Intensifying Competition Among Business Formats and Consumers’ Thrift Orientation

「Although conditions remained firm against a backdrop of strong inbound demand and other factors, the situation continued to warrant caution due to consumers’ increasingly frugal spending amid rising prices, increasingly severe labor shortages, and higher raw-material prices and other expenses.」

「In the foodservice wholesale industry to which the Group belongs, the foodservice market, its main market, remained firm, supported by strong inbound demand and other factors. However, the business environment remained uncertain due to increasingly cost-conscious consumers amid rising prices, worsening labor shortages, and higher expenses, including logistics costs.」

「The difficult situation continued, including consumers' increasing inclination to economize amid rising prices, worsening labor shortages, and higher expenses such as logistics costs.」

「In addition to the normalization of economic activity following the reclassification of COVID-19 to Category 5 in May last year, the depreciation of the yen provided a tailwind for inbound demand, and the food service market, our Group's main market, expanded steadily. At the same time, consumers were increasingly inclined to economize amid rising prices.」

「The business plans to transfer some stores by the end of January 2025 to 3 consolidated subsidiaries of 株式会社バローホールディングス, as well as to 株式会社三杉屋 and ゴダイ株式会社, close the remaining stores, and withdraw from the food supermarket business.」

「However, in addition to continued intensifying competition, the business segment was affected by a decline in the number of items purchased per customer as consumers increasingly sought to economize. Revenue was ¥7.884 billion, down 1.2% year on year, and operating loss was ¥327 million, compared with an operating loss of ¥280 million in the same period of the previous year.」

「However, in addition to continued intensifying competition, the business segment was affected by a decline in the number of items purchased per customer as consumers increasingly sought to economize. Revenue was ¥3.848 billion, down 3.1% year on year, and operating loss was ¥221 million, compared with an operating loss of ¥126 million in the same period of the previous year.」

「However, in addition to intensifying competition, the business segment was affected by the closure of 2 stores in the previous fiscal year. Revenue was ¥12.074 billion, down 9.5% year on year, and operating loss was ¥517 million, compared with an operating loss of ¥254 million in the same period of the previous year.」

「However, in addition to intensifying competition, the business segment was affected by the closure of 2 stores in the previous fiscal year. Revenue was ¥7.982 billion, down 10.6% year on year, and operating loss was ¥280 million, compared with an operating loss of ¥173 million in the same period of the previous year.」

「In this business segment, as consumers increasingly sought to economize because of food price increases and competition across industry boundaries continued to intensify, we continued initiatives to put into practice the concepts of “your community’s healthy and reliable refrigerator,” “the food supermarket in your neighborhood,” and “the store that provides everyday side dishes.”」

「However, in addition to the reversal of stay-at-home demand in the previous fiscal year and the impact of store closures carried out in the previous and current fiscal years, competition continued to intensify. Revenue in this business segment was ¥17.568 billion, down 6.7% from the previous fiscal year, and operating loss was ¥384 million, compared with an operating loss of ¥135 million in the previous fiscal year.」

「However, in addition to continued intensifying competition, the business segment was affected by the reversal of the sharp increase in stay-at-home demand in the previous fiscal year and by store closures carried out in the previous and current fiscal years. Revenue was ¥13.337 billion, down 6.2% year on year, and operating loss was ¥254 million, compared with operating profit of ¥72 million in the same period of the previous year.」

「Although consumers' increasing focus on protecting their household finances amid the COVID-19 pandemic and intensifying competition across industry boundaries continued, we focused on offering a product selection emphasizing freshness and taste in order to put into practice the concepts of “your community’s healthy and reliable refrigerator,” “the food supermarket in your neighborhood,” and “the store that provides everyday side dishes.”」

「Although consumers’ focus on protecting household finances amid the COVID-19 pandemic and intensifying competition across industry boundaries continued, the company continued strengthening its response to its core senior customer base, including by focusing on an assortment of fresh and delicious products in order to put its concepts into practice: “the healthy, safe local refrigerator,” “the food supermarket in your neighborhood,” and “the store that provides your daily side dishes.”」

「As a result, revenue in this business segment was ¥18.832 billion, down 4.4% from the previous fiscal year, while operating loss improved to ¥135 million from ¥344 million in the previous fiscal year, owing to an improvement in the gross profit margin.」

「While stay-at-home demand expanded, consumers increasingly focused on protecting their household finances, and competition across industry boundaries continued to intensify. As a result, revenue in this business segment was ¥14.218 billion, down 5.3% year on year, while operating loss improved to ¥72 million from ¥295 million in the same period of the previous year, owing to an improvement in the gross profit margin.」

