Sensitivity of High-Priced Products to Consumer Spending Trends
First written in FY2016. 13 of 31 entries say "Restated". Latest entry: FY2026.
Mrk Holdings moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 53 of 68 companies on the "Worse" side.
10 other companies' latest entry also says "Other".
- FY2026Improving employment and income, alongside precautionary spending and uncertainty about the outlookAnnual report
「While employment and income conditions improved, including stronger wage growth against a backdrop of increasingly severe labour shortages, the outlook for the economy remained uncertain due to the impact of U.S. tariff policy and international conditions. In the retail industry, as consumers became increasingly focused on protecting their household finances amid continued price increases, severe competition across business formats continued.」
Alongside factors supporting improvements in employment and income conditions, the company notes uncertainty in the sales environment arising from consumers' focus on protecting their household finances amid rising prices, U.S. tariff policy, international conditions and intensifying competition. - FY2026-H1The recovery in personal consumption coexists with uncertainty in the external environmentAnnual report
「During the interim consolidated accounting period, Japan's economy remained on a moderate recovery trend as social and economic activity normalised, with personal consumption recovering against a backdrop of broader wage increases by companies and improvements in employment and income conditions. Meanwhile, the external environment continued to affect corporate activity, including the situation in Russia and Ukraine, geopolitical risks in the Middle East, and persistently high resource, raw material and energy prices. The outlook therefore remained uncertain.」
The company recognises improvements in employment and income conditions and a recovery in personal consumption, while also noting uncertainty caused by geopolitical risks and persistently high resource, raw material and energy prices. - FY2025-H1RestatedAnnual report
「In the retail industry, prices remained on an upward trend, while the recovery in personal consumption stalled, resulting in continued difficult operating conditions.」
The company continues to identify rising prices and the stalled recovery in personal consumption as risks to the sales environment for its retail business, including high-priced products. - FY2024Revenue headwinds from diverted consumer spending coexist with a recovery in the fourth quarterAnnual report
「Through the third quarter, both sales and profit remained below the previous year, due to the decline following front-loaded demand before product price increases for the fiscal year ended March 2023 and the diversification of consumer spending following the easing of restrictions accompanying the reclassification of COVID-19 to a Category 5 infectious disease. This temporarily reduced sales per customer, among other effects.」
The company explains that sales per customer, sales and profit declined through the third quarter due to the pullback in front-loaded demand before the price increase and the diversion of consumer spending to tourism and leisure, while sales rose sharply in the fourth quarter following the launch of new products. - FY2024-Q3MaterialisedAnnual report
「In addition to lower sales due to the反動 from front-loaded demand before price increases in the same period of the previous year, average spending per customer temporarily declined and sales struggled amid diversified consumption, including tourism and leisure following the easing of restrictions.」
The pullback in front-loaded demand before the price increase and the diversion of consumer spending to tourism and leisure continue to weigh on sales per customer and sales of existing products. - FY2024-Q2MaterialisedAnnual report
「In the women's lingerie and related businesses, existing customers became more cautious about purchasing following the反動 from stockpiling before last autumn's price increases. In addition, as spending on tourism and leisure became more active after COVID-19 was reclassified as a Category 5 infectious disease, the diversification of personal consumption reduced repeat purchases by existing customers and temporarily lowered sales.」
The反動 from stockpiling before the product price increases and the diversification of personal consumption actually caused repeat purchases by existing customers and sales to decline temporarily. - FY2024-Q1MaterialisedAnnual report
「Against this backdrop, our group experienced a temporary decline in sales and average spending per existing customer as consumer spending diversified, including a demand shock affecting stay-at-home demand during the pandemic and increased spending on tourism and leisure.」
The company states that the diversification of personal consumption actually led to lower average spending per existing customer and a temporary decline in sales. - FY2023RestatedAnnual report
「The group is susceptible to domestic economic conditions and trends in consumption and income. Prolonged weakness in consumption or increases in product procurement costs could affect the group's performance and financial condition.」
The company continues to recognize the risk that each business, including its high-priced product businesses, is affected by economic conditions and trends in consumption and income, as well as procurement costs. - FY2023-Q2WorsenedAnnual report
「Since July, the outlook has remained uncertain due to the impact of the seventh wave of COVID-19, surging global raw material costs, heightened international tensions and the rapid depreciation of the yen.」
Although the lifting of restrictions raised expectations for a recovery, the seventh wave, surging raw material costs, heightened international tensions and the rapid depreciation of the yen have contributed to continued uncertainty about the outlook. - FY2023-Q1Expectations for recovery coexist with worsening external factorsAnnual report
