Profitability and Property-Securing Risks Associated with New Store Openings
First written in FY2018. 3 of 6 entries say "Mitigated", first in FY2020-Q2. Latest entry: FY2024.
Mtg moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2018: 8 of 35 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「For asset groups whose profit or loss from operating activities has been continuously negative or is expected to remain continuously negative, we reduced the carrying amount to the recoverable amount and recognized the reduction as an impairment loss under extraordinary losses.」
The company recognized ¥82 million in impairment losses on store assets, and store profitability and asset recovery risk materialized as an actual loss. - FY2023MitigatedAnnual report
「For the fiscal year, net sales were ¥14,665 million, up 32.3% year on year, and ordinary profit was ¥1,488 million, up 98.0%.」
The retail store business recorded higher sales and profit, while impairment losses on store assets and other assets fell from ¥294 million in the previous fiscal year to ¥1 million in the current fiscal year. - FY2022MaterialisedAnnual report
「For asset groups whose profit or loss from operating activities has been continuously negative or is expected to remain continuously negative, we reduced the carrying amount to the recoverable amount and recognized the reduction as an impairment loss under extraordinary losses.」
Store profitability risk materialized as impairment losses of ¥91 million in the retail store business and ¥200 million in the sports gym business, among others. - FY2021MitigatedAnnual report
「We are adjusting the number of stores based on opening and closing criteria that take store-level profitability into account, while working to reduce risk.」
In addition to ensuring profitability at each store, the company has stated a policy of adjusting the number of stores based on opening and closing criteria covering both new openings and closures. - FY2020-Q2MitigatedAnnual report
「By closing existing stores with low profitability, we reduced the long-term scale of losses.」
The company closed unprofitable stores and took measures to reduce the long-term extent of losses arising from failure to achieve profitability at individual stores. - FY2018First statedAnnual report
「Our group is actively opening stores operated by our group in department stores, duty-free stores, shopping centers and mass retailers. While ensuring profitability on a store-by-store basis, we are increasing the number of stores by extending successful practices across the network and working to reduce risk.」
The company identifies the inability to secure properties that meet opening conditions and failure to achieve profitability after opening as risks, and uses store-level profitability and the rollout of successful practices as countermeasures.