Sluggish Domestic Consumption and Intensifying Competition
First written in FY2016. 13 of 31 entries say "Restated". Latest entry: FY2026.
Tabaya Holdings moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 3 of 7 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Over the long term, the domestic apparel market is expected to contract gradually due to the effects of the declining birthrate, an aging population and population decline.」
Separate from the recent recovery in personal consumption, the long-term contraction of the domestic apparel market due to the declining birthrate, an aging population and population decline continues to be identified as a major structural risk to the domestic consumption and competitive environment. - FY2026-H1WorsenedAnnual report
「The apparel retail industry faces a difficult operating environment, with expectations that wage increases will boost consumption, but also risks of weaker consumer sentiment due to higher raw-material and labour costs and persistent inflation, as well as delays in autumn demand resulting from record heat.」
Although expectations for a recovery in personal consumption were indicated, the challenging conditions in the domestic apparel market were highlighted as higher costs, rising prices, concerns about weaker consumer sentiment and delayed demand for fall apparel due to extreme heat coincided. - FY2025WorsenedAnnual report
「The domestic apparel market has been recovering since COVID-19 was reclassified as a Class 5 infectious disease, but over the long term it is expected to contract gradually due to the effects of the declining birthrate, an aging population and population decline.」
Separate from the recent recovery, the long-term contraction of the domestic apparel market due to the declining birthrate, an aging population and population decline was identified as a risk to the domestic consumption and competitive environment. - FY2024MitigatedAnnual report
「Although the apparel retail industry faced a challenging business environment due to higher raw material prices, the weaker yen, extreme heat and a warm winter, among other factors, it remained relatively firm, supported by the recovery in personal consumption.」
Although higher raw material prices, the weaker yen and weather-related factors remained, the domestic consumption and physical-store sales environment improved from the previously challenging conditions during the COVID-19 pandemic, supported by the recovery in personal consumption. - FY2024-Q2MitigatedAnnual report
「In the apparel retail industry, demand for going out and personal consumption remained firm despite the continuing effects of higher raw material prices and the weaker yen. The business environment remained solid as human mobility recovered and inbound demand expanded.」
Although the effects of higher raw material prices and the weaker yen remained, demand for going out, personal consumption, human mobility and inbound demand remained firm, and the domestic consumption and physical-store sales environment improved. - FY2024-Q1MitigatedAnnual report
「The business environment remained firm, with demand for going out and consumer sentiment improving, while inbound demand also recovered.」
The domestic consumption and physical-store sales environment improved as demand for going out, consumer sentiment and inbound demand recovered. However, the impact of higher raw material prices and exchange-rate fluctuations remains. - FY2023RestatedAnnual report
「During the current consolidated fiscal year, the Japanese economy began to recover moderately as socioeconomic activity moved toward normalization following the easing of restrictions on activities in response to COVID-19. Meanwhile, uncertainty about the outlook continued due to rising prices resulting from higher raw material prices and the weaker yen, as well as increasing recession risks in countries around the world.」
Although human mobility recovered and personal consumption improved, the challenging consumption environment continued due to higher raw material prices, the weaker yen, rising prices and recession risks. - FY2023-Q3RestatedAnnual report
「In the apparel retail industry, the business environment improved, with increased traffic to physical stores and a recovery in personal consumption. However, as in the domestic economy, the challenging business environment continued due to the effects of higher raw material prices and the weaker yen, as well as concerns about weaker consumer sentiment resulting from rising prices.」
Although store traffic increased and personal consumption recovered, concerns about weaker consumer sentiment due to higher raw material prices, the weaker yen and rising prices remained, and the challenging consumption and competitive environment continued. - FY2023-Q2RestatedAnnual report
「Although personal consumption showed signs of improvement, the challenging business environment continued, including concerns about weaker consumer sentiment resulting from higher raw material prices, the weaker yen and rising prices.」
Although personal consumption improved, concerns about weaker consumer sentiment due to rising prices, the weaker yen and higher raw material prices, as well as the challenging business environment, continued. - FY2022-Q3WorsenedAnnual report
「However, uncertainty about the outlook continues, as new variants have become widespread around the world.」
Although personal consumption recovered after the state of emergency was lifted, the consumption environment remains uncertain due to new variants. - FY2022-Q2RestatedAnnual report
「During the second quarter of the current fiscal year, the Japanese economy remained in a challenging situation, as the impact of the continued spread of COVID-19 prolonged weakness in employment conditions and personal consumption.」