「During the cumulative first quarter ended, the easing impact of COVID-19 and normalization of socioeconomic activity raised expectations for an economic recovery. However, the outlook remained unpredictable due to concerns including a renewed spread of infections in China, inflation caused by surging raw material costs as the invasion of Ukraine continued, and concerns about yen depreciation.」
While pointing to the easing impact of COVID-19 and expectations for an economic recovery, the company cites a renewed spread of infections in China, the situation in Ukraine, surging raw material costs, inflation and concerns about yen depreciation, with uncertainty about the outlook persisting. - FY2022WorsenedAnnual report
「Economic activity showed temporary signs of recovery toward year-end as COVID-19 vaccinations progressed. However, the outlook remains uncertain as the emergence of the Omicron variant, the situation in Ukraine, surging global raw material prices and inflation created overlapping concerns.」
While recognizing a temporary recovery in economic activity, the company states that uncertainty in the consumer and economic environment has increased due to the Omicron variant, the situation in Ukraine, surging raw material prices and inflation. - FY2022-Q3Easing restrictions coexists with uncertainty from variantsAnnual report
「During the cumulative third quarter ended, restrictions on economic activity related to COVID-19 were gradually eased. However, the recovery in personal consumption remained uncertain due to the emergence of new variants and other factors.」
While recognizing the easing of restrictions on economic activity, the company states that the recovery in personal consumption remains uncertain due to the emergence of new variants. The assessment of risks related to consumer trends for high-priced products includes both improving factors and uncertainty. - FY2022-Q2RestatedAnnual report
「During the cumulative second quarter ended, Japan's economy showed some positive signs, including the wider rollout of COVID-19 vaccinations. However, the timing of containment remained unclear due to the spread of infections associated with COVID-19 variants, and uncertainty about the outlook continued.」
While recognizing positive signs from the rollout of vaccinations, the company states that the outlook remains uncertain due to the spread of variants and infections. - FY2022-Q1Uncertainty persists, with signs of recoveryAnnual report
「During the cumulative first quarter ended, Japan's economy showed signs of recovery in economic and production activity, and the spread of vaccinations offered some positive signs. However, the outlook remained uncertain, including because states of emergency and other measures continued to be declared.」
The company recognizes signs of recovery in economic and production activity and positive effects from vaccinations, while stating that the outlook remains uncertain due to states of emergency and other measures. - FY2021RestatedAnnual report
「The business environment surrounding our group remains uncertain, with no clear outlook, due to factors including deteriorating employment conditions caused by COVID-19 and declining consumer sentiment.」
The company continues to identify deteriorating employment conditions, declining consumer sentiment, and changes in lifestyles and purchasing behavior as risks in the business environment, including for high-priced products. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter ended, consumer sentiment deteriorated as COVID-19 spread. Although economic activity was gradually restored after the state of emergency was lifted, the economic outlook remained uncertain because concerns about a renewed spread of infections continued.」
The company continues to highlight deteriorating consumer sentiment due to COVID-19 and uncertainty about the economic outlook caused by a renewed spread of infections. - FY2021-Q1MaterialisedAnnual report
「During the cumulative first quarter ended, Japan's economy deteriorated as the spread of COVID-19 both domestically and overseas severely restricted social life and economic activity.」
The spread of COVID-19 actually caused economic activity and the consumer environment to deteriorate, and sales for the quarter fell 10.0% year on year. The impact of consumer trends, including those for high-priced products, was reflected in the results. - FY2020MaterialisedAnnual report
「However, from October 2019 onward, the economy remained under severe conditions, with uncertainty about the outlook increasing as consumer sentiment cooled following the consumption tax increase and social anxiety spread amid the expansion of COVID-19 infections from February 2020.」
The company states that the consumption tax increase and the spread of COVID-19 actually caused consumer sentiment to cool and the economic environment to deteriorate, bringing the risk associated with consumer trends for high-priced products to the fore. - FY2020-Q3WorsenedAnnual report
「During the cumulative third quarter ended, Japan's economy expanded gradually against a backdrop of solid corporate earnings and improving employment conditions. However, uncertainty about the outlook persisted as the prolonged US-China trade friction slowed the global economy and the consumption tax increase made consumer sentiment more cautious, requiring continued monitoring.」
While recognizing improved corporate earnings and employment conditions, the company notes that prolonged US-China trade friction, more cautious consumer sentiment due to the consumption tax increase and uncertainty about the outlook have increased risks in the consumer environment for high-priced products. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter ended, concerns about a downturn in the global economy, including the prolonged impact of US-China trade friction, led to signs of slowing earnings, particularly among export-oriented industries. Meanwhile, the general consumer goods market remained firm, supported by front-loaded demand ahead of the consumption tax increase.」
