Intensifying competition with industry peers and changing consumer trends

「In Hokkaido, which serves as the Company's operating base, the economy showed signs of recovery due to stronger tourism demand and increased capital investment. However, as prices continue to rise, consumers remain focused on saving, and their efforts to protect household finances remain elevated.」

「In Hokkaido, consumer efforts to protect household finances remained elevated due to continued inflation. Competition with industry peers also intensified, and the operating environment surrounding the Company is expected to remain difficult amid various cost increases.」

「Meanwhile, consumer efforts to protect household finances remained elevated as inflation caused by soaring energy prices due to unstable international conditions and rising labor and logistics costs continued.」

「Meanwhile, consumer efforts to protect household finances have increased further amid inflation caused by soaring energy prices due to unstable international conditions, rising labor and logistics costs, and sluggish growth in real wages.」

「During the cumulative third quarter, economic activity in Japan and Hokkaido normalized as socioeconomic activity recovered following the downgrading of COVID-19's classification, and the economy continued to show signs of recovery. Meanwhile, consumer efforts to protect household finances remained elevated due to inflation caused by soaring energy and raw material prices.」

「During the cumulative first quarter, economic activity in Japan and Hokkaido showed signs of recovery as socioeconomic activity became more active following a review of measures against COVID-19 and the downgrading of its classification under the Infectious Diseases Act. Meanwhile, the outlook remained uncertain as raw material prices rose and energy costs remained high, while consumer efforts to protect household finances continued at elevated levels.」

「During the fiscal year, economic activity in Japan and Hokkaido showed signs of recovery as restrictions on activities were eased, social events resumed, willingness to go out increased and inbound demand recovered, although the effects of COVID-19 remained. Meanwhile, the outlook remained uncertain as the prolonged deterioration in the situation between Russia and Ukraine and sharp fluctuations in foreign exchange rates drove up raw material prices and energy costs, and consumer efforts to protect household finances increased further.」

「Economic activity in Hokkaido showed signs of recovery as restrictions on activities were eased, social events resumed and willingness to go out increased, although the effects of COVID-19 continued. Meanwhile, the outlook remains uncertain as rapid yen depreciation and the prolonged deterioration in the situation between Russia and Ukraine have driven up raw material prices and energy costs, and consumer efforts to protect household finances have increased further.」

「Meanwhile, the outlook remains uncertain as raw material prices have soared due to rapid yen depreciation and the prolonged deterioration in the situation between Russia and Ukraine, while fuel prices have remained high and consumer efforts to protect household finances have increased further.」

「Meanwhile, the outlook remains uncertain due to soaring raw material prices caused by high crude oil prices and adverse weather conditions, higher import costs due to yen depreciation, and the impact of the situation between Russia and Ukraine, while consumer efforts to protect household finances are increasing further.」

「The spread and prolonged course of COVID-19 have accelerated changes in the operating environment. In addition to various management challenges that had already emerged, including an earlier decline in the birth rate, population aging and population decline than in the rest of Japan, market contraction and labor shortages, consumer behavior changed significantly, including fewer customers due to requests to refrain from going out, the shift to smaller trading areas, and lower demand for eating out and apparel. Although the food market, which is essential to daily life, has remained solid, it has become an increasingly important product category as demand for at-home dining expands, and competition across different business formats is also increasing.」

「However, the outlook remains uncertain due to the global spread of variants, soaring crude oil prices and yen depreciation, and consumer awareness of the need to protect household finances is expected to remain elevated.」

「Although the food market, which is essential to daily life, has remained solid as the overall retail market shrinks, it has become an increasingly important product category as demand for at-home dining expands, and competition across different business formats is also increasing.」

「Hokkaido is experiencing declining birth rates, population aging and population decline at a faster pace than the national average, and faces various management challenges in the retail sector, including market contraction and labor shortages. Meanwhile, although the overall retail market is shrinking, the food market, which is essential to daily life, remains solid, and competition across different business formats is expanding for the promising market.」

「The outlook remains uncertain, with consumer sentiment weakening amid rising food prices and the consumption tax increase, leaving the situation difficult to predict.」

「Consumer sentiment declined amid unprecedented conditions, including disruptions to logistics networks and food shortages caused by the Hokkaido Eastern Iburi Earthquake and the resulting power outage across Hokkaido, and remained depressed thereafter, creating an extremely difficult situation.」

「The business environment surrounding the Company during the third quarter was extremely difficult, as unsettled weather since the summer, the September Hokkaido Eastern Iburi Earthquake, a downturn in consumer sentiment following the disaster and an unprecedented delay in snowfall combined to weigh on conditions.」

「As Hokkaido's population declines at a faster pace than the national average, population concentration in Sapporo is accelerating, while major market changes are taking place, including the rapid shift toward an aging society and a digital society. Against this backdrop, competition across different business formats is expected to become even more intense.」

「The Company's operating results, financial condition and other matters may be affected by trends in personal consumption, adverse weather conditions, and competition among stores across different business formats in the regions that form its operating base.」