Risks of Insufficient Recruitment and Training of Personnel and Rising Labor Costs
First written in FY2021. 5 of 9 entries say "Worsened", first in FY2025-H1. Latest entry: FY2027-H1.
Arclands moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 15 of 29 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「The business environment also remains subject to a continuing cost burden from higher personnel and logistics expenses, among other factors.」
The continuing cost burden from higher personnel and logistics expenses was noted, and the risk of rising personnel expenses continued to be cited as a burden on the business environment. - FY2026WorsenedAnnual report
「Although the company achieved some success in containing selling, general and administrative expenses through the shift of advertising to digital channels and logistics efficiency improvements, higher new-store opening costs, increased payment processing fees accompanying the higher ratio of credit card and QR payments, higher unit labor costs, and increased utility expenses were burdens.」
Higher unit labor costs, together with new-store opening costs, payment processing fees, and utility expenses, became actual cost burdens. - 2026-04-14WorsenedEarnings forecast revision
「Higher costs for new store openings, increased sales commissions due to the higher proportion of credit-card and QR-code payments, higher unit labor costs, and increased utilities expenses weighed on results.」
Higher unit labor costs were cited as a cost burden together with new store opening costs and higher utilities expenses. - FY2026-H1WorsenedAnnual report
「In addition to the improvement in gross margin, the company achieved some success in containing selling, general and administrative expenses through the shift of advertising to digital channels and logistics efficiency improvements. However, higher new-store opening costs, unit labor costs, and utility expenses were a burden.」
Higher unit labor costs, together with new-store opening costs and higher utility expenses, became actual cost burdens and put pressure on profit in the retail business. - FY2025MitigatedAnnual report
「The company is working to secure outstanding personnel at an early stage through scouting activities and early internships, and to develop personnel through human resources systems that emphasize performance and ability, as well as education and training programs that help improve capabilities.」
Measures addressing the risks of insufficient hiring and development and rising labor costs continued to be presented, including scouting, early internships, human resources systems, and education and training. A 2030 target was also set for human capital. - FY2025-H1WorsenedAnnual report
「In addition, rising labor and logistics costs, as well as intensifying competition from online shopping and other business formats, are creating a challenging environment for the industry as a whole.」
In connection with personnel shortages and the risk of rising labor costs, higher labor and logistics costs were identified as factors contributing to the challenging environment in the retail industry during the interim period. - FY2024MitigatedAnnual report
「The company is working to secure outstanding personnel at an early stage through scouting activities and early internships, and to develop personnel through human resources systems that emphasize performance and ability, as well as education and training programs that help improve capabilities.」
The company continued to present measures addressing the risk of insufficient hiring and development through scouting, early internships, human resources systems, and education and training. - FY2022MitigatedAnnual report
「The company is working to secure outstanding personnel at an early stage through scouting activities and early internships, and to develop personnel through human resources systems that emphasize performance and ability, as well as education and training programs that help improve capabilities.」
Specific measures were established to address the risks of insufficient hiring and development of personnel and rising labor costs, including scouting, early internships, human resources systems, and education and training. - FY2021First statedAnnual report
「If, due to the declining birthrate, aging population, changes in employment conditions, or other factors, the hiring and development of personnel do not progress as planned and the company is unable to secure the personnel required to operate its businesses, or if labor costs increase because of higher prevailing wages or amendments to labor laws and regulations, this could adversely affect the Group's business development and performance.」
Securing and developing personnel required for new store openings and business expansion, as well as rising labor costs, were disclosed as an independent business risk for the first time.