Cost Increases from Labor Shortages and Rising Logistics Expenses
First written in FY2019-Q2. 6 of 14 entries say "Worsened", first in FY2019-Q3. Latest entry: 2026-08-06.
Yamada Holdings moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
20 other companies' latest entry also says "Mitigated".
- 2026-08-06MitigatedEarnings presentation
「The decline in gross margin was more than offset by the reduction in the SG&A ratio, resulting in a higher operating margin.」
Although personnel and advertising expenses increased, the SG&A ratio declined from 27.8% in the same period of the previous year to 26.2%, and the Electronics segment’s operating margin improved. - FY2026WorsenedAnnual report
「Selling, general and administrative expenses for the consolidated fiscal year increased 2.6% year on year to ¥425,481 million. This was despite continued expense reductions and controls, as rents, depreciation and amortization, and personnel costs increased with the intensified development of stores, including new LIFE SELECT locations」
Despite expense reductions and controls, selling, general and administrative expenses increased 2.6% year on year due to higher rents, depreciation and amortization, and personnel costs associated with LIFE SELECT store openings and other developments. - FY2026-H1MitigatedAnnual report
「A downward trend in sales resulting from store closures, including large stores such as LABI Tsudanuma and LABI Sendai, as store consolidation progressed」
While store consolidation led to lower sales, the Company explained that it kept increases in personnel, advertising and promotional expenses under control by consolidating stores and shifting to digital advertising. - FY2025-H1MitigatedAnnual report
「In addition to improving store productivity through the consolidation and closure of stores in line with LIFE SELECT openings, we have been able to contain increases in personnel, advertising and other expenses through initiatives to optimize advertising and promotions, including strengthening digital advertising in place of printed flyers.」
The Company explained that it kept increases in personnel, advertising and promotional expenses under control through store consolidation, productivity improvements and stronger digital advertising. - FY2024-Q3WorsenedAnnual report
「Selling, general and administrative expenses for the nine-month consolidated period ended the third quarter amounted to ¥306,339 million, up 1.7% year on year, owing to increased hiring associated with the expansion of sales-floor space and increases in various selling, general and administrative expenses, primarily distribution costs resulting from higher energy prices.」
Selling and administrative expenses increased 1.7% year on year due to stronger recruitment associated with expanded sales floor area and higher logistics expenses resulting from rising energy prices. - FY2024-Q2WorsenedAnnual report
「Selling, general and administrative expenses for the six months ended the second quarter increased 1.3% year on year to ¥205,204 million, mainly due to higher logistics expenses resulting from rising energy prices and increases in various selling and administrative expenses associated with strengthening recruitment as sales floor area expanded」
Selling and administrative expenses increased 1.3% year on year due to stronger recruitment associated with expanded sales floor area and higher logistics expenses resulting from rising energy prices. - FY2023WorsenedAnnual report
「High-priced, energy-efficient air conditioners and refrigerators performed well. Large-capacity, high-function washing machines that reduce household chores and cooking appliances designed with time efficiency in mind also performed well.」
While product costs and other expenses increased against a backdrop of surging energy and raw material prices, demand for energy-efficient and high-function products grew. The drivers of higher costs broadened beyond the previously cited labor and logistics expenses to include energy prices and other factors. - FY2022-Q1RestatedAnnual report
「In addition, higher labor costs resulting from labor shortages and higher costs resulting from rising logistics expenses are beginning to emerge as medium- to long-term challenges in Japan, where population aging and decline are advancing.」
The Company continued to recognize labor shortages, higher labor costs and rising logistics expenses as medium- to long-term challenges associated with population aging and decline. - FY2021-Q3RestatedAnnual report
「In addition, higher labor costs resulting from labor shortages and higher costs resulting from rising logistics expenses are beginning to emerge as medium- to long-term challenges in Japan, where population aging and decline are advancing.」
The Company continued to recognize labor shortages, higher labor costs and rising logistics expenses as medium- to long-term challenges associated with population aging and decline. - FY2020-Q2RestatedAnnual report
「Costs have been trending upward due to higher labor costs resulting from labor shortages and rising logistics expenses. In Japan, where the declining birthrate, population aging and population decline are advancing, these issues are beginning to emerge as social challenges.」
The Company continued to recognize labor shortages, higher labor costs and rising logistics expenses as social challenges. - FY2020-Q1RestatedAnnual report
「Costs have been trending upward due to higher labor costs resulting from labor shortages and rising logistics expenses. In Japan, where the declining birthrate, population aging and population decline are advancing, these issues are beginning to emerge as medium- to long-term challenges.」
The Company continued to describe labor shortages, higher labor costs and rising logistics expenses as medium- to long-term challenges. Selling, general and administrative expenses increased 4.3% year on year in the quarter. - FY2019WorsenedAnnual report
「The difficult environment across the retail industry is expected to continue, due to further cost increases including higher labor costs resulting from labor shortages, rising logistics expenses and electricity charges, as well as population aging and decline, changing consumer lifestyles and intensifying competition across industries and business formats.」
In addition to the previously cited increases in labor and logistics costs, rising electricity charges were identified as another driver of higher costs, and the Company explained that a difficult environment would continue alongside medium- to long-term demographic trends and intensifying competition. - FY2019-Q3WorsenedAnnual report
「Across the retail industry, costs have been trending upward due to higher labor costs resulting from labor shortages and rising logistics expenses. In Japan, where the declining birthrate, population aging and population decline are advancing, these issues are beginning to emerge as medium- to long-term challenges.」
The description was strengthened to characterize labor shortages and rising logistics expenses not merely as temporary factors but as medium- to long-term challenges associated with population aging and population decline. Selling, general and administrative expenses also increased 3.4% year on year. - FY2019-Q2MaterialisedAnnual report
「Across the retail industry, costs have been trending upward due to worsening labor shortages and rising logistics expenses. Selling, general and administrative expenses for the six months ended the second quarter increased 2.0% year on year to ¥206,068 million, due to higher personnel and logistics costs resulting from nationwide labor shortages caused by extreme heat and disaster recovery efforts, as well as higher fees associated with opening stores on Yahoo! Shopping (opened in August of the previous year) and Rakuten Ichiba (opened in July of the current year).」
Labor shortages and rising logistics expenses were identified for the first time as drivers of higher costs across the industry, while selling, general and administrative expenses, including higher personnel and logistics costs, increased 2.0% year on year in the quarter.