Impact of Natural Disasters, Fires and Other Events on Stores and the Real Estate Business

「We are also working with local authorities to develop our role as a regional disaster-prevention hub.」

「In March, 東神開発株式会社 entered into a comprehensive cooperation agreement on regional revitalization with Nagareyama City, Chiba Prefecture, and is promoting further mutual cooperation and regional revitalization together with the local government in areas including community development, childcare, and disaster response.」

「In March of this year, "Tamagawa Takashimaya S・C" entered into a cooperation agreement with Setagaya-ku, Tokyo, concerning disaster response, as part of its efforts to coexist with the local community.」

「To fulfill the social mission expected of a company with sites in major cities, we have established a system for immediately assisting disaster victims by reserving space within our store facilities to accommodate people unable to return home in the event of a major disaster, and by making prior arrangements with suppliers so that mainly daily necessities and other store merchandise can be provided.」

「Our Group operates sites across both the Kansai and Kanto regions. Even in the event of a large-scale, widespread and catastrophic disaster, we have established a system under which a crisis management headquarters can be promptly set up in either Kansai or Kanto, ensuring that information sharing and the chain of command are not disrupted. We are also strengthening our business continuity planning by establishing systems to provide assistance to affected stores, promoting the migration of important data to the cloud to prevent data loss, and preparing the infrastructure, supplies and other resources needed to maintain minimum business operations.」

「However, consumer sentiment has deteriorated amid the frequent occurrence of natural disasters in various regions and increasing uncertainty over the outlook for the global economy due to intensifying US-China trade friction. In addition, with the risk of a decline in consumption following the October consumption tax rate increase, the domestic economy is increasingly likely to enter a recessionary phase.」

「During the first 3 quarters of the current consolidated fiscal year, Japan's economy expanded moderately, despite the effects of natural disasters such as earthquakes and torrential rain, supported by robust corporate earnings, increased capital investment and an improvement in personal consumption.」

「Although a gradual recovery in personal consumption is expected to continue, the outlook requires close monitoring amid concerns over intensifying global trade friction and the prolonged effects of natural disasters.」

「Natural disasters such as earthquakes, floods and typhoons, as well as accidents such as fires, may have a negative impact on the performance of our Group.」