Declining In-Store Promotions and Delayed Margin Improvement During the Commercial and Logistics Transition
First written in FY2017-Q1. 2 of 3 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2017.
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- FY2017WorsenedAnnual report
「In connection with the transfer of the business to Lawson-Poplar stores, temporarily incurred costs, including the disposal of inventory products and compensation for employees' paid leave, increased and became a factor pushing down operating profit.」
It was reported that, in addition to the disposal of old inventory, temporary costs such as compensation for employees' paid leave arose in connection with the logistics and business transition, increasing expenses and reducing operating profit. - FY2017-Q2WorsenedAnnual report
「For the six months ended 31 August, the relevant categories, including rice balls and desserts, exceeded the previous year's levels through meal innovation. However, in dry goods, including beverages, alcohol, processed foods, and sundries, where joint procurement with Lawson had begun, profit fell below plan because disposal costs for old inventory arose during the transition to joint procurement and in-store promotions during the transition period declined more than expected.」
Risks associated with the transition to joint procurement and commercial goods logistics continued to materialise. In addition to the decline in conventional in-store promotions, disposal costs for old inventory were incurred, resulting in profit falling below plan. - FY2017-Q1MaterialisedAnnual report
「In the dry-goods categories, including beverages, alcoholic beverages, processed foods and general merchandise, where joint procurement with Lawson began, in-store promotions declined more than expected during the commercial and logistics transition. This delayed improvement in gross margins and caused profit to fall below plan.」
During the transition to joint procurement and commercial logistics, in-store promotions declined more than expected and margin improvement was delayed, resulting in profit falling below plan.