Economic Conditions, Price Competition, Cross-Industry Competition, Consumer Trends, and Climate Change Risks

「The Group's business is centered on retail. Its business results and financial position may be affected by factors in the external environment surrounding this business, including future economic trends, intensifying price competition, developments in competition with companies in the same and other industries, changes in tax systems affecting consumers, climate change, geopolitical risks and international conditions.」

「Customer traffic decreased 5.0% year on year owing to continued cost-conscious consumer behavior and the反動 from the previous year's special demand related to disaster preparedness.」

「In the distribution industry, the Group's business area, competition across industries and business formats has intensified further, while rising labor and logistics costs have put pressure on profits. In addition, prices of necessities have risen, including persistently high rice prices, affecting household budgets and strengthening consumers' preference for saving, leaving the operating environment highly uncertain.」

「In the distribution industry, the Group's business area, improvement in consumer sentiment has been limited as rising prices have heightened consumers' focus on protecting household budgets and their preference for saving. The operating environment has remained challenging amid rising labor, utility and delivery costs, as well as intensifying competition across industries and business formats.」

「Meanwhile, the outlook remains uncertain as the yen's rapid depreciation, concerns about a slowdown in overseas economies, instability in Ukraine and the Middle East, and persistently high energy and material prices continue. In the Group's business areas, continued price increases across a broad range of products have heightened consumers' preference for saving and low prices, while costs such as labor and logistics expenses have also risen, leaving the operating environment challenging.」

「The challenging operating environment has continued amid the impact of global monetary tightening, heightened consumer focus on protecting household budgets due to rising prices for necessities against a backdrop of high energy prices and yen depreciation, and increases in labor and logistics costs.」

「However, uncertainty surrounding Japan's economy and prices remains extremely high due to overseas economic and price trends, persistently high energy prices and rising wages.」

「During the fiscal year, COVID-19 resurged in its eighth wave from October but gradually subsided. The easing of restrictions on events and support for domestic travel helped restore the flow of people, and signs of recovery in social and economic activity, including inbound consumption, emerged. However, the outlook for the operating environment remained uncertain due to the prolonged Russian invasion of Ukraine, the resulting increases in energy and raw material prices, and rapid fluctuations in foreign exchange rates.」

「During the cumulative third quarter, Japan's economy remained uncertain as historically high inflation and deteriorating overseas economies were compounded by concerns including the resurgence of COVID-19 in its eighth wave from October and rising long-term interest rates following the Bank of Japan's policy adjustment to monetary easing.」

「During the cumulative second quarter, Japan's economy faced a more challenging external environment than initially expected. Although restrictions on activity were eased and social and economic activity moved toward normalization, the prolonged situation in Ukraine and rising raw material prices due to the yen's depreciation weighed on conditions. In the distribution industry, the Group's principal business area, historically high inflation heightened consumers' focus on protecting their household budgets, while procurement prices for food and daily necessities and energy costs, including utility expenses driven by high resource prices, continued to rise, making the operating environment increasingly challenging.」

「During the cumulative first quarter, social and economic conditions remained unstable due to the heightened tensions surrounding Ukraine and soaring resource prices, despite moves toward normalizing economic activity. In the distribution industry, stay-at-home demand generated by COVID-19 was also settling down, while the operating environment remained challenging amid intensifying competition across industries and business formats and soaring costs, including utility expenses.」

「In this business, building materials and gardening products performed well, but the decline following the pullback in stay-at-home demand caused same-store sales, excluding the impact of applying the revenue recognition accounting standard and other factors, to decrease 3.4% year on year at the 3 companies 株式会社ダイユーエイト, 株式会社ホームセンターバロー and 株式会社タイム.」

「In this business, gardening and outdoor products performed well, but in addition to the decline following the pullback in stay-at-home demand, unfavorable weather in August 2021 weighed on results. Same-store sales, excluding the impact of applying the revenue recognition accounting standard and other factors, decreased 5.4% year on year at the 3 companies 株式会社ダイユーエイト, 株式会社ホームセンターバロー and 株式会社タイム.」

