Divergence between increased customer traffic and decreased same-store sales at existing apparel stores

「Accordingly, from the current interim consolidated accounting period, the Group has omitted segment-specific disclosures because it operates as a single segment consisting solely of the footwear business.」

「In the cumulative second quarter, consumers showed a stronger propensity to save due to rising consumer prices, including food and energy prices. However, same-store sales increased 4.6% year on year as restrictions on activities were eased and opportunities to go out increased.」

「Although rising prices put pressure on household finances, the impact of COVID-19 eased and consumer sentiment improved as opportunities to go out increased. Same-store sales increased 4.8% year on year in the cumulative first quarter.」

「As a result of these initiatives, average spend per customer at existing stores increased 7.6%, but customer numbers at existing stores fell 5.3% due to the significant impact of the spread of COVID-19, resulting in same-store sales increasing 1.9% year on year.」

「However, the spread of COVID-19 had a significant impact on sales. Sales increased sharply year on year in the first quarter, reflecting the reversal of the impact of shortened business hours and facility closures in the previous year, but turned negative from the second quarter onward due to the renewed spread of COVID-19. Same-store sales increased 0.8% year on year.」

「Sales for the cumulative second quarter increased year on year in the first quarter, reflecting the reversal of the significant impact in the previous year from requests to refrain from going out, shortened business hours, and the closure of facilities where our stores were located amid the spread of COVID-19. Sales turned negative in the second quarter as the Bon-period sales campaign performed poorly, but cumulative same-store sales increased 4.9% year on year.」

「Although the pace of recovery was gradual, sales for the cumulative first quarter recovered compared with the previous year, which had been significantly affected by requests to refrain from going out, shortened business hours, and the closure of facilities where our stores were located amid the spread of COVID-19. Same-store sales increased 30.5% year on year.」

「In the apparel business, we pursued our slogan, “Building stores trusted by many customers and that offer an appealing shopping experience.” However, customer numbers fell sharply, particularly at shopping centers, due to requests to refrain from going out amid the spread of COVID-19, shortened business hours to prevent infection, and store closures resulting from the closure of facilities where our stores were located.」

「Although average spend per customer at existing stores increased 8.1% year on year as a result of product reforms, customer numbers at existing stores fell 44.1% and same-store sales fell 39.6%.」

「Although we implemented the measures described above and the 30th-anniversary initiatives and promotional measures for mobile members were supported by customers, customer numbers increased. However, average spend per customer declined as the prolonged rainy season shifted the selling period for summer merchandise, markdown sales and clearance of stagnant inventory continued, and we actively sold through inventory to avoid carrying new stagnant inventory, resulting in the gross profit margin falling below the previous year.」

「Although we implemented the measures described above and the 30th-anniversary initiatives were supported by customers, customer numbers increased, while average spend per customer declined as we actively marked down and cleared stagnant inventory, and the gross profit margin also fell below the previous year.」

「Although we implemented the measures described above, customer numbers declined as the effectiveness of newspaper advertising weakened and the launch of seasonal products was delayed by weather conditions. Average spend per customer also fell as both unit prices and the number of items purchased per customer remained sluggish, resulting in same-store sales for the cumulative third quarter falling 10.3% year on year.」

「Same-store sales for the cumulative second quarter fell 9.5% year on year.」

「However, conventional street-front stores remained weak, and same-store sales for the cumulative first quarter fell 8.7% year on year, resulting in gross profit falling significantly below the previous year.」

「However, sales at aging street-front stores, which account for more than 30% of the store base, remained weak, and same-store sales fell 5.2% from the previous period.」

「However, due to unseasonable weather and price competition with major casual apparel retailers, customer numbers remained sluggish, and same-store sales for the cumulative third quarter fell 5.4% year on year.」

「As a result, the gross profit margin rose 5.2 percentage points year on year, mainly reflecting the benefits of procurement reforms. However, the substantial decline in the number of customers had a significant impact, with apparel business revenue at ¥15,163 million, down 9.0% year on year, and operating profit at ¥15 million, compared with an operating loss of ¥26 million in the prior-year period.」

「As a result, sales fell below the previous year owing to the decline in the number of stores following closures and sluggish same-store customer numbers amid intensifying competition, although」

「Same-store customer numbers for the cumulative third quarter period rose 2.7% year on year, representing some progress; however, affected by adverse weather from August to September and sluggish growth in average spend per customer, same-store sales fell 2.0% year on year.」