Impact of Declining Personal Consumption on Sales and Profit
First written in FY2017. 9 of 20 entries say "Mitigated", first in FY2018-Q3. Latest entry: FY2026.
H2o Retailing moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2020: 18 of 22 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The business environment remained challenging during the period, with inbound sales declining as the number of visitors to Japan from China fell sharply and prices continuing to rise」
Regarding personal consumption and the demand environment, the company simultaneously cited continued price increases and declining inbound sales resulting from a sharp drop in visitors to Japan from China. - FY2025WorsenedAnnual report
「As price increases continue, awareness of the need to protect household finances amid declining real wages is rising.」
Regarding the risk of declining personal consumption, the company identified rising prices and increased awareness of the need to protect household finances amid declining real wages as new environmental factors. - FY2024-Q3MitigatedAnnual report
「In the department store business, domestic consumption remained robust, partly because the favorable effects of external conditions such as the weaker yen and higher share prices continued, while inbound sales grew substantially.」
In response to the impact of declining personal consumption on sales and profit, domestic consumption remained robust and inbound sales also grew substantially. - FY2023MitigatedAnnual report
「Domestic consumption remained strong throughout the period, and same-store sales for October to December, the third-quarter consolidated accounting period, exceeded pre-COVID-19 levels as tax-exempt sales recovered.」
Same-store sales exceeded pre-COVID-19 levels as domestic consumption and tax-exempt sales recovered. - FY2023-Q3MitigatedAnnual report
「As the impact of COVID-19 subsided and social life began returning to pre-pandemic conditions, domestic consumption remained strong throughout the period. In addition, the recovery in duty-free sales lifted same-store sales for October to December, the third-quarter consolidated accounting period, above pre-pandemic levels.」
Domestic consumption remained strong, and same-store sales at department stores exceeded pre-COVID-19 levels as the impact of the infection eased and consumer sentiment recovered. - FY2023-Q2MitigatedAnnual report
「Although the impact of COVID-19 remained, domestic same-store sales exceeded pre-COVID-19 levels as a result of strong performance at the Hankyu Main Store」
While stating that the impact of the infection remained, the company reported that domestic same-store sales exceeded pre-COVID-19 levels on the recovery in consumer sentiment and strong performance at the Hankyu Main Store. - FY2023-Q1MitigatedAnnual report
「In the department store business, domestic same-store sales exceeded pre-COVID-19 levels as the impact of COVID-19 eased and consumer sentiment showed signs of recovery.」
Domestic same-store sales at department stores exceeded pre-COVID-19 levels as the impact of the infection eased and consumer sentiment recovered. - FY2022MitigatedAnnual report
「On a “gross sales” basis, corresponding to sales through the previous fiscal year excluding the effects of these changes in accounting policies, sales were ¥788,108 million. Although store closures and other measures following the state of emergency declaration continued from the previous fiscal year, sales increased on an underlying basis to 106.6% of the previous fiscal year’s level.」
Although store closures and other measures continued, gross sales excluding the effects of the accounting policy change were 106.6% of the previous fiscal year’s level, indicating an improvement from the previous fiscal year in the impact of personal consumption and customer visits on operating results. - FY2022-Q3MitigatedAnnual report
「On a “gross sales” basis, corresponding to sales through the previous fiscal year excluding the effects of these changes in accounting policies, sales were ¥567,149 million. Although store closures and reduced operations following the state of emergency declaration continued from the previous fiscal year, sales increased on an underlying basis to 102.8% of the previous fiscal year’s level.」
Although store closures and reduced operations continued, gross sales on an underlying basis were 102.8% of the previous year’s level, indicating an improvement from the previous fiscal year in the impact of declining personal consumption on operating results. - FY2021WorsenedAnnual report
「The Group’s consolidated operating results for the period were significantly affected, particularly in the department store business, by the issuance of two states of emergency declarations in response to the spread of COVID-19 and restrictions on going out. Sales were ¥739,198 million, or 82.4% of the previous fiscal year’s level.」
The decline in personal consumption and demand for going out appeared as a substantial decrease in annual sales, which were 82.4% of the previous fiscal year’s level. - FY2021-Q3WorsenedAnnual report