Weak employment conditions and personal consumption resulting from the prolonged spread of COVID-19, together with the challenging consumption environment surrounding apparel retail, continued. - FY2022-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, the Japanese economy remained in a very challenging situation, with weak corporate earnings, particularly among non-manufacturers, and a weak employment situation continuing as the spread of COVID-19 persisted, while the recovery in consumer sentiment remained slow. The apparel retail industry also continued to face an extremely challenging business environment, including physical-store closures and reduced operating hours following the declaration of a state of emergency, as well as sluggish traffic to physical stores due to people refraining from going out.」
The challenging consumption and physical-store sales environment continued, with a slow recovery in consumer sentiment, physical-store closures and reduced operating hours, and sluggish store traffic due to people refraining from going out. - FY2021WorsenedAnnual report
「Due to the spread of COVID-19, an extremely challenging environment has continued, including physical-store closures associated with states of emergency, a sharp decline in inbound demand, weakening consumer sentiment and declining traffic to physical stores as behaviors aimed at avoiding crowded places became more widespread. This risk can be said to have materialized rapidly.」
Physical-store closures, a sharp decline in inbound demand, weaker consumer sentiment and declining store traffic occurred simultaneously, and the risk to the domestic consumption and competitive environment was described as having materialized rapidly. - FY2021-Q3WorsenedAnnual report
「The apparel retail industry continues to face an extremely difficult environment, including the closure of physical stores associated with the government's state of emergency declaration, a rapid decline in inbound demand, weak consumer sentiment due to concerns about income, and fewer store visits due to the spread of behaviour to avoid crowded places and the resurgence of infections.」
In addition to physical-store closures, lower inbound demand and concerns about income, the renewed spread of infections and declining store traffic were identified, and the challenging consumption environment surrounding domestic physical-store sales continues. - FY2021-Q2WorsenedAnnual report
「The apparel retail industry faced an extremely difficult environment, including the closure of physical stores associated with the government's state of emergency declaration, a rapid decline in inbound demand, weak consumer sentiment due to concerns about income, and fewer store visits as behaviour to avoid crowded places became more widespread.」
The closure of physical stores, a sharp decline in inbound demand, concerns about income and a decline in store traffic were all identified, and the deterioration in the domestic consumption and physical-store sales environment has continued from the previous quarter. - FY2021-Q1WorsenedAnnual report
「Same-store sales at retail stores were 36.3% of the same period of the previous year due to the closure of physical stores. However, same-store online sales increased substantially to 139.6%, supported by inventory consolidation and stronger promotions.」
Due to the impact of COVID-19, same-store sales at physical stores fell to 36.3% of the same period of the previous year, while combined same-store sales for retail stores and online sales were 63.0%. Downward pressure on domestic physical-store sales and the consumption environment intensified in the results. - FY2020MaterialisedAnnual report
「Same-store sales at retail stores were 92.4% of the previous fiscal year’s level due to a warm winter and the spread of COVID-19, among other factors. However, same-store online sales increased by double digits to 116.8%, as the impact of COVID-19 and other factors was limited.」
Due to the warm winter and the impact of COVID-19, same-store sales at physical stores were 92.4% of the previous fiscal year’s level, resulting in downward pressure on domestic consumption and physical-store sales. - FY2020-Q3WorsenedAnnual report
「In the apparel retail industry, demand for businesswear expanded as more women entered the workforce, online sales grew and there was a rush of demand ahead of the consumption tax increase, while consumer sentiment weakened due to unstable weather, natural disasters, the backlash following the consumption tax increase and pension issues, and customers continued to purchase cautiously.」
The after-effects of the consumption tax increase, natural disasters and pension issues, among other factors, were added as factors weakening consumer sentiment, and cautious purchasing behavior continued. - FY2020-Q2RestatedAnnual report
「In the apparel retail industry, demand for businesswear expanded as more women entered the workforce and online sales grew, while consumer sentiment weakened due to unstable weather, the consumption tax increase from October 2019 and pension issues, and customers continued to purchase cautiously.」
Unstable weather, the consumption tax increase from October 2019 and pension issues continue to be identified as factors weighing on consumer sentiment. Cautious purchasing behavior also continues. - FY2020-Q1WorsenedAnnual report
「In the apparel retail industry, demand for businesswear expanded as more women entered the workforce and online sales increased, among other positive developments. However, consumer sentiment weakened due to unstable weather, the consumption tax increase scheduled for October, pension issues and other factors, while consumers’ cautious purchasing behavior continued.」
In addition to the existing preference for thrift and cautious purchasing behavior, unstable weather, the consumption tax increase scheduled for October and pension issues were identified as factors weighing on consumer sentiment. - FY2019MaterialisedAnnual report
「Consumers’ increasing preference for thrift and cautious purchasing behavior continued, in addition to stagnant demand for autumn and winter apparel due to record heat and a warm winter.」
