Restructuring and Shakeout in the Home Improvement Retail Industry Amid Population Decline and Market Maturity
First written in FY2018. 3 of 6 entries say "Restated". Latest entry: FY2026.
Arclands moved to the "Worse" side of this theme in 2020.
1 other company's latest entry also says "Restated".
- FY2026RestatedAnnual report
「Considering the home improvement store industry, the Group’s core business, we believe that population decline and changes in consumer behavior are progressing and that the environment is not one in which the market can grow substantially. Competition, including from other business formats, is expected to intensify further, and as industry restructuring progresses, only companies among the industry’s leading group, or companies that attract consumer support, including those operating in other business formats, are expected to survive.」
Recognition of constraints on market growth from population decline and changes in consumer behavior, competition from other business formats, and industry restructuring and consolidation continued to be presented. - FY2021WorsenedAnnual report
「Considering the home improvement store industry, the Group’s core business, we believe that population decline and changes in consumer behavior are progressing and that the environment is not one in which the market can grow substantially. Competition, including from other business formats, is expected to intensify further, and as industry restructuring progresses, only companies among the industry’s leading group, or companies that attract consumer support, including those operating in other business formats, are expected to survive.」
In addition to constraints on market growth from population decline and changes in consumer behavior, intensifying competition from other business formats and ongoing industry restructuring were more clearly identified as risks of winners prevailing and weaker companies being eliminated. - FY2021-Q1WorsenedAnnual report
「Since 2000, growth in the home improvement retail market has remained flat, while the number of stores has continued to increase. In recent years, competition with businesses in other industries, including GMS retailers, drugstores, discount stores, 100-yen shops, low-priced interior and furniture specialty stores, and online shopping sites, has also intensified.」
In addition to flat market growth and an increasing number of stores, intensifying competition from diverse business formats outside the home improvement sector and from online businesses became more apparent, broadening the backdrop to the restructuring and consolidation risks associated with population decline and market maturity. - FY2020RestatedAnnual report
「Consumers have a strong sense of having satisfied their needs through the consumption of goods, and with population decline expected in the future, we believe the environment is not one in which the industry as a whole can achieve substantial growth. We believe this is leading to increasingly intense competition among companies and an environment in which the industry is moving inevitably toward restructuring that extends beyond the industry itself.」
The risk of industry restructuring and consolidation against a backdrop of consumer satisfaction with current consumption, population decline and market maturity continues to be described. - FY2019RestatedAnnual report
「Consumers have a strong sense of having satisfied their needs through the consumption of goods, and with population decline expected in the future, we believe the environment is not one in which the industry as a whole can achieve substantial growth. We believe this is leading to increasingly intense competition among companies and an environment in which the industry is moving inevitably toward restructuring that extends beyond the industry itself.」
The risk of restructuring and consolidation in the home improvement store industry against a backdrop of population decline, market maturity and consumer satisfaction with current consumption has also been explicitly identified in the annual report. - FY2018First statedAnnual report
「Consumers have a strong sense of having satisfied their needs through the consumption of goods, and with population decline expected in the future, we believe the environment is not one in which the industry as a whole can achieve substantial growth. We believe this is leading to increasingly intense competition among companies and an environment in which the industry is moving inevitably toward restructuring that extends beyond the industry itself.」
The difficulty of achieving substantial market growth due to consumption satisfaction and population decline is identified as a business-environment risk, along with the possibility of cross-industry restructuring and corporate consolidation.