Risks to In-Store Sales, Production and Logistics from the Spread of COVID-19
First written in FY2020. 5 of 13 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2024MitigatedAnnual report
「Although COVID-19 is currently moving toward containment, if a new infectious disease emerges and spreads in the future and a state of emergency is declared again, the Group's business results and financial position could be materially affected by factors including a sharp decline in customer traffic caused by store closures and requests to refrain from going out, and a deterioration in consumer sentiment caused by declining income.」
The current direct impact of COVID-19 is viewed as moving toward containment, while the emergence and spread of new infectious diseases have been reassessed as future risks. - FY2024-Q2MitigatedAnnual report
「Business results: During the first six months of the fiscal year from 1 April 2023 to 30 September 2023, Japan's economy saw the flow of people broadly return to pre-pandemic levels as the transition of COVID-19 to Category 5 eliminated restrictions on activities. However, consumer prices rose across a wide range of goods, particularly resource-related items, against a backdrop of unstable international conditions and surging raw material and energy prices, and uncertainty about the outlook for the domestic economy continued.」
The transition of COVID-19 to Category 5 and the lifting of activity restrictions eased its direct impact on store sales, while uncertainty related to rising prices and international conditions remains. - FY2024-Q1MitigatedAnnual report
「During the first quarter of the fiscal year, Japan's economy was moving toward normalization of social and economic activity as the number of COVID-19 cases declined,」
The decline in infections and normalization of social and economic activity have eased the direct impact of COVID-19 on store sales compared with the previous fiscal year. - FY2023-Q3MitigatedAnnual report
「During the first nine months of the fiscal year, Japan's economy made progress in balancing measures to contain COVID-19 with social and economic activity,」
Progress in balancing measures to contain the infection with social and economic activity partly eased the direct impact of the infection on store sales seen through the previous fiscal year. - FY2023-Q1MitigatedAnnual report
「During the first quarter of the fiscal year, Japan's economy was moving toward normalization of social and economic activity as the number of COVID-19 cases declined. However, consumer prices rose across a wide range of goods, particularly resource-related items, against a backdrop of unstable international conditions and surging raw material and energy prices, and uncertainty about the outlook for the domestic economy continued.」
The decline in infections and normalization of social and economic activity partly eased the risk of COVID-19 affecting store sales compared with the previous fiscal year. At the same time, uncertainty stemming from international conditions and surging raw material and energy prices became apparent. - FY2022-Q3WorsenedAnnual report
「Clothing expenditure did not achieve a full recovery during the quarter, while concerns about a sixth wave driven by the Omicron variant increased, and uncertainty about the outlook continues.」
Clothing expenditure has not fully recovered due to the impact of COVID-19, and concerns about a sixth wave driven by the Omicron variant have newly intensified. - FY2022-Q2WorsenedAnnual report
「COVID-19 continued to spread, and the declaration of a fourth state of emergency in July restricted the movement of people and economic activity. As a result, personal consumption declined sharply, and apparel sales also remained difficult.」
The spread of infections and the fourth state of emergency caused the decline in personal consumption and adverse effects on apparel sales to continue and intensify. - FY2022-Q1MaterialisedAnnual report
「There was no prospect of the spread of COVID-19 subsiding, and the declaration of the third state of emergency in April restricted movement and economic activity, causing personal consumption to decline substantially. Apparel sales also remained in a challenging situation.」
The resurgence of infections and the third state of emergency led to actual restrictions on people's movement and economic activity, a decline in personal consumption, and adverse effects on apparel sales during the quarter. - FY2021MaterialisedAnnual report
「Because of the high transmissibility of the variant, during the third state of emergency, some shopping centers took a different approach from the previous period, closing not only specialty-store malls but also the children’s apparel shop-in-shop locations operated by the company」
The resurgence of infections and the third state of emergency resulted in and continued to cause store closures, including shop-in-shop locations, a decline in customer traffic and lower sales. - FY2021-Q3MaterialisedAnnual report
「From around November, COVID-19 infections began spreading again nationwide, and the outlook for the economy became extremely uncertain, with a state of emergency declared again.」
The resurgence of infections and the third declaration of a state of emergency actually occurred, and the resulting store closures, decline in customer traffic and weak sales of seasonal products continued. - FY2021-Q2MaterialisedAnnual report
「During the six-month period ended in the second quarter, Japan’s economy was affected by the spread of COVID-19, with real GDP in the April–June quarter recording its largest postwar decline and economic deterioration accelerating. The apparel industry also remained in an extremely challenging situation during the state of emergency, as store traffic fell sharply due to the closure of large commercial facilities and requests for people to refrain from going out.」
During the second quarter, COVID-19 resulted in a sharp decline in customer traffic, the closure of large commercial facilities and the disappearance of demand for seasonal products. - FY2021-Q1MaterialisedAnnual report
「Most of the Group’s stores operating nationwide are shop-in-shop locations within the baby and children’s apparel sections of general merchandise stores, so the number of closures was limited, with 28 of 250 stores closed as of 30 April 2020. However, in-store sales were significantly affected by a sharp decline in customer traffic as consumers refrained from going out after the state of emergency was declared in April, as well as by reduced working hours implemented to ensure employee safety.」
COVID-19 resulted in the closure of 28 of 250 stores, a decline in customer traffic as people refrained from going out, and an impact on in-store sales from reduced working hours. - FY2020First statedAnnual report
「The spread of COVID-19 has created an uncertain outlook for the business environment surrounding the Group. Although all stores are currently operating, if a second wave occurs and a state of emergency is declared again, store sales could decline substantially due to the closure of some stores, a sharp decrease in customer traffic caused by calls to refrain from going out, and the implementation of measures to prevent the spread of infection, such as reduced operating hours. This could have a significant impact on the Group’s business results and financial position.」
COVID-19 was identified as a standalone business risk for the first time. As of 30 April 2020, 28 of 250 stores were closed, and sales in April and May declined substantially. The company also identified potential production and logistics disruptions if infections resurged in China as a risk.