While pointing to US-China trade friction and concerns about a downturn in the global economy, the company describes the general consumer goods market as firm due to demand ahead of the consumption tax increase. Its previous risk assessment concerning the consumer environment for high-priced products remains unchanged. - FY2020-Q1WorsenedAnnual report
「During the cumulative first quarter ended, the environment surrounding our group remained uncertain, affected by intensifying US-China trade friction and the resulting conflict between the two countries. The business conditions index for large non-manufacturing companies turned negative for the first time in a year, while personal consumption was affected by the planned increase in the consumption tax rate to 10% in October.」
The company states that uncertainty about the outlook for personal consumption and the economic environment increased against a backdrop of intensifying US-China trade friction, the business conditions index turning negative and the planned increase in the consumption tax rate to 10%. - FY2019RestatedAnnual report
「However, amid signs of an economic slowdown caused by growing uncertainty surrounding US-China trade friction and the UK's withdrawal from the EU, personal consumption also continued to require close monitoring.」
While recognizing a recovery trend in the domestic economy, the company continues to cite US-China trade friction, the UK's withdrawal from the EU, the economic slowdown and uncertainty surrounding personal consumption as concerns for the sales environment for high-priced products. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter ended, the environment surrounding our group remained in line with a gradual economic recovery. However, the economic outlook remained uncertain, and personal consumption also continued to require close monitoring.」
While the economy is described as being on a gradual recovery track, the company continues to highlight uncertainty about the economic outlook and the need to monitor personal consumption. - FY2019-Q2RestatedAnnual report
「During the cumulative second quarter ended, the environment surrounding our group remained supported by a continued recovery in the domestic economy and a gradual recovery in personal consumption. However, the prolonged impact of natural disasters, including torrential rain in western Japan, typhoons and earthquakes, means that the outlook cannot be viewed optimistically.」
Although a recovery in personal consumption is indicated, the company states that the outlook cannot be viewed optimistically because of the prolonged effects of natural disasters, including torrential rain in western Japan, typhoons and earthquakes. - FY2019-Q1MitigatedAnnual report
「During the cumulative first quarter ended, the environment surrounding our group remained supported by continued improvement in employment and income conditions and a sustained recovery in personal consumption.」
The company notes improvement in employment and income conditions and a recovery in personal consumption, indicating that the consumer environment relevant to high-priced product sales is improving from its previous level. - FY2018-Q2RestatedAnnual report
「Personal consumption remained affected by consumers' preference for saving amid concerns about the future, including sluggish wage growth and higher social insurance premiums. However, consumer sentiment showed signs of recovery, with autumn merchandise selling well at department stores.」
Consumers' preference for saving is identified as a factor continuing to affect the sales environment for high-priced products, while a recovery in consumer sentiment is also noted. - FY2017RestatedAnnual report
「Because the products sold by our group are high-priced, they are affected by domestic economic conditions and trends in consumption and income.」
The company reiterated the risk that, because its products are high-priced, performance is affected by economic conditions and trends in consumption and income. - FY2017-Q3RestatedAnnual report
「During the cumulative third quarter ended, Japan's economy showed signs of a gradual overall recovery, supported by improving employment and income conditions and strong performance by export companies due to the weaker yen. However, consumers continued to favor saving. Meanwhile, the global economy remained uncertain due to China's slowing growth, the UK's withdrawal from the EU and the US presidential election in November.」
Although employment and income conditions improved, consumers continued to favor saving, while the global economy remained uncertain due to China's slowing growth and other factors. This reflects the company's view of the sales environment. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter ended, the Japanese economy was affected by the slowdown in the Chinese economy and the UK's withdrawal from the EU, with foreign exchange and stock markets remaining volatile. Although employment and income conditions improved, consumers continued to favor saving, and uncertainty about the economic outlook persisted.」
The slowdown in the Chinese economy, the UK's withdrawal from the EU, unstable foreign exchange and stock markets, and consumers' preference for saving are identified as factors continuing to affect the sales environment for high-priced products. - FY2017-Q1WorsenedAnnual report
「As the possibility of the United Kingdom leaving the EU emerged, personal consumption also weakened amid a substantial appreciation of the yen and a sluggish stock market, further intensifying downward pressure on prices.」
Regarding the existing risk that high-priced products are affected by personal consumption and income trends, the company cites yen appreciation, a sluggish stock market, weak personal consumption and increased downward pressure on prices. - FY2016First statedAnnual report
「Because the products sold by our group are high-priced, they are affected by domestic economic conditions and trends in consumption and income.」
The company identifies the risk that weak personal consumption caused by economic conditions, financial conditions and natural disasters, as well as higher procurement costs, could affect performance and financial condition because its products are high-priced.