Store Closures and Business Impact from COVID-19
First written in FY2020. 4 of 13 entries say "Softened", first in FY2022-Q2. Latest entry: FY2025.
Kisoji moved to the "Worse" side of this theme in 2023, 3 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 77 of 101 companies on the "Worse" side.
8 other companies' latest entry also says "Softened".
- FY2025SoftenedAnnual report
「Consumer purchasing activity is on a gradual recovery trajectory as it returns to pre-pandemic levels. Consumption is expected to remain firm, supported by higher real wages resulting from the high rate of wage increases in the spring wage negotiations for fiscal 2024 and strong corporate investment appetite aimed at moving from improved performance to growth.」
It was stated that consumer purchasing activity was returning to pre-pandemic levels, and concerns about the adverse impact of infections on operations and demand had eased further. - FY2024SoftenedAnnual report
「Consumer purchasing activity is on a gradual recovery trajectory as it returns to pre-pandemic levels. Consumption is expected to remain firm, supported by higher real wages resulting from the high rate of wage increases in the spring wage negotiations for fiscal 2024 and strong corporate investment appetite aimed at moving from improved performance to growth.」
It was stated that consumer purchasing activity was returning to pre-pandemic levels against the backdrop of the reclassification of COVID-19 as a Class 5 disease and the recovery in human mobility, and concerns about infection-related operating and demand risks had eased. - FY2023-Q3MaterialisedAnnual report
「In addition, the number of new infections increased and customer visits declined due to the seventh wave of COVID-19 from July onward.」
Although there was a period without operating restrictions, the seventh wave led to an increase in new infections and an actual decline in customer visits as an impact of COVID-19. - FY2023-Q1SoftenedAnnual report
「Although the food service industry was able to operate without restrictions for the first time in 3 years, the surrounding environment remains difficult due to higher purchase prices, utility costs and logistics costs resulting from soaring raw material and crude oil prices.」
After 3 years, unrestricted operations became possible and operating restrictions due to COVID-19 were partially eased. However, preventive measures continued, and it was not stated that the impact of the pandemic had been fully resolved. - FY2022RestatedAnnual report
「The spread of COVID-19 has resulted in the suspension of store operations and a risk of infection spreading among customers, employees and others. Although 2 years have passed since the infection began spreading, if the situation continues for an extended period, the Group's performance may be significantly affected.」
The risks of store closures, the spread of infection and an impact on performance due to COVID-19 continued to be disclosed even 2 years after the infection began spreading. - FY2022-Q3RestatedAnnual report
「Although the tendency to refrain from group dining, travel and other outings after a prolonged period of self-restraint continues, and a considerable amount of time is expected to be required for the Group's performance to recover, circumstances have also changed, including an increase in COVID-19 vaccination rates. In light of these circumstances, the impact of the spread of COVID-19 is expected to recover gradually and subside toward the end of the following consolidated fiscal year.」
Although the tendency to refrain from group dining and travel continues, the assumption that the impact of COVID-19 will gradually recover and subside toward the end of the following consolidated fiscal year has been maintained in light of the increase in vaccination rates and other factors. - FY2022-Q2SoftenedAnnual report
「In light of these circumstances, the impact of the spread of COVID-19 is expected to recover gradually and subside toward the end of the following consolidated fiscal year.」
The assumption regarding the impact of COVID-19 changed from the previous assumption that it would extend into and beyond the following consolidated fiscal year to an assumption that it would gradually recover and subside toward the end of the following consolidated fiscal year. However, the possibility of recording a loss during the current consolidated fiscal year continued to be disclosed. - FY2022-Q1WorsenedAnnual report
「During the cumulative first quarter of the current fiscal year, the Group reduced operating hours and suspended operations at some stores after the application of priority preventive measures to prevent the spread of COVID-19 on 5 April 2021 and the declaration of a third state of emergency from 25 April. The state of emergency was extended through the end of August in 6 prefectures and metropolitan areas, among others, forcing stores to reduce their operating hours. In light of these circumstances, the impact of the spread of COVID-19 is expected to continue for the time being.」
The application of priority preventive measures, the third state of emergency, and its extension through the end of August expanded the expected period of operating restrictions and COVID-19 impacts to the foreseeable future. - FY2021WorsenedAnnual report
「In light of these circumstances, the impact of COVID-19 is expected to extend into and beyond the following consolidated fiscal year.」
The expected impact of COVID-19 expanded from the previous assumption that it would extend into and beyond the following consolidated fiscal year to include the following consolidated fiscal year and beyond, following the reissuance of a state of emergency in January 2021, requests for cooperation in March, and a third state of emergency in April. - FY2021-Q3WorsenedAnnual report
「However, a new state of emergency was declared in January 2021, again forcing stores to reduce their operating hours. In light of these circumstances, the impact of COVID-19 is expected to extend into the following fiscal year.」
Although performance had begun to recover after all stores resumed operations, the reissuance of a state of emergency in January 2021 forced reduced operating hours, expanding the expected impact into the following fiscal year. - FY2021-Q2RestatedAnnual report
「As net sales may decline significantly during the current fiscal year, and the company may record material operating losses, ordinary losses and net losses, as well as negative operating cash flow, events or circumstances that raise substantial doubt about the going-concern assumption exist at this point.」
The possibility of lower net sales, losses, and deterioration in operating cash flow due to COVID-19, as well as circumstances raising substantial doubt about the going-concern assumption, continued to be described. - FY2021-Q1MaterialisedAnnual report
「With the safety of customers and employees as our top priority, many stores refrained from normal operations, including voluntary closures and reduced hours, resulting in a sharp decline in net sales and leaving the business environment unpredictable. Although all stores resumed operations from 1 June, remote work and consumers' restraint from nonessential, nonurgent outings continued, and a shift from eating out to eating at home was also observed, leaving the timing of a recovery uncertain.」
A sharp decline in net sales caused by voluntary store closures and reduced hours, as well as the lack of a clear recovery outlook even after all stores reopened, actually occurred. - FY2020First statedAnnual report
「The spread of COVID-19 has resulted in the suspension of operations at some stores and a risk of infection spreading among customers, employees and others. If this situation continues for an extended period, the company's performance may be significantly affected.」
The suspension of store operations and the risk of infection spreading due to COVID-19 were newly disclosed. Following the government's and local authorities' declarations of a state of emergency, 114 stores had been temporarily closed.