「While stay-at-home demand resulting from COVID-19 expanded, consumers increasingly focused on protecting their household finances, and competition across industry boundaries continued to intensify.」

「Revenue in this business segment was ¥19.7 billion, down 5.2% from the previous fiscal year, while operating loss improved to ¥344 million from ¥371 million in the previous fiscal year.」

「However, as consumers continued to economize, performance did not recover. Revenue in this business segment was ¥15.009 billion, down 3.8% year on year, and operating loss was ¥295 million, compared with an operating loss of ¥283 million in the same period of the previous year.」

「In this business segment, the difficult operating environment continued, including consumers' frugal spending on everyday goods and intensifying competition across industry boundaries.」

「However, partly because of the impact of intensifying competition, revenue in this business segment was ¥4.995 billion, down 2.5% year on year, and operating loss was ¥102 million, compared with an operating loss of ¥65 million in the same period of the previous year.」

「Amid a continuing difficult operating environment, including persistent consumer thriftiness in everyday purchases and intensifying competition across industry boundaries, TOHO Store, as a community-based food supermarket, focused on differentiating its product selection, centered on fresh foods and prepared foods. It enhanced distinctive Hyogo offerings such as Kande vegetables and Hyogo beef, and regularly held direct-from-source seafood fairs, including seafood from Sakaiminato in Tottori Prefecture.」

「In the food retail industry as well, consumers remained strongly inclined to economize on everyday purchases, while competition across industry boundaries intensified, leaving the operating environment unpredictable.」

「In the food retail industry as well, consumers remained strongly inclined to economize on everyday purchases, while competition across industry boundaries intensified, leaving the operating environment unpredictable.」

「In the wholesale food industry in which our Group operates, sales at the food service industry, a major source of demand, remained generally solid. In the food retail industry, however, consumers remained strongly inclined to economize on everyday purchases, while competition across industry boundaries intensified, leaving the operating environment unpredictable.」

「As frugal spending on everyday goods continued and competition across industry boundaries intensified further, we focused on strengthening customer service, freshness and product selection as a community-based food supermarket, putting into practice the concepts of “your community’s healthy and reliable refrigerator,” “the food supermarket in your neighborhood,” and “the store that provides everyday side dishes,” while increasing customer satisfaction and encouraging repeat visits.」

「In this business segment, frugal spending on everyday goods continued, while competition across industry boundaries intensified further. As a community-based food supermarket, we worked to strengthen our product offerings and sales capabilities in order to put into practice the concepts of “your community’s healthy and reliable refrigerator,” “the food supermarket in your neighborhood,” and “the store that provides everyday side dishes,” thereby increasing customer satisfaction and encouraging repeat visits. These initiatives produced some results, but a full recovery in performance was not achieved. In addition, partly because of the impact of the closure of 9 stores during the previous fiscal year and the fiscal year under review, revenue in this business segment was ¥16.012 billion, down 6.8% year on year, while operating loss improved to ¥254 million from ¥292 million in the same period of the previous year.」

「In this business segment, frugal spending on everyday goods continued, while competition across industry boundaries intensified further. As a community-based food supermarket, we worked to strengthen our product offerings and sales capabilities in order to put into practice the concepts of “your community’s healthy and reliable refrigerator,” “the food supermarket in your neighborhood,” and “the store that provides everyday side dishes,” thereby increasing customer satisfaction and encouraging repeat visits. These initiatives produced some results, but revenue in this business segment was ¥10.697 billion, down 6.3% year on year, partly because of the impact of the closure of 9 stores during the previous fiscal year and the first half of the fiscal year under review. Operating loss improved to ¥165 million from ¥194 million in the same period of the previous year.」

「In this business segment, frugal spending on everyday goods continued, while competition across industry boundaries intensified further. As a community-based food supermarket, we worked to strengthen our product offerings and sales capabilities and enhance services in order to put into practice the concepts of “your community’s healthy and reliable refrigerator,” “the food supermarket in your neighborhood,” and “the store that provides everyday side dishes,” thereby increasing customer satisfaction and encouraging repeat visits.」

「In response to increasingly intense competition, we focused on measures including strengthening sales during peak hours. However, customer traffic did not recover sufficiently, and the resulting increase in product losses left conditions extremely difficult. As a result, revenue in this business segment was ¥17.182 billion, down 1.8% year on year, and operating loss was ¥292 million, compared with an operating loss of ¥111 million in the same period of the previous year.」

「Consumer sentiment remained stagnant as consumers increasingly focused on protecting their household finances amid concerns about the future. In addition, the business environment remained unpredictable as the effects of the Kumamoto Earthquake of 2016 (hereinafter, the “Earthquake”), which occurred in April, persisted.」