Weather-related stagnation in demand for autumn and winter apparel, together with consumers’ preference for thrift and cautious purchasing behavior, occurred and continued throughout the fiscal year as characteristics of the consumption environment. - FY2019-Q3WorsenedAnnual report
「In the apparel retail industry, tax-free demand from visitors to Japan and online sales continued to expand, while demand for autumn and winter merchandise stagnated amid record heat and a mild winter, and customers continued to show a stronger propensity to economize and cautious purchasing behaviour.」
In addition to the previously identified delay in demand for fall apparel due to record heat, stagnation in demand for autumn and winter apparel due to a warm winter was identified, indicating that weather-related pressure on the consumption environment has broadened. - FY2019-Q2RestatedAnnual report
「In the apparel retail industry, tax-free demand from visitors to Japan increased and online sales expanded, among other positive developments. However, in addition to delayed demand for fall apparel due to record heat, consumers’ increasing preference for thrift and cautious purchasing behavior continued.」
Although tax-free demand and online sales expanded, delayed demand for fall apparel due to record heat, consumers’ preference for thrift and cautious purchasing behavior continued. - FY2019-Q1RestatedAnnual report
「In the apparel retail industry, tax-free demand from visitors to Japan increased and online sales expanded, among other positive developments. However, consumers’ increasing preference for thrift and cautious purchasing behavior continued.」
Although tax-free demand and online sales expanded, consumers’ preference for thrift and cautious purchasing behavior continued. - FY2018-Q3RestatedAnnual report
「In the apparel retail industry, tax-free demand from visitors to Japan recovered, purchases by affluent consumers became more active as share prices rose, and online sales expanded, among other positive developments. However, wage and disposable income growth remained sluggish, while consumers’ increasing preference for thrift and cautious purchasing behavior continued.」
Although tax-free demand, purchases by affluent consumers and expanding online sales provided recovery factors, sluggish wage and disposable income growth, a preference for thrift and cautious purchasing behavior continued. - FY2018-Q2RestatedAnnual report
「In the apparel retail industry, tax-free demand from visitors to Japan recovered and online sales expanded, among other positive developments. However, wage and disposable income growth remained sluggish, while consumers’ increasing preference for thrift and cautious purchasing behavior continued.」
Although tax-free demand and expanding online sales provided recovery factors, the consumption environment remained challenging, with sluggish wage and disposable income growth, a preference for thrift and cautious purchasing behavior continuing. - FY2018-Q1RestatedAnnual report
「In the apparel retail industry, tax-free demand from visitors to Japan recovered and online sales expanded, among other positive developments. However, consumers’ preference for thrift and cautious purchasing behavior continued, resulting in sluggish consumption trends.」
While the recovery factors of tax-free demand and online sales are cited, consumers’ preference for thrift and cautious purchasing behavior and sluggish consumption trends are described as continuing. - FY2017-Q3RestatedAnnual report
「In the apparel retail industry, consumers’ preference for thrift and cautious purchasing behavior have continued against a backdrop of rising consumer prices and concerns about economic conditions. In particular, from late summer through autumn, unstable weather, including temperatures remaining higher than usual and successive typhoons making landfall, weighed on apparel consumption. Although some recovery was seen as temperatures fell from November onward, the situation remained extremely challenging.」
The challenging business environment is described as continuing, with consumers’ preference for thrift and cautious purchasing behavior and unstable weather continuing to affect apparel consumption. - FY2017-Q2RestatedAnnual report
「In the apparel retail industry, consumers’ preference for thrift and cautious purchasing behavior have continued against a backdrop of rising consumer prices and concerns about economic conditions. The situation remains extremely challenging, as unstable weather, including temperatures remaining higher than usual and successive typhoons making landfall, delayed demand for fall apparel.」
The extremely challenging business environment is described as continuing, with consumers’ preference for thrift and cautious purchasing behavior and weather-related delays in demand for fall apparel. - FY2017-Q1WorsenedAnnual report
「The situation remains extremely challenging, with department store sales continuing to fall below the previous year due to weak demand from visitors to Japan and poor performance in high-priced products and apparel, among other factors.」
The consumption and competitive environment is described as increasingly challenging, with consumers’ preference for thrift and cautious purchasing behavior, weak demand from visitors to Japan, and poor performance in high-priced products and apparel, among other factors. - FY2016First statedAnnual report
「Sales may be affected by sluggish consumption resulting from stagnation in the Japanese economy due to an increase in the consumption tax and unseasonable weather, among other factors; fluctuations in consumption trends arising from demographic changes and other factors; and intensified competition with other companies resulting from the globalization of markets and the entry of new companies, among other factors.」
With store operations concentrated in Japan, the Group identifies the consumption environment, demographic changes, globalization and new market entrants as factors that may cause sales to fluctuate.