Deterioration in Department Store Trading Conditions Due to Sluggish Personal Consumption, Weak Apparel Sales, and Other Factors

「In the department store industry, domestic occasion-based demand and spending by affluent consumers remained firm, showing resilience. However, difficult business conditions continue as inbound demand has slowed due to the pause in the yen's depreciation and the impact of China's call for restraint on overseas travel, while demand for high-priced goods has also lost momentum.」

「For domestic consumption, concerns remain that downside risks to consumer sentiment from heightened tensions in Japan-China relations, geopolitical risks and U.S. trade policy may affect consumption, and the outlook remains uncertain.」

「The environment surrounding department stores remains difficult, with high-value consumption and inbound demand centered on flagship department stores in major urban areas slowing, while difficult business conditions generally continue at department stores in regional cities and suburban locations, where inbound demand is limited.」

「In the department store industry, customer traffic increased as people became more willing to go out after the lifting of restrictions, while the rapid recovery in foreign tourist arrivals also led to a marked recovery in business conditions, particularly at flagship department stores in major urban areas. However, difficult business conditions continue at department stores in regional cities and suburban locations, where inbound demand is limited.」

「In the department store industry, business conditions recovered markedly, particularly in major urban areas, mainly driven by inbound demand following the lifting of restrictions on activities. However, department stores in regional cities and suburban locations, where inbound demand is limited, remain in a difficult business environment, and the industry as a whole remains on a gradual recovery trend.」

「In the department store industry, business conditions recovered markedly, particularly in major urban areas, mainly driven by inbound demand, following the reclassification of COVID-19 under the Infectious Diseases Control Law to Category 5 in May 2023 and the lifting of restrictions on activities. However, department stores in regional cities and suburban locations, where inbound demand is limited, remain in a difficult business environment, and the industry as a whole remains on a gradual recovery trend.」

「In the department store industry, following the reclassification of COVID-19 under the Infectious Diseases Control Law to Category 5 in May 2023 and the lifting of restrictions on activities, trading conditions improved from the previous year due to increased opportunities to go out and the recovery in inbound demand from overseas visitors, with signs of recovery beginning to emerge mainly in major metropolitan areas.」

「In the department store industry, trading conditions improved from the previous year due to increased opportunities to go out and the recovery in inbound demand, and signs of recovery began to emerge mainly in major cities. In regional areas, however, conditions had still not reached pre-pandemic levels.」

「In the department store industry, while concern was expressed about the negative impact of COVID-19 and rising prices on personal consumption, trading conditions substantially exceeded the previous year's level and began to show signs of recovery due to the rebound after requests for temporary closures under the previous year's state of emergency were lifted and increased opportunities to go out following the easing of restrictions on activities. However, conditions had not reached pre-pandemic levels.」

「In the department store industry, trading conditions substantially exceeded the previous year's level, and signs of recovery began to emerge, due to the rebound after the lifting of severe operating restrictions, including requests for temporary closures under the state of emergency and shortened operating hours, the cancellation of major events, and increased opportunities to go out following the lifting nationwide in late March of quasi-emergency measures to prevent the spread of COVID-19. However, conditions had not reached pre-pandemic levels.」

「In the department store industry, difficult business conditions continue due to reduced sales opportunities, including temporary closures and shortened operating hours associated with the spread of COVID-19, the cancellation of major events and a sharp drop in inbound demand, resulting in a substantial decline in store visitors. Trading conditions have gradually begun to show signs of recovery, but have not returned to pre-pandemic levels.」

「In the department store industry, difficult business conditions continued due to reduced sales opportunities, including requests for temporary closures under the state of emergency associated with the spread of COVID-19, shortened operating hours, canceled major events and weak inbound demand. After the state of emergency was lifted, trading conditions gradually began to show signs of recovery, but had not returned to pre-pandemic levels.」

「Although performance in the department store industry was trending toward recovery compared with the previous fiscal year, trading conditions remained difficult nationwide due to reduced sales opportunities, including requests for temporary closures under the state of emergency associated with the spread of COVID-19 and shortened operating hours, the cancellation of major events and weak inbound demand.」

「Although performance in the department store industry was trending toward recovery compared with the previous fiscal year, trading conditions remained difficult nationwide due to reduced sales opportunities from temporary closures and shortened operating hours associated with the spread of COVID-19, the cancellation of major events and weak inbound demand.」

「In the department store industry, trading conditions were generally difficult nationwide, with sales substantially below the previous year's level, due to a sharp decline in store visitors from reduced sales opportunities, including temporary closures and shortened operating hours associated with the spread of COVID-19, the cancellation of major events and a sharp drop in inbound demand.」

