Vending machine market saturation, intensifying competition, and declining profitability
First written in FY2016. 18 of 39 entries say "Worsened", first in FY2017-Q1. Latest entry: FY2027-H1.
Aseed Holdings moved to the "Worse" side of this theme in 2016, 4 years before the typical company in this theme (2020).
The whole theme swung hardest in 2019: 4 of 9 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「In the vending-machine operated retail business, continued food-price increases are affecting consumers’ preference for thrift, accelerating their move away from vending machines and increasing momentum for further industry restructuring.」
In addition to the previous decline in sales volumes caused by price increases and consumers’ preference for saving, the company explains that continuing food price increases are accelerating consumers’ shift away from vending machines and heightening momentum for further industry consolidation. - FY2026WorsenedAnnual report
「In the vending-machine retail operations business, successive price increases by manufacturers and consumers’ thrift-conscious behaviour have accelerated the decline in vending-machine purchases, while momentum for industry consolidation is building.」
The company states that the decline in sales volumes caused by price increases for manufacturers’ products and consumers’ shift away from vending machines due to their preference for saving has accelerated, expressing the severity of the business environment in stronger terms. - FY2026-H1WorsenedAnnual report
「In the vending machine retail business, difficult conditions continue, including successive price increases for manufacturers’ products, lower sales volumes as consumers favor saving, and higher costs associated with cashless payment support,」
Successive price increases for manufacturers’ products, lower sales volumes due to consumers’ preference for saving, and higher costs associated with cashless payment support are identified as factors making the profitability environment for the vending machine retail business even more challenging. The decline in sales volumes and increase in costs are described as conditions that actually occurred during the interim period. - FY2025-H1MaterialisedAnnual report
「Although sales volumes remained sluggish following price revisions, the company worked to maintain and expand sales by securing new trading areas through M&A. As a result, revenue from the vending machine retail business was ¥7,283 million, up 3.4% year on year, and segment profit was ¥196 million, down 12.3%.」
Sluggish sales volumes following price revisions resulted in a 12.3% year-on-year decline in segment profit, demonstrating the actual impact of profitability pressure from price revisions and market conditions. Revenue, however, increased 3.4%. - FY2024RestatedAnnual report
「The domestic business environment surrounding the beverage-related business is expected to become increasingly challenging.」
The company has reconfirmed its recognition that the challenging business environment for domestic beverage-related operations will continue. - FY2024-Q3MitigatedAnnual report
「As a result, revenue from the vending machine retail business was ¥10,732 million, up 9.1% from the same quarter of the previous year, and segment profit was ¥237 million, up 54.4%.」
The company reviewed operations in response to soaring procurement and logistics costs, improved productivity, and optimized selling prices, among other measures. Revenue and segment profit from the vending machine retail business exceeded the previous year’s levels, indicating improvement in profitability despite pressure from market competition and higher costs. - FY2024-Q2MitigatedAnnual report
「As a result, revenue from the vending machine retail business was ¥7,302 million, up 8.3% from the same quarter of the previous year, and segment profit was ¥217 million, up 136.4%.」
Revenue from the vending machine retail business increased 8.3% year on year, and segment profit increased 136.4%, indicating continued improvement in profitability despite pressure from intensifying competition and higher costs. Although the figures indicate the impact of risk, the cited passage describes the results of improvement, not the emergence of a new risk. - FY2024-Q1MitigatedAnnual report
「As a result, revenue from the vending machine retail business was ¥3,346 million, up 5.3% from the same quarter of the previous year, and segment profit was ¥28 million, up 93.1% year on year.」
Revenue from the vending machine retail business increased 5.3% year on year to ¥3,346 million, and segment profit was ¥28 million, an improvement of 93.1% from the same quarter of the previous year. Profitability has continued to improve despite the challenging conditions caused by market competition and other factors. - FY2023MitigatedAnnual report
「In the vending-machine retail business, we worked to improve profitability by raising productivity in response to higher production and logistics costs and revising product prices. As a result, revenue from the vending-machine retail business was ¥12,836 million, up 3.6% year on year, and segment profit was ¥112 million, compared with a segment loss of ¥54 million in the same period of the previous year.」
