Future Labor Shortages

「However, the company's performance may be affected if its hiring plans do not progress as scheduled due to tightening labor supply and demand associated with the declining birthrate and aging population, if employee-related costs increase due to cost pressures, or if its initiatives and information disclosure concerning investments in human capital are deemed insufficient.」

「As part of its productivity improvement initiatives, the company continued to promote the introduction of electronic shelf labels, self-checkout and touch-screen monitors called “CI Boards,” which it had been implementing. These measures improved operating efficiency, bringing total labor hours at existing stores to 97.9% of the year-earlier level.」

「Regarding the transition to and establishment of new operations, self-checkout counters and electronic shelf labels continued to be introduced to improve productivity, while the Mobile Assistant system, which enables store real-time information to be accessed easily and quickly using information devices, was introduced at all stores. Use of the system improved operational efficiency and contributed to better sales-floor maintenance and enhanced customer service. Through these initiatives, total labor hours were reduced to 98.8% of the previous fiscal year's level at existing stores.」

「Regarding the transition to and establishment of new operations, self-checkout counters were introduced to improve productivity, along with a system enabling the automatic creation of work schedules using AI. Through these initiatives, total labor hours per store were reduced to 98.8% of the level in the same period of the previous year.」

「A system enabling the automatic creation of work schedules using AI was introduced in the food checkout departments of 127 stores.」

「Through various initiatives, including efforts to improve operational efficiency, the company is targeting a 2% improvement in total labor hours for the current fiscal year compared with the previous fiscal year, and achieved a 1% improvement compared with the same period of the previous year.」

「To improve productivity, electronic shelf labels were installed at 5 stores during the cumulative first-quarter period. In addition, self-checkout counters were newly installed or added at 12 stores during the cumulative first-quarter period, bringing the cumulative total to 116 stores, and total labor hours were reduced to 98.6% of the level in the same period of the previous year through greater operational efficiency.」

「Regarding the reform of the earnings structure, electronic shelf labels were installed at 6 stores during the fiscal year to improve productivity.」

「As an upfront investment in response to future labor shortages, electronic shelf labels had been installed at 6 stores, including the new MaxValu Otokke store, by the end of the third quarter.」

「Selling, general and administrative expenses were ¥93,474 million (103.3% of the previous fiscal year's level), due to the impact of proactive investments, including the establishment of AEON Ishikari PC, store revitalization and the introduction of self-checkout counters, as well as higher costs resulting from increased unit prices for labor, utilities and other expenses.」

「Selling, general and administrative expenses were 142.6% of the level in the same period of the previous year, as the company made planned investments, including new stores and store revitalization, while reducing business travel expenses and flyer expenses due to the impact of COVID-19.」

「In terms of profit, costs increased for preparations for the integration with マックスバリュ北海道株式会社, IT investments such as ordering systems, and labor costs resulting from the minimum wage increase. However, the company was able to hold selling, general and administrative expenses to 100.4% of the level in the same period of the previous year, helped by reductions in land and building rents, selling expenses and other costs.」

「In terms of profit, gross profit increased to ¥51,546 million (100.2% year on year) as the gross margin improved for the fourth consecutive period. Meanwhile, selling, general and administrative expenses were 100.5% of the previous fiscal year's level due to higher costs, including labor and utility expenses, and increased equipment expenses from planned investments, resulting in operating profit of ¥8,225 million (95.7% year on year).」

「Although selling, general and administrative expenses increased due to higher minimum wages and electricity rates, rent and other costs were reduced through property acquisitions and promotional and other expenses were controlled. Operating profit for the third quarter accounted for ¥1.824 billion, an increase of ¥151 million.」

「Operating profit was ¥3,111 million (89.8% year on year), as selling, general and administrative expenses increased due to higher labor costs resulting from the minimum wage increase, higher equipment expenses from planned investments for the future, including system investments, and other factors.」

「Hokkaido's economy recovered moderately in the first quarter, and personal consumption also showed signs of recovery. However, the retail sector remains in an uncertain situation, with unfavorable weather, higher fuel unit prices and delivery costs, and rising labor costs resulting from labor shortages occurring simultaneously.」

「The situation remains difficult, with labor costs continuing to rise amid a chronic labor shortage.」

「The Company will create an environment in which employees can continue working and move forward with measures to address future labor shortages.」