Impact of COVID-19 on Consumer Spending, Store Traffic and Product Supply

「The principal risks among the matters concerning the business and accounting conditions described in the annual securities report that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies are as follows.」

「During the consolidated fiscal year under review, Japan's economy showed signs of a gradual recovery as personal consumption, particularly consumption associated with increased opportunities to go out, recovered following the reclassification of COVID-19 as a Class 5 disease, while economic activity normalised amid increased inbound demand and other factors.」

「During the first three quarters of the consolidated fiscal year under review, Japan's economy gradually recovered as economic activity normalised following the reclassification of COVID-19 as a Class 5 disease, although」

「The normalisation of economic activity advanced after COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law, although the economy entered a gradual recovery trend」

「During the first quarter of the consolidated fiscal year under review, Japan's economy continued on a gradual recovery trend as economic activity normalised with the easing impact of COVID-19, although」

「During the consolidated fiscal year under review, Japan's economy showed signs of a gradual recovery as social and economic activity gradually normalised following the easing of restrictions on movement, despite the spread of COVID-19 during the sixth through eighth waves.」

「The business environment surrounding corporate earnings became increasingly challenging due to the renewed spread of COVID-19 caused by new variants, the prolonged invasion of Ukraine and surging energy prices.」

「In the retail business, food sales were affected by the reaction from last year's demand for at-home meals, while demand for apparel and daily necessities showed signs of strengthening as customer traffic recovered. However, customer traffic had not returned to pre-pandemic levels, and conditions remained challenging.」

「During the first 3 months of the fiscal year under review, signs of economic reopening emerged as the vaccination rate increased while the impact of COVID-19 persisted. However, uncertainty about the outlook continued due to surging raw-material prices, the rapid depreciation of the yen, and the impact of geopolitical risks arising from the increasingly tense situation in Ukraine.」

「In the retail business, conditions remained difficult, including delayed recovery in apparel and household goods sales and sluggish food product sales, owing to the adverse effects of closures and reduced operating hours at large stores and the reversal of the previous year's stay-at-home demand.」

「In the retail business, the application of the state of emergency and priority preventive measures in our trading area led to continued difficult conditions, including fewer customers at large stores because of closures and reduced operating hours, delayed recovery in apparel and household goods sales and sluggish food product sales, compounded by the reversal of stay-at-home demand in the previous corresponding period.」

「In the retail business, the reissuance of the state of emergency in our trading area forced large stores to close or reduce their operating hours, resulting in fewer store visitors and delaying the recovery of apparel and household goods sales, while food products remained solid amid continued demand for at-home meals」

「During the current consolidated fiscal year, Japan's economy deteriorated rapidly as the spread of COVID-19 restricted domestic and overseas economic activity. Personal consumption declined as people refrained from going out and faced travel restrictions.」

「Although the government's “Go To Campaign” and other demand-stimulus measures supported economic activity after the state of emergency was lifted, the renewed spread of infection has made the path to economic recovery unforeseeable, and the outlook remains uncertain.」

「The peripheral retail business is primarily engaged in the manufacture and sale of prepared foods such as delicatessen products. Although we continued to pursue thorough quality and hygiene control, strengthen product development and improve productivity, conditions remained extremely difficult as the spread of COVID-19 reduced supplies to major customers in the delicatessen business and reduced customer traffic at restaurants.」

「The peripheral retail business is primarily engaged in the manufacture and sale of prepared foods such as delicatessen products. Although we continued to pursue thorough quality and hygiene control, strengthen product development capabilities and improve productivity, revenue declined substantially as supply decreased due to weak sales at major business partners and the food-service division voluntarily suspended operations following the government's declaration of a state of emergency in response to COVID-19.」

「The impact of COVID-19 on our Group is expected to include sluggish personal consumption, fewer customers visiting stores and delays in product supply. Depending on the spread of the infection, the Group's operating performance could also be affected by voluntary suspension of business activities or the closure of stores and facilities.」