Impact of COVID-19 on Store Closures, the Sharp Decline in Consumption, and Performance
First written in FY2020. 5 of 18 entries say "Restated". Latest entry: FY2025.
Sanyo Shokai moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 69 of 91 companies on the "Worse" side.
34 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Having learned from the global COVID-19 pandemic, our Group is taking measures to ensure employee safety and business continuity. However, if a new infectious disease emerges or resurges, resulting in restrictions on store operations, weaker consumer sentiment, disruption to the supply chain or other effects,」
Rather than describing the current risk of store closures and a sharp decline in consumption due to COVID-19, it identifies the emergence or resurgence of a new infectious disease as a conditional material risk, based on the lessons learned from that infection. - FY2025-Q1SoftenedAnnual report
「During the cumulative first quarter ended 31 May 2024 (1 March 2024 to 31 May 2024), Japan's economy continued to recover moderately after emerging from the effects of the three-year COVID-19 pandemic, despite the impact of higher prices caused by yen depreciation and surging resource prices.」
The risk assessment has shifted from the previous focus on store closures and a sharp decline in consumption due to COVID-19 to recognition that the economic environment has emerged from the effects of the 3-year pandemic. - FY2024ReframedAnnual report
「Having learned from COVID-19, our Group will continue to take stakeholders’ safety into consideration and prepare for unforeseen circumstances. However, if an unforeseeable viral infectious disease or other condition spreads and causes market stagnation or other effects, this could affect our Group’s financial position, results of operations and cash flows.」
The description has been reorganized from the current risk of store closures and a sharp decline in consumption due to COVID-19 into a conditional risk concerning preparations for unforeseeable future viral infectious diseases and other conditions, based on the lessons learned from COVID-19. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter ended 31 August 2023 (1 March 2023 to 31 August 2023), Japan's economy continued to recover moderately despite the ongoing effects of yen depreciation and high resource prices, as the impact of COVID-19 eased further following its reclassification to Category 5 and normalization progressed.」
It states that the effects of COVID-19 have eased further and normalization has progressed since the transition to Category 5, continuing from the previous quarter to present both reduced infection risk and a recovery trend. - FY2024-Q1SoftenedAnnual report
「The effects of COVID-19 have continued on a gradual recovery trend as they eased further following the transition to Category 5 under the Infectious Disease Control Law.」
Although the effects of COVID-19 remain, they have eased further following the transition to Category 5, and the description has shifted to indicate that the economic and consumption environment is on a recovery trend. - FY2023SoftenedAnnual report
「COVID-19 is currently moving toward subsiding. While monitoring developments, our Group will continue strengthening safety measures for stakeholders and preparing for unforeseen circumstances. However, if the infection again becomes widespread and causes market stagnation or other effects, this could affect our Group’s financial position, results of operations and cash flows.」
As the infection moves toward subsiding, the description has shifted from the current risk of physical-store closures and a sharp decline in consumption to a conditional risk concerning the potential impact of another outbreak. - FY2023-Q3SoftenedAnnual report
「Although the effects of COVID-19 persist, market conditions have generally improved, partly because no restrictions involving behavioral limitations were imposed during the period. From October onward, inbound demand also remained on a recovery trend as entry restrictions were eased, contributing to improved market conditions.」
It states that although the effects of the infection remained, there were no restrictions involving behavioral limitations, market conditions generally improved, and inbound demand entered a recovery trend. - FY2023-Q2RestatedAnnual report
「Although customer traffic at physical stores declined following the renewed spread of COVID-19 from mid-July, market conditions remained on a recovery track well above the previous year throughout the period, partly because restrictions leading to limits on activities and going out were eased.」
It describes the coexistence of adverse and recovery factors: the seventh wave of COVID-19 caused a decline in visitors to physical stores, while easing restrictions put market conditions on a recovery track that substantially exceeded the previous year. - FY2023-Q1SoftenedAnnual report
「In the fiscal year ending February 2023, COVID-19, primarily in the form of Omicron subvariants, continued, but there were signs of improvement as restrictions such as priority preventive measures to prevent the spread of disease continued to be lifted, while」
It states that although infections from Omicron subvariants continued, restrictions such as priority preventive measures to prevent the spread of disease continued to be lifted, creating signs of improvement in the effects of the infection on stores and consumption. - FY2022WorsenedAnnual report
「However, renewed deterioration in trading conditions due to the rapid spread of the Omicron variant caused net sales in January and February of this year to fall substantially below plan. As a result, cumulative net sales for the current consolidated fiscal year fell short of plan.」