「Although signs of a recovery in the underlying trend emerged when the number of new infections was declining, the renewed spread of infections in the “third wave” from December onward reduced visits by office commuters, senior citizens, and families, leaving the number of customers entering stores in central urban areas at a low level.」
The renewed spread of infections reduced visits by office commuters, senior citizens, and families, leaving the number of customers entering stores in central urban areas at a low level. The decline in personal consumption and demand for going out caused by COVID-19 has continued. - FY2021-Q2WorsenedAnnual report
「From the second quarter onward, the company gradually changed operating hours and resumed events and sales promotion initiatives while taking into account trends in new COVID-19 infections. However, the number of customers entering stores in central urban areas remained low, reflecting the continued tendency of office commuters, senior citizens, and families in particular to avoid going into central urban areas, including on weekends.」
The number of customers entering stores in central urban areas remained low as people continued to avoid going into those areas and the number of commuters declined. Second-quarter accounting-period sales in the department store business were 71.2% of the previous year’s level, while same-store sales in central urban areas were 67.6%. - FY2021-Q1WorsenedAnnual report
「The Group’s consolidated operating results for the period were significantly affected, particularly in the department store business, by the issuance of a state of emergency declaration in response to the spread of COVID-19 and the subsequent restrictions on going out. Sales were ¥145,904 million, or 67.2% of the previous fiscal year’s level.」
The decline in personal consumption and demand for going out materialized as a substantial decrease in Group sales due to COVID-19, the state of emergency declaration, and restrictions on going out. - FY2020-Q3MaterialisedAnnual report
「After the tax increase, sales in the department store and food businesses declined because of the drop following last-minute demand, restrained purchasing caused by weaker consumer sentiment, and the impact of the warm winter.」
The weakening of consumer sentiment and restrained purchasing after the tax increase materialized as declines in sales in the core department store and food businesses. - FY2020-Q2RestatedAnnual report
「Domestic and inbound demand both remained robust, while fewer natural disasters occurred this year than in the same period of the previous year, and last-minute demand ahead of the consumption tax increase in September also contributed.」
Domestic and inbound demand remained robust, and consolidated sales were 101.4% of the previous year’s level. - FY2020-Q1RestatedAnnual report
「Sales at the Hankyu Main Store increased to 104.1% of the same period a year earlier, with both domestic and inbound demand remaining solid.」
Regarding the risk of declining personal consumption, the company stated that domestic demand remained robust and sales at the Hankyu Main Store exceeded the previous year’s level. - FY2019-Q3RestatedAnnual report
「The department store business performed well on robust domestic demand and expanding inbound demand, driving the overall results. Consolidated sales exceeded the previous year at ¥700,406 million, or 101.6% of the previous year’s level.」
Although the business was affected by natural disasters, consolidated sales exceeded the previous year’s level on robust domestic demand and expanding inbound demand. - FY2019-Q2MitigatedAnnual report
「Although sales temporarily declined because of a succession of natural disasters, the department store business performed well on robust domestic demand and expanding inbound demand, driving the overall results. Consolidated sales exceeded the previous year at ¥444,408 million, or 102.9% of the previous year’s level.」
Although natural disasters caused a temporary decline in sales, consolidated sales exceeded the previous year’s level on robust domestic demand and expanding inbound demand. - FY2018-Q3MitigatedAnnual report
「Robust domestic consumption accompanying stronger consumer sentiment due to the weaker yen and higher share prices」
In contrast to the decline in personal consumption reported for the previous fiscal year, the company stated that domestic consumption remained robust during the nine-month period ended in the third quarter. - FY2017First statedAnnual report
「In its core department store and food businesses, sales, operating income, and ordinary income all fell below the previous year’s levels, owing not only to declining personal consumption but also to the impact of rebuilding work and store closures resulting from store restructuring.」
Declining personal consumption was reflected in the results as a factor behind the year-on-year declines in sales, operating income, and ordinary income in the core businesses for the period.