「During the cumulative first quarter, Japan's economy remained challenging due to COVID-19, but continued to show signs of recovery, partly as vaccination progressed. However, concerns about future infection trends left the economic outlook highly uncertain.」

「Although the containment of COVID-19 is expected to progress with vaccination, concerns about the spread of variants mean that the uncertain situation is expected to continue.」

「There were no occurrences during the cumulative third quarter of matters relating to the business, financial conditions or other items described in this quarterly report that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, and no significant changes to the business and other risks described in the annual securities report for the previous fiscal year. The spread of COVID-19 may affect the Company's business and results.」

「During the cumulative second quarter, Japan's economy remained challenging due to the impact of COVID-19, although signs of recovery emerged as economic activity was gradually restored. However, there were still no signs of the pandemic coming under control globally, leaving the economic outlook highly uncertain.」

「During the cumulative first quarter, Japan's economy remained extremely challenging due to the impact of COVID-19, although economic activity began to recover gradually as requests for business closures affecting certain industries were eased. However, there were still no signs of the pandemic coming under control globally, and the number of infections was rising again in Japan, leaving the economic outlook highly uncertain.」

「During the fiscal year, Japan's economy remained on a moderate recovery path, but the economic outlook remained uncertain as the impact of COVID-19 increased downside risks to the domestic and overseas economies.」

「There were no occurrences of matters relating to the business, financial conditions or other items described in this quarterly report that could have a material impact on investors' decisions during the cumulative third quarter, and no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「During the cumulative second quarter, Japan's economy continued on a moderate recovery path, but the economic outlook remained uncertain amid concerns about the impact of US trade policies on the global economy. In the distribution industry, the challenging operating environment has continued amid intensifying competition across business formats and a growing sense of labor shortages.」

「During the cumulative first quarter, Japan's economy continued on a moderate recovery path, but the economic outlook remained uncertain amid concerns about the impact of US monetary and trade policies on the global economy. In the distribution industry, the challenging operating environment has continued amid intensifying competition across business formats and a growing sense of labor shortages.」

「During the cumulative third quarter, Japan's economy continued on a moderate recovery path, but personal consumption remained sluggish, and the economic outlook remained uncertain amid concerns about the impact of US monetary and trade policies on the global economy. In the retail industry, the challenging operating environment has continued amid intensifying competition across business formats and a growing sense of labor shortages.」

「The economic outlook remained uncertain amid concerns about the impact of US fiscal and trade policies and rising crude oil prices on the global economy. In the retail industry, the challenging operating environment has continued amid intensifying competition across business formats and a growing sense of labor shortages.」

「In the retail industry, the challenging operating environment has continued amid an oversupply of stores, intensifying competition across business formats and a growing sense of labor shortages.」

「In the retail industry, the challenging operating environment has continued amid an oversupply of stores, intensifying competition across business formats and a growing sense of labor shortages.」

「In the retail industry, the challenging operating environment has continued amid intensifying competition across business formats and a growing sense of labor shortages.」

「In the retail industry, the challenging operating environment has continued amid intensifying competition across business formats and a growing sense of labor shortages.」

「There were no occurrences of matters relating to the business, financial conditions or other items described in this quarterly report that could have a material impact on investors' decisions during the cumulative third quarter, and no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「There were no occurrences of matters relating to the business, financial conditions or other items described in this quarterly report that could have a material impact on investors' decisions during the cumulative second quarter, and no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」

「The outlook remained uncertain, amid concerns about the impact of the UK's decision to leave the European Union (EU) on the global economy. In the retail industry, competition across business formats has intensified, and the challenging operating environment has continued.」

「The Group's business results and financial position may be affected by factors including future economic trends, intensifying price competition, developments in competition with companies in the same and other industries, changes in tax systems affecting consumers, and climate change.」