Cost pressures from rising logistics costs and labor shortages
First written in FY2019-Q2. 4 of 8 entries say "Materialised", first in FY2019. Latest entry: FY2023-Q1.
Kimuratan moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
20 other companies' latest entry also says "Mitigated".
- FY2023-Q1MitigatedAnnual report
「Expenses in the apparel business decreased due to lower personnel expenses resulting from business downsizing, including a narrower brand portfolio and store closures, and reductions in external logistics costs through the in-house operation of logistics.」
The filing reported reductions in external distribution and related costs through the in-house management of logistics, indicating a partial reduction in distribution cost pressures. - FY2022-Q2MitigatedAnnual report
「Store expenses declined due to the closure of unprofitable stores, while transportation expenses related to e-commerce also decreased, resulting in a 6.4% year-on-year decline to ¥1,157 million.」
The decline in transportation expenses related to e-commerce was reported, indicating a partial reduction in distribution cost pressures. - FY2022-Q1MitigatedAnnual report
「Lower transportation expenses related to e-commerce」
The filing states that transportation expenses related to e-commerce declined, but does not indicate that the overall risks from rising distribution costs and labor shortages have been resolved. - FY2021MaterialisedAnnual report
「Higher distribution costs and related expenses associated with e-commerce sales growth」
Higher distribution costs and related expenses associated with e-commerce sales growth were reported as actual expense increases. - FY2021-Q3MaterialisedAnnual report
「Higher distribution costs and related expenses associated with e-commerce sales growth」
The company explained that distribution costs and related expenses actually increased in line with e-commerce sales growth. - FY2021-Q2MaterialisedAnnual report
「SG&A totaled ¥1,236 million, down 9.3% year on year. This reflected efforts to reduce personnel expenses and store rent as stores were temporarily closed and working hours shortened, as well as other expenses such as travel costs, despite increases in logistics and other costs associated with growth in online sales and higher expenses in the wearable IoT business.」
Higher distribution costs and related expenses associated with e-commerce sales growth were reported as actual expense increases. Meanwhile, total selling, general and administrative expenses declined 9.3% year on year. - FY2019MaterialisedAnnual report
「In addition to higher personnel expenses associated with the increase in the number of stores and higher transportation expenses due to increased delivery rates,」
The risk of rising distribution costs materialized as an actual increase in expenses due to higher delivery rates. - FY2019-Q2First statedAnnual report
「The effects on the economy of rising distribution costs, including transportation expenses, and the emerging labor shortage are beginning to appear.」
The effects of rising distribution costs and labor shortages are beginning to emerge in the business environment, newly highlighting external cost and supply constraint risks.