It states that, with respect to the risk from COVID-19, the rapid spread of the Omicron variant caused net sales in January and February to fall substantially below plan, resulting in the full-year plan not being achieved. - FY2022-Q3RestatedAnnual report
「In the current consolidated fiscal year, although second-dose vaccinations made substantial progress toward bringing COVID-19 under control, the Omicron variant emerged. While the state of emergency was lifted at the end of September, it is expected to take time to recover to pre-pandemic conditions.」
While describing vaccination progress and improvement following the lifting of the state of emergency, it also points to the emergence of the Omicron variant and the prolonged recovery to pre-pandemic levels, continuing to present business-performance risks from COVID-19. - FY2022-Q2WorsenedAnnual report
「Under these difficult conditions, our main sales channels, particularly department stores, were fully affected by fewer customers due to requests to refrain from going out and by store closures, and sluggish sales continued throughout the period.」
It states that the effects of requests to refrain from going out, fewer customers and store closures due to COVID-19 continued throughout the quarter, and that sales remained sluggish, particularly in department stores, our main sales channel. It also mentions the fourth and fifth waves and the expansion of areas subject to states of emergency. - FY2022-Q1WorsenedAnnual report
「Even now, in the fiscal year ending February 2022, COVID-19 has not yet subsided. Although vaccination is progressing, the spread of more infectious variants means that the recovery of the real economy will still take time, and the Company continues to incur operating losses due to fewer visitors resulting from the closure of physical stores and other factors.」
Regarding COVID-19, it describes the spread of variants, the prolonged recovery of the real economy, and the continued decline in visitors and operating losses resulting from the closure of physical stores and other factors, indicating that the impact of the infection is becoming more specific and prolonged. - FY2021WorsenedAnnual report
「In the fiscal year ended February 2021, COVID-19 and the declaration of a state of emergency, among other factors, resulted in an operating loss and negative operating cash flow due to fewer visitors to physical stores.」
It states that the effects of COVID-19, including store closures and fewer visitors, resulted in an operating loss and negative operating cash flow for the full fiscal year. - FY2021-Q3WorsenedAnnual report
「In the current consolidated fiscal year, a substantial decline in sales opportunities occurred in the first quarter as a result of store closures due to COVID-19, and extremely difficult economic conditions have continued. In addition, amid concerns over a renewed spread of infections, including the declaration of a state of emergency by the Government for 1 metropolitan area and 3 prefectures on 7 January 2021, conditions in the immediate term have remained weak. The pace of recovery is expected to remain slow for the time being, and the outlook is uncertain.」
In addition to the decline in sales opportunities caused by first-quarter store closures, it describes concerns over a renewed spread of infections, the state of emergency declared in January 2021, weak conditions in the immediate term, and expectations of a prolonged recovery, making the business-performance risk from COVID-19 more specific. - FY2021-Q2RestatedAnnual report
「However, at the physical stores operated by the Company, mainly in department stores, the number of visitors continued to decline year on year because of store closures following the declaration of a state of emergency and consumer sentiment aimed at avoiding the “3 Cs,” resulting in a substantial decline in net sales.」
It states that store closures resulting from the state of emergency and consumer sentiment aimed at avoiding the “3 Cs” have continued to reduce visitor numbers at physical stores and substantially reduce net sales. - FY2021-Q1MaterialisedAnnual report
「However, at the physical stores operated by the Company, mainly in department stores, extremely difficult conditions continued, including store closures lasting approximately 2 months following the declaration of a state of emergency, resulting in a substantial decline in net sales.」
It states that the previously identified risks of store closures and fewer visitors due to COVID-19 materialized, resulting in a substantial decline in physical-store net sales. It also recorded an extraordinary loss of ¥1,364 million, including fixed costs associated with approximately 2 months of closures. - FY2020First statedAnnual report
「Amid the worldwide spread of COVID-19, which has taken on pandemic proportions, and uncertainty over when the spread will subside, the Government declared a state of emergency on 7 April 2020. As a result, department stores and commercial facilities, which are our main sales channels, voluntarily suspended operations, while directly operated stores run by the Company also took the initiative to close temporarily. Consequently, with the exception of our e-commerce channel, most of our main sales locations were temporarily closed, and the direct impact on economic activity has made it difficult to reasonably calculate the effect on our business performance.」
The spread of COVID-19, the state of emergency, and the closure of department stores, commercial facilities and directly operated stores are described separately as new risks affecting the main sales channels and business performance. It also states that, in the following fiscal year, an operating loss and negative operating cash flow had already arisen from the decline in visitors to physical stores.