Although the challenging environment caused by intensifying competition and higher costs continues, productivity improvements and product price revisions improved the vending machine retail business from a segment loss in the previous year to profit of ¥112 million. - FY2023-Q3MitigatedAnnual report
「As a result, sales in the vending-machine operated retail business were ¥9,836 million, up 2.8% year on year, and segment profit was ¥154 million, compared with segment profit of ¥11 million in the same quarter of the previous year.」
Revenue from the vending machine retail business increased 2.8% year on year, and segment profit increased from ¥11 million to ¥154 million. Conditions affecting profitability due to market competition and other factors showed improvement. - FY2023-Q2MitigatedAnnual report
「In the vending machine operator industry, signs of a recovery in personal consumption emerged amid favorable weather. Revenue exceeded that of the same quarter of the previous year for the second consecutive quarter following the first quarter, and profitability also improved. As a result, revenue from the vending machine retail business was ¥6,739 million, up 4.2% year on year, and segment profit was ¥91 million, up 410.8%.」
Against a backdrop of recovering personal consumption, revenue from the vending machine retail business increased 4.2% year on year, and segment profit improved to approximately four times the previous year’s level. - FY2023-Q1MitigatedAnnual report
「In the vending machine operations business, revenue exceeded that of the same quarter of the previous year and profitability also improved as personal consumption recovered. As a result, revenue from the vending machine retail business was ¥3,176 million, up 3.3% year on year, and segment profit was ¥14 million, compared with a segment loss of ¥15 million in the same quarter of the previous year.」
As personal consumption recovered, revenue from the vending machine retail business increased 3.3% year on year, and profitability improved from a segment loss to profit of ¥14 million. - FY2022-Q3RestatedAnnual report
「In the vending-machine operations business, sales for October–December remained broadly at the prior-year level because the return of users to leisure facilities and gaming halls was slow, while challenging conditions continued in terms of profitability.」
The company has reconfirmed its recognition that profitability in the vending machine operations business remains under pressure due to the slow recovery in users of leisure facilities and gaming venues. - FY2022-Q2RestatedAnnual report
「In the vending-machine operator industry, sales are on a recovery trend from the sharp decline in the same quarter of the previous year, but challenging conditions continue in terms of profitability.」
Although revenue is on a recovery trend from the sharp decline in the same quarter of the previous year, the company has reconfirmed its recognition that profitability in the vending machine operator industry remains under pressure. - FY2022-Q1RestatedAnnual report
「In the vending-machine operator industry, sales are on a recovery trend from the sharp decline in the same quarter of the previous year, but challenging conditions continue in terms of profitability.」
Although revenue is on a recovery trend from the sharp decline in the same quarter of the previous year, the company recognizes that profitability in the vending machine operator industry remains under pressure. - FY2021-Q3RestatedAnnual report
「Although outdoor locations have recovered substantially, the challenging environment has continued, particularly at indoor locations such as tourist destinations and leisure facilities where telework has become established and visitor numbers have been slow to recover. Overall revenue for October–December was substantially below the previous year’s level. As a result, revenue from the vending machine retail business was ¥9,031 million, down 22.1% from the same quarter of the previous year, and the segment recorded a loss of ¥40 million, compared with segment profit of ¥181 million in the same quarter of the previous year.」
While outdoor locations have shown signs of recovery, the challenging environment at indoor locations has continued due to telework and the slow recovery in visitor numbers at tourist destinations and leisure facilities, affecting revenue, which declined 22.1%, and resulting in a segment loss of ¥40 million. - FY2021-Q2RestatedAnnual report
「Although outdoor locations have recovered substantially, the challenging environment has continued, particularly at indoor locations such as tourist destinations and leisure facilities where telework has become established and visitor numbers have been slow to recover. Overall revenue for July–September was substantially below the previous year’s level. As a result, revenue from the vending machine retail business was ¥5,925 million, down 26.2% from the same quarter of the previous year, and the segment recorded a loss of ¥42 million, compared with segment profit of ¥178 million in the same quarter of the previous year.」
