Weak store sales due to the leveling off of demand for heated tobacco products and lower-than-expected special demand ahead of tobacco price increases, among other factors

「Although economic policies such as the government's Go To Campaign and temporary stockpiling demand resulting from tobacco price increases temporarily boosted sales, the spread of COVID-19 during the second and third waves increasingly discouraged people from going out, and weak consumption has continued again.」

「In addition, because the previous year's price increases and strong tobacco sales, driven by heated tobacco products, lifted total sales by 1.1% year on year, chain sales at existing stores for the first quarter of the current consolidated cumulative period were 100.0% of the same period of the previous year.」

「In addition, same-store sales remained sluggish at 97.7% of the previous year, due to the completion of demand for heated tobacco kits, September's tobacco price increase-related rush demand falling well below expectations, the expected decline in October following that demand, and sluggish growth in gift-card sales.」

「Store sales during the cumulative third quarter ended 31 December were affected significantly by disasters and unseasonable weather, a year-on-year decline in tobacco sales as demand for heated tobacco kits, which had been strong in the previous year, reached a plateau, and September's surge in demand ahead of the tobacco price increase falling far short of expectations, although the decline in October was in line with expectations. In addition, sluggish gift card sales and weak magazine sales meant that same-store sales were limited to 97.5% of the previous year's level.」