Higher Labor Costs Due to Minimum Wage Increases, Social Insurance Premiums, etc.

「On the earnings front, in addition to stronger price competitiveness in food and the effect of the reversal of the prior year's rice-demand surge, sluggish apparel and home-and-leisure sales due to unfavorable weather and higher personnel expenses resulted in an operating loss of ¥13.297 billion, a decline of ¥9.653 billion from the prior-year period.」

「In addition, the Group employs approximately 490,000 part-time employees in Japan, and part-time employees' wages have been raised by 7% or more for the 4th consecutive year.」

「At イオン北海道㈱, revenue reached a record high at 109.9% of the prior-year period level, while gross operating profit was 108.0%. However, the company was unable to absorb higher costs resulting from investment in human resources and rising prices, resulting in lower profit at every level.」

「Wages for approximately 440,000 part-time employees, who account for 80% of the workforce, were raised by 7% for the 3rd consecutive year.」

「Selling, general and administrative expenses increased substantially to 106.7% of the prior-year period level due to higher depreciation expenses associated with expanded investment in digital transformation and energy conservation, higher labor costs resulting from wage increases, and upfront investment in イオンウエルシア九州㈱, resulting in lower profit at every level below operating profit.」

「Operating profit declined in the GMS (general merchandise store) and SM (supermarket) businesses, which have strategically increased hourly workers' wages for 2 consecutive fiscal years, and in the Health & Wellness business, where selling, general and administrative expenses increased alongside labor costs due to the strengthening of its points program.」

「In response to the inevitability of higher labor costs resulting from the amended employment laws from January onward,」

「However, changes in the population structure resulting from the declining birthrate and aging population, among other factors, may cause the plan to fail to progress as scheduled. In addition, tightening labor supply and demand may increase employee-related costs, while the Group's initiatives and disclosures concerning human capital investment may be deemed inadequate. These factors may affect the business, financial condition and results of operations of the Group.」

「Changes in the population structure resulting from the declining birthrate and aging population, among other factors, may cause the plan to fail to progress as scheduled. In addition, tightening labor supply and demand may increase employee-related costs, potentially affecting the business, financial condition and results of operations of the Group.」

「Against a backdrop of soaring logistics and personnel costs and rising costs including procurement prices, United Supermarkets Holdings Co., Ltd. and its consolidated subsidiaries expanded joint procurement of products and materials and worked to contain costs.」

「Although selling, general and administrative expenses increased due to higher personnel expenses resulting from an increase in the hourly labor cost and higher electricity charges, these initiatives lifted existing-store sales to 101.2% year on year and total company sales to 102.2%, resulting in an improvement in operating income.」

「Operating profit was ¥10,868 million (68.9% of the corresponding prior-period figure), owing to higher personnel expenses associated with the expanded application of social insurance and higher advertising and promotional expenses resulting from stronger promotions.」

「Employee-related costs may increase due to various factors, including increases in Employees' Pension Insurance premium rates, employment insurance premium rates and health insurance association premium rates, increases in the minimum wage, and future amendments to labor laws.」