While outdoor locations have shown signs of recovery, the challenging environment has continued, particularly at indoor locations, due to telework and the slow recovery in visitor numbers at tourist destinations and leisure facilities. The impact has continued, reflected in a 26.2% decline in revenue and a segment loss of ¥42 million. - FY2021-Q1WorsenedAnnual report
「Particularly in April and May, the business environment changed dramatically as people refrained from nonessential, nonurgent outings, telework increased, and stores and leisure facilities suspended operations, resulting in unprecedentedly sharp declines in revenue and segment profit. Although revenue began to recover in June, centered on vending machines at outdoor locations, sales remained sluggish, particularly at locations such as tourist destinations and leisure facilities where visitor numbers were not expected to return to previous levels, and overall sales continued to fall below the previous year’s level.」
In addition to the challenging environment caused by saturation in the vending machine market and competition from other industries, restrictions on outings, telework, and closures of stores and leisure facilities due to the spread of COVID-19 coincided, resulting in unprecedentedly sharp declines in revenue and segment profit. The risk became more severe and was reflected in the figures. - FY2020WorsenedAnnual report
「Sales volumes from vending machines installed in office break rooms and outdoor leisure facilities, among other locations, also declined due to the spread of COVID-19 and the adoption of telework. As a result, revenue from the vending machine retail business was ¥14,911 million, down 5.4% year on year, and segment profit was ¥127 million, down 49.2%.」
In addition to the previous market saturation, price competition, and rising labor costs, the spread of COVID-19 and telework led to lower sales volumes, reflected in a 5.4% decline in revenue and a 49.2% decline in segment profit. - FY2020-Q2RestatedAnnual report
「In the vending-machine operator industry, the business environment remains challenging due to declining profitability resulting from intensifying competition in the beverage business across industries and business formats, as well as rising labor and logistics costs amid labor shortages and recruitment difficulties, while vending-machine locations and installed units remain saturated.」
The company has reconfirmed that the challenging environment continues, marked by saturation of vending machine locations and installed machine numbers, competition from other industries, and rising labor and logistics costs due to labor shortages and difficulties in recruiting personnel. - FY2020-Q1RestatedAnnual report
「In the vending-machine operator (operated retail) industry, the business environment remains challenging due to declining profitability resulting from intensifying competition across industries and business formats, as well as rising labor and logistics costs amid labor shortages and recruitment difficulties, while vending-machine locations and installed units remain saturated.」
The company has reconfirmed that the challenging environment continues, marked by saturation of vending machine locations and installed machine numbers, competition from other industries, declining profitability, and rising labor and logistics costs due to labor shortages and difficulties in recruiting personnel. - FY2019MaterialisedAnnual report
「Sales volumes in the vending machine retail business remained sluggish due to price-cutting by major mass retailers and competition from drugstores and convenience stores, among other factors. As a result, revenue was ¥15,758 million, down 4.2% from the previous consolidated fiscal year.」
Competition from mass retailers, drugstores, and convenience stores has materialized in sluggish sales volumes and a 4.2% decline in revenue from the vending machine retail business. - FY2019-Q3WorsenedAnnual report
「The environment surrounding beverage vending machines remains highly competitive, as discount vending machines, convenience stores and food supermarkets, together with drugstore chains, are stepping up price-cutting sales, intensifying competition across industries and business formats.」
In addition to the previous competition from discount vending machines, convenience stores, and food supermarkets, the company explicitly identifies aggressive price-cutting by drugstore chains as a new competitive factor. - FY2019-Q2RestatedAnnual report
「In the vending-machine operator (operated retail) industry, the business environment remains challenging due to declining profitability resulting from intensifying competition across industries and business formats, as well as rising labor and logistics costs amid labor shortages and recruitment difficulties, while vending-machine locations and installed units remain saturated.」
