Securing and Training Sales Staff and Reflexologists

「In the relaxation salon business, average spending per customer increased following the revision of course prices, but revenue decreased 2.8% year on year due to a decline in customer numbers attributable to staff shortages, among other factors.」

「As consumers’ preference for frugality became more pronounced amid rising prices, demand shifted to shorter courses. Although there were also lost treatment opportunities resulting from store staff shortages, same-store sales remained broadly at the previous fiscal year’s level.」

「In the relaxation salon business, in addition to the impact of salon closures, consumers’ preference for frugality became more pronounced as prices rose. Demand shifted to shorter courses after the second quarter began, and the Company was also unable to make progress in securing store staff. As a result, sales declined 11.0% year on year.」

「In the Curves business, cancellations increased from the previous year after the second half began. However, the Company strengthened support for existing members and pursued re-enrollment initiatives for former members, while the effect of TV commercials by Curves Japan, the franchisor, also contributed. The number of members at fiscal year-end increased by approximately 480 from the end of the previous fiscal year to approximately 9,720. Merchandise sales also grew steadily, led by new products, and sales increased 6.9% from the previous fiscal year despite the continuing staff shortage.」

「Sales of merchandise to members also increased, and sales rose approximately 8% year on year despite the continuing staff shortage.」

「Entering the third quarter, corporate earnings in Japan were generally improving, while consumer spending was supported by rising inbound demand and the boost from higher share prices. Demand for travel-related services and high-priced goods remained firm, and the performance of department stores and other retailers in urban areas also showed signs of recovery. At the same time, the sense of labor shortages grew increasingly acute, particularly in the service industry.」

「Sales increased 8% year on year despite the continuing staff shortage.」

「In the Curves business, the Company strengthened support for existing members and worked to reduce cancellations. Recruitment efforts through TV commercials by Curves Japan, the franchisor, also contributed, resulting in a net increase of approximately 150 members from the end of the previous fiscal year. By setting support targets for existing members and working to understand each member’s circumstances, sales increased approximately 6% year on year despite the continuing staff shortage.」

「In the relaxation salon business, treatments are provided by qualified private-sector reflexologists, making it necessary to secure sufficient reflexologists in line with new store openings. Failure to secure personnel could affect the Company’s operating results.」

「In the relaxation salon business, demand for long courses with extended treatment times remained strong, while the utilization rate of the online booking system among treatment reservations rose further, improving efficiency. However, staffing shortages, including cases of staff contracting COVID-19, contributed to an 8.0% year-on-year decline in sales for the October–December period, while cumulative sales for the current fiscal year increased 1.4% year on year.」

「Sales increased 6.6% year on year despite a continuing staff shortage caused by childcare leave and other factors.」

「In the relaxation salon business, nearly all stores operated shorter hours or partially closed during the same period of the previous year because of the declaration of a state of emergency and other factors. Although operations returned to normal this period, difficult conditions have continued, partly because staff numbers declined due to childcare leave and other factors.」

「Our cosmetics retail business is operated primarily through consulting-based sales, and therefore relies heavily on human effort. Store sales can be affected by the qualities and skills of staff. We focus on consistently implementing consulting-based sales and training staff to maintain service standards, but because store operations are entrusted to very small, relatively young teams, it can be difficult to ensure consistent management. A decline in staff motivation and morale could affect our business performance.」

「However, the outlook became difficult to assess as labor shortages intensified toward year-end, procurement prices rose, particularly for imported raw materials, and COVID-19 variants spread.」

「The previously somewhat insufficient number of salon staff has gradually been secured, and staffing is now almost adequate.」

「In the relaxation salon business, we strengthened sales initiatives and staff training and worked to increase sales and improve communication with customers. However, staffing levels remained unstable throughout the year, and salon operations were difficult because of store closures caused by typhoons and the impact of COVID-19, among other factors.」

「In the relaxation salon business, severe staff shortages continued at some stores, but overall the situation was gradually moving toward resolution. The online reservation system performed well, accounting for approximately 30% of total sales and customer numbers.」

「In the relaxation salon business, staff numbers declined at the beginning of the period, accompanied by a substantial decrease in sales, but gradually recovered as a result of subsequent recruitment efforts. In the Curves business, member cancellations increased in the previous period, but the number of members edged up as a result of strengthened support for existing members and a focus on referrals from existing members. Staffing levels are gradually becoming adequate and staff training is also being strengthened, but sales declined 2.9% year on year because total staff numbers were lower than in the same period of the previous year.」

「In the relaxation salon business, the utilization rate of the online reservation system was rising, but staff numbers declined at the beginning of the current fiscal year and then gradually recovered as recruitment efforts were strengthened. Nevertheless, sales declined 12.1% year on year. In the Curves business, staff numbers also remained somewhat insufficient. Recruitment proceeded generally smoothly, but many staff members were still being trained, so the company focused on supporting existing members to reduce the cancellation rate. However, the number of cancellations exceeded the number of new memberships, and sales declined 1.9% year on year.」

「As a result, the previously identified staffing shortage was gradually resolved. In the Curves business, we partially reorganized the organization and worked to enhance staff development and training. However, the staffing shortage was not resolved.」

「Although consumer sentiment, which had weakened because of a succession of natural disasters and other factors, was beginning to recover, profitability conditions in the retail industry became increasingly difficult because of labor shortages and soaring labor costs. Competition within the industry, including with online retailers, also intensified, resulting in an increasingly pronounced divergence between winners and losers.」

「However, profitability conditions are becoming increasingly polarized as labor and logistics-related costs rise due to labor shortages.」

「Although the shortage of treatment staff, previously an issue, is gradually being resolved by reallocating staff from closed stores, sales declined 6.1% year on year due to fewer stores and customers, among other factors.」

「During the first quarter, the domestic economy remained on a moderate recovery trend, with improvements in corporate earnings and employment conditions despite concerns including the worsening labor shortage and uncertain conditions overseas.」

「In the relaxation salon business, we focused on resolving the shortage of salon staff and worked to strengthen training programs and improve store operations to develop staff and improve retention. As a result, staffing levels have gradually become adequate, and customer numbers, which had been declining, have begun to show signs of recovery.」

「In the relaxation salon business, we worked to expand and strengthen the staff base and attract more customers by introducing menus exclusively for new customers and differentiating our salons through the use of House of Rose body care products. However, sales declined 7.2% year on year due to the closure of unprofitable stores and a decrease in customer numbers, among other factors.」

「Sales declined 8.5% year on year due to a shortage of treatment staff and a decrease in customer numbers.」

「Securing and developing personnel involved in sales and operations」