「In the department store industry, trading conditions were generally difficult nationwide, with sales substantially below the previous year's level, due to a sharp decline in store visitors from reduced sales opportunities, including temporary closures and shortened operating hours associated with the spread of COVID-19, the cancellation of major events and a sharp drop in inbound demand.」

「In the department store industry as well, trading conditions were generally difficult nationwide, with sales substantially below the previous year's level, due to a sharp decline in store visitors from reduced sales opportunities, including temporary closures and shortened operating hours associated with the spread of COVID-19, the cancellation of major events and a sharp drop in inbound demand.」

「In the department store industry, trading conditions were generally difficult nationwide, with sales substantially below the previous year's level, due to a sharp decline in store visitors from reduced sales opportunities, including temporary closures, shortened operating hours and the cancellation of major events, as well as a sharp drop in inbound demand.」

「The environment surrounding the department store industry remained difficult due to the consumption tax increase, unsettled weather and a slowdown in inbound demand. Regional department stores were similarly affected, with fewer store visitors and sluggish apparel sales, and generally difficult trading conditions continued.」

「In the department store industry, trading conditions remained generally difficult, partly due to the consumption tax increase, unsettled weather and a slowdown in inbound demand.」

「In the department store industry, high-value consumption by affluent customers continued to drive sales, and some categories such as luxury brands and cosmetics performed well. However, sales of high-summer items were sluggish due to unstable weather, and the number of overseas visitors declined, resulting in generally difficult trading conditions.」

「In the department store industry, gradual signs of recovery emerged in major metropolitan areas, supported by an increase in overseas visitors and high-value consumption by affluent customers. In regional department stores, where inbound demand is low, some categories such as cosmetics remained firm, but consumption differed markedly from that in metropolitan areas, resulting in generally difficult trading conditions.」

「In regional areas, where inbound demand is low, some categories such as cosmetics and food-related events remained firm, but consumption differed markedly from that in metropolitan areas, resulting in generally difficult trading conditions.」

「In the department store industry, sales remained generally firm, partly because domestic affluent customers and inbound demand from overseas visitors continued to show strong growth. In regional areas, consumption differs markedly from that in metropolitan areas, and difficult trading conditions continued.」

「In the department store industry, sales remained generally firm, partly because domestic affluent customers and inbound demand from overseas visitors continued to show strong growth. In regional areas, however, where consumption differs markedly from that in metropolitan areas, difficult trading conditions continued.」

「In the department store industry, sales rose for 2 consecutive months as favorable weather in March and April boosted seasonal demand and stimulated sales of spring and summer products. While sales driven by high-value consumption and inbound tourism continued to show strong growth, the domestic market remained sluggish. Sales exceeded the previous year's level in major cities, where the inbound tourism effect is significant, but difficult trading conditions continued in regional cities.」

「Our Group operates mainly in northern Kyushu and the Yamaguchi region, and its performance is affected by regional climate conditions, economic trends, consumption trends, competition with other retailers in the same and different industries, and regional redevelopment projects. These factors may therefore affect the Group's performance.」

「In the department store industry, demand remained firm mainly in major cities amid robust consumption by affluent customers and inbound tourism, while lower temperatures prompted sales of fall and winter apparel such as sweaters and coats to pick up, with gradual signs of recovery emerging.」

「In the department store industry, high-value consumption by affluent customers and inbound consumption maintained strong growth, and signs of recovery were seen in major cities, including sales turning positive in August for the first time in 2 months. In regional cities, however, sales fell below the previous year's level for 4 consecutive months, partly due to weather-related factors such as the heavy rains in northern Kyushu.」

「In the department store industry, high-value consumption and inbound consumption remained strong due to the wealth effect from a weaker yen and higher share prices, and signs of a recovery gradually emerged, including sales turning positive in April for the first time in 14 months. Against this backdrop, our Group advanced the Izutsuya Group Medium-Term Three-Year Management Plan (fiscal 2016 to fiscal 2018) as a foundation for future growth. In the second year of the plan, we continued working to strengthen our ability to respond to changes in lifestyles and the commercial environment, based on a customer perspective. However, personal consumption had not yet achieved a full-fledged recovery, and although some areas saw a rebound from the decline in consumption caused by the Kumamoto Earthquake in April of the previous year, the overall results were difficult.」

「In the department store industry, sales fell below the previous year's level for 9 consecutive months nationwide, as consumers became more inclined to economize, apparel generally struggled due to unsettled weather, and weak inbound consumption continued.」

「In the department store industry, sales fell below the previous year's level for 6 consecutive months from March, amid weak consumer sentiment and the psychological impact of the Kumamoto Earthquake.」

「Trading conditions were difficult nationwide, as consumer sentiment weakened and apparel sales were sluggish due to weather-related factors, while the inbound tourism effect, which has been supporting sales particularly in major metropolitan areas, showed some signs of fading.」