Higher Labor Costs Due to Rising Minimum Wages and Labor Shortages
First written in FY2017-Q1. 10 of 19 entries say "Worsened", first in FY2017. Latest entry: FY2025-H1.
Daiichi moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2025: 36 of 59 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2025-H1WorsenedAnnual report
「In addition to increasingly strong consumer preferences for “frugality” and “refraining from purchases” in daily staple food consumption due to prolonged inflation, higher labor costs and other expenses」
Higher labor costs and other expenses continue to be explicitly identified, presenting demand-side difficulties caused by inflation alongside cost pressures. - FY2023WorsenedAnnual report
「The operating environment is expected to remain challenging, with further increases in labor costs, utilities expenses and other costs anticipated.」
Higher labor costs were also reflected in the increase in the SG&A ratio in actual results, and the company states that further increases in labor costs, utilities expenses and other costs are expected going forward. - FY2022WorsenedAnnual report
「In addition to the expected increase in costs due to significant minimum wage increases and soaring raw material prices」
The expected increase in costs due to significant minimum wage increases and soaring raw material prices is explicitly identified as a risk, heightening concerns about rising costs including labor and raw materials. - FY2022-Q2WorsenedAnnual report
「Selling, general and administrative expenses as a percentage of net sales were 21.7%, increasing by 0.4 percentage points year on year due to higher labor costs, increased electricity expenses and temporary costs associated with new store openings, among other factors.」
Higher labor costs were reflected in actual results as a factor behind the 0.4-percentage-point year-on-year increase in the SG&A ratio. - FY2021WorsenedAnnual report
「In the supermarket industry, costs are expected to increase due to higher labor costs and soaring raw material prices amid concerns about the spread of COVID-19. In addition, the operating environment is expected to remain challenging due to continued consumer preferences for low prices and intensifying price competition among companies across industries and business formats.」
The risk of higher costs due to rising labor costs and soaring raw material prices is explicitly identified. - FY2021-Q2RestatedAnnual report
「The operating environment remains challenging due to growing consumer preferences for “low prices” and “household cost savings,” as well as intensifying price competition among companies.」
The latest description of the industry environment does not explicitly mention higher labor costs due to minimum wage increases or labor shortages, but states that the existing risks remain unchanged. - FY2020RestatedAnnual report
「The supermarket industry remained challenging due to slowing consumption following the consumption tax increase, customers’ continued preference for low prices, a growing focus on protecting household finances amid uncertainty about the future, intensifying price competition across industries and business formats, including online retailers and drugstores, and rising labor costs due to labor shortages.」
Higher labor costs due to labor shortages continue to be identified as a factor affecting the industry environment. - FY2019WorsenedAnnual report
「Selling, general and administrative expenses as a percentage of net sales increased by 0.2 percentage points from the same period of the previous year to 22.7%, due to higher labor costs associated with retaining and securing personnel.」
Higher labor costs associated with retaining and securing personnel were reflected in the full-year SG&A ratio, which deteriorated by 0.2 percentage points year on year. - FY2019-Q3RestatedAnnual report
「The gross profit margin improved by 0.3 percentage points year on year to 24.8%, due to lower product procurement costs and maintenance of appropriate inventory levels. Although total personnel expenses increased, SG&A expenses as a percentage of sales improved by 0.2 percentage points to 22.3% due to lower other selling and administrative expenses.」
Although total labor costs continue to increase, the SG&A ratio has improved due to a decline in other selling, general and administrative expenses, while the risk of higher labor costs continues to be described. - FY2019-Q2ReframedAnnual report
「Higher labor costs due to minimum wage revisions and the need to secure required personnel」
The risk description has changed from “higher labor costs due to minimum wage revisions and labor shortages” to higher labor costs associated with securing the required personnel. - FY2019-Q1RestatedAnnual report
「Higher labor costs due to minimum wage revisions and labor shortages」
Higher labor costs against a backdrop of minimum wage revisions and labor shortages continue to be described as part of the industry's challenging operating environment. - FY2018WorsenedAnnual report
「The operating environment remains challenging due to market contraction resulting from population decline and aging, continued consumer preferences for low prices and frugality, growing concerns about labor shortages, and higher labor costs resulting from wage increases.」
Growing concerns about labor shortages and higher labor costs resulting from wage increases continue to pose risks in the industry environment, and the full-year SG&A ratio also deteriorated by 0.3 percentage points from the previous year. - FY2018-Q3WorsenedAnnual report
「Due to higher labor costs resulting from enhanced employee benefits and revisions to the wage structure, among other factors, the ratio to net sales deteriorated by 0.6 percentage points from the same period of the previous year to 22.5%.」
Enhanced employee benefits and revisions to the wage structure were identified as specific factors behind higher labor costs, and the SG&A ratio deteriorated by 0.6 percentage points year on year. - FY2018-Q2WorsenedAnnual report
「The operating environment remains challenging amid growing concerns about labor shortages and related issues.」
Growing concerns about labor shortages were explicitly identified. In addition, higher labor costs caused the SG&A ratio to deteriorate by 0.6 percentage points year on year, with the effects of labor shortages and higher labor costs continuing to be reflected in actual results. - FY2018-Q1MaterialisedAnnual report
「Due to temporary costs associated with new store openings, renovations, relocations and expansions of existing stores, as well as higher labor costs, the ratio to net sales deteriorated by 0.7 percentage points from the same period of the previous year to 21.6%.」
Higher labor costs were reflected in actual results as a factor behind the deterioration in the SG&A ratio, which worsened by 0.7 percentage points year on year. - FY2017WorsenedAnnual report
「Higher labor costs against a backdrop of rising minimum wages, expanded social insurance coverage and labor shortages」
In addition to higher labor costs due to rising minimum wages and labor shortages, the expanded application of social insurance coverage is newly specified. - FY2017-Q3RestatedAnnual report
「Growing consumer preference for frugality driven by concerns about household finances, and higher labor costs against a backdrop of rising minimum wages and labor shortages」
Higher labor costs against a backdrop of rising minimum wages and labor shortages continue to be described as part of the industry's challenging operating environment. - FY2017-Q2RestatedAnnual report
「Growing consumer preference for frugality driven by concerns about household finances, and higher labor costs against a backdrop of rising minimum wages and labor shortages」
Higher labor costs against a backdrop of rising minimum wages and labor shortages continue to be described as part of the industry's challenging operating environment. - FY2017-Q1First statedAnnual report
「Higher labor costs against a backdrop of increases in the minimum wage and labor shortages」
The Company newly identifies higher labor costs resulting from increases in the minimum wage and labor shortages as part of the supermarket industry's challenging operating environment.