement, the recovery in personal consumption remained weak. Performance disparities between business sectors became increasingly pronounced, with some department stores closing their buildings.」
The disclosure describes a sales environment in which weak personal consumption was compounded by actual closures of some department-store buildings. - FY2017-Q3RestatedAnnual report
「In the retail industry, personal consumption lacked strength because of persistent thrift-mindedness, in addition to the prolonged slump in apparel demand and the slowdown in inbound demand. Department stores, mass retailers and other businesses continued to face a challenging environment.」
The disclosure states that the challenging environment surrounding key sales channels, including department stores and mass retailers, has continued. - FY2016First statedAnnual report
「In addition to continuing to expand our sales channels through department-store counters, we intend to actively open stores in shopping centers and other locations. However, if sales at department stores, shopping centers or other locations deteriorate for any reason, our operating results may be affected.」
The disclosure indicates that changes in the environment at key sales and store-opening locations may affect operating results.