The company has reconfirmed that the challenging environment continues, marked by saturation of vending machine locations and installed machine numbers, cross-industry competition, declining profitability, and rising labor and logistics costs due to labor shortages and difficulties in recruiting personnel. - FY2019-Q1RestatedAnnual report
「In the vending-machine operator (operated retail) industry, the business environment remains challenging due to declining profitability resulting from intensifying competition across industries and business formats, as well as rising labor and logistics costs amid labor shortages and recruitment difficulties, while vending-machine locations and installed units remain saturated.」
The company has reconfirmed that the challenging environment continues, marked by saturation of vending machine locations and installed machine numbers, cross-industry competition, and rising labor and logistics costs due to labor shortages and difficulties in recruiting personnel. - FY2018WorsenedAnnual report
「In the vending-machine operator (operated retail) industry, the business environment remains challenging due to declining profitability resulting from intensifying competition across industries and business formats, as well as rising labor and logistics costs amid labor shortages and recruitment difficulties, while vending-machine locations and installed units remain saturated.」
In addition to the low profitability resulting from market saturation, saturation in the number of installed machines, and intensifying competition, the company explicitly identifies rising labor and logistics costs due to labor shortages and difficulties in recruiting personnel as new sources of pressure. - FY2018-Q3WorsenedAnnual report
「The vending-machine channel, centered on soft drinks, is rapidly becoming less profitable due to competition with convenience stores and mass retailers, as well as the proliferation of low-price vendors.」
In addition to competition from convenience stores and mass retailers, the company explicitly identifies the proliferation of low-price vendors as causing a rapid decline in profitability. - FY2018-Q2WorsenedAnnual report
「Regarding “smart stores,” convenience store chains have also entered the same business model, namely vending machine convenience stores, and the market is expanding.」
The company explains that convenience store chains have entered the smart-store business, broadening the competitive landscape. At the same time, it states that the market itself is expanding. - FY2018-Q1WorsenedAnnual report
「In the vending-machine operator and retail industry, the business environment remains challenging because locations and installed-machine numbers remain saturated, competition across industries and business formats is intensifying, and recruitment difficulties are causing labor shortages.」
In addition to the previous market saturation and intensifying competition, the company identifies cross-industry competition and labor shortages caused by difficulties in recruiting personnel as factors contributing to the challenging business environment. - FY2017-Q3RestatedAnnual report
「In the vending-machine operator, or operations and retail, industry, vending-machine locations and installed-machine numbers remain saturated, while excessive competition to install machines is increasing the number of vending machines, particularly outdoors, that adversely affect the environment and landscape.」
The company has reconfirmed its recognition that saturation of vending machine locations and installed machine numbers, as well as excessive competition to install machines, continues. - FY2017-Q2WorsenedAnnual report
「Since prices were revised in response to the consumption tax rate increase, competition in the vending machine channel has intensified, particularly at outdoor locations, with discount vendors and convenience stores.」
The company identifies intensifying competition from discount vendors and convenience stores as a new specific factor affecting the vending machine channel. - FY2017-Q1WorsenedAnnual report
「As the market fails to grow, excessive competition for vending-machine locations is intensifying, and sales per vending machine are deteriorating year after year.」
In addition to the previously identified market saturation and intensifying competition, the company explicitly states that sales per vending machine have deteriorated year after year, describing the decline in profitability in more serious terms. - FY2016First statedAnnual report
「In the vending-machine operator industry, the number of installed machines remains saturated, while the proliferation of outdoor vending machines is adversely affecting environmental conservation and the landscape. We recognize that this situation cannot be overlooked from a CSR perspective.」
The company recognizes saturation in the number of installed machines, declining profitability, and ongoing industry consolidation as its current business environment.