Increased demand for infection prevention products and stay-at-home consumption, and performance differences by store location

「The drugstore business was affected by prolonged rain from the rainy season through September, including fronts and typhoons mainly in eastern Japan, causing summer seasonal products to underperform. Although inbound demand declined amid travel restrictions and other factors, revenue increased year on year, supported by the effects of renovations at existing stores and strong performance in the dispensing and e-commerce businesses. In the discount store business, although demand for stockpiled rice declined from the previous period, food products, particularly confectionery and other discretionary items, offset the impact, and revenue remained above the same period of the previous year.」

「The drugstore business was adversely affected by lower sales of seasonal merchandise, particularly cold medicines, partly reflecting the corresponding period two years earlier. This was offset by the effects of renovations at existing stores, continued strong performance in the dispensing and e-commerce businesses, and strong sales of stockpiled rice, among other factors, resulting in higher revenue than in the previous fiscal year.」

「Although record-high temperatures had a negative impact on summer seasonal products, sales exceeded the same period of the previous year as unit prices rose due to surging raw material prices, particularly for food, and the government began supplying stockpiled rice as planned from September.」

「Sales exceeded the previous fiscal year partly because inbound demand continued to recover gradually. In addition, the food division performed strongly because seasonal products remained firm throughout the year and market prices for food, particularly rice, continued to rise.」

「As for product trends, while the decline following demand for products related to COVID-19 prevention continued, inbound demand continued to recover, particularly for pharmaceuticals and cosmetics in busy districts.」

「In addition to the gradual recovery of inbound demand to approximately 60% of pre-COVID levels, existing-store sales remained firm, supported by recovering demand for cosmetics and cold medicines as opportunities to go out increased. In addition to continued strong sales of food and pet products, existing-store sales remained firm and revenue exceeded the year-earlier period, owing in part to the recovery in demand for cold medicines.」

「Inbound demand gradually recovered and cosmetics demand improved as the number of visitors to Japan increased following the easing of restrictions on activity, among other factors, and more people went out. However, the operating environment surrounding the company is becoming increasingly challenging due to declining demand for COVID-19 prevention products, competition among companies in opening stores, industry consolidation among major companies, and competition from other business formats.」

「While demand for COVID-19 prevention products declined, inbound demand showed signs of recovery as countries eased restrictions on activity, although the recovery was limited to some cosmetics and pharmaceuticals and remained in progress below pre-pandemic levels.」

「The drugstore business recorded sales of ¥451.521 billion, up 6.3% year on year, and operating profit of ¥23.665 billion, up 9.2%, resulting in higher sales and profit. The discount store business recorded sales of ¥288.511 billion, up 6.9% year on year, and operating profit of ¥13.787 billion, up 11.4%, also resulting in higher sales and profit.」

「Although cosmetics and other demand had recently grown as foreign tourists were again welcomed and domestic restrictions on activity were eased, stores near train stations remained in the process of recovery. In addition to proactive new store openings, sales exceeded the same period of the previous year due to increased demand for cold remedies and other factors. / In the discount store business, sales exceeded the same period of the previous year as demand ahead of alcohol price increases and demand for groceries, pet supplies and other products continued to perform strongly.」

「The drugstore business remained weak at stores in busy districts near train stations due to the continued impact of the disappearance of inbound demand and the decline in cosmetics demand during the pandemic. The discount store business continued to perform strongly in groceries, pet supplies and other categories.」

「At suburban stores, the impact of the decline following the stay-at-home demand surge from the year before last continued through May, while at stores near train stations, the disappearance of inbound demand and the decline in cosmetics demand during the pandemic continued.」

「The operating environment is becoming increasingly challenging due to the decline following demand for infection prevention products and groceries and daily necessities associated with stay-at-home consumption, the prolonged decline in cosmetics demand, competition with other companies in opening stores, and industry consolidation, including among major companies.」

「Declining demand for cold remedies and cosmetics due to heightened health awareness during the pandemic and the widespread routine wearing of masks」

「The drugstore business remained weak due to the effects of adverse weather, the temporary decline following the previous year's demand for infection prevention products and groceries and daily necessities associated with stay-at-home consumption, the continued disappearance of inbound demand at stores near train stations, and reduced foot traffic resulting from people refraining from going out and teleworking. On the other hand, sales exceeded the same period of the previous year as the decline in inbound demand and cosmetics demand, among other factors, had run their course, along with proactive store renovations including the introduction of fresh food.」

「The drugstore business remained weak at suburban stores due to the temporary decline following the previous year's demand for infection prevention products and groceries and daily necessities associated with stay-at-home consumption, while stores near train stations remained weak because inbound demand had disappeared and teleworking and reduced foot traffic continued, but … sales exceeded the same period of the previous year. / The discount store business was affected by a temporary decline following the previous year's demand for groceries and daily necessities associated with stay-at-home consumption, but sales exceeded the same period of the previous year due to increased sales of infection prevention products such as masks, efforts to strengthen grocery sales, and proactive store renovations.」

「Although suburban stores performed steadily due to increased demand for infection prevention products such as masks and disinfectant and for groceries and daily necessities associated with stay-at-home consumption following the spread of COVID-19, sales at stores near train stations fell below the previous fiscal year because inbound demand disappeared and cosmetics sales and customer traffic declined as a result of refraining from going out and lifestyle changes such as teleworking and working from home.」

「In the drugstore business, suburban stores performed steadily as the spread of COVID-19 increased demand for infection-prevention products such as masks and disinfectant, as well as for food, daily necessities and other products associated with stay-at-home consumption. However, sales fell below the year-earlier period at station-front stores, particularly those in urban entertainment districts, due to the loss of inbound demand, lower cosmetics sales resulting from telework and working from home, and fewer customers because of restrictions on going out. In the discount store business, as in the drugstore business, sales of food, fresh food and other products performed well as the spread of COVID-19 increased demand for infection-prevention products such as masks and disinfectant, as well as for stay-at-home consumption, and sales exceeded the year-earlier period.」

「Although the discount store business experienced a decline following the rush in demand before last year's consumption tax increase, as did the drugstore business, demand for infection prevention products such as masks and disinfectant and for groceries and daily necessities associated with stay-at-home consumption rose significantly following the spread of COVID-19, and sales exceeded the same period of the previous year, driven by strong performance, particularly at large stores selling fresh food.」

「Although suburban stores performed steadily due to increased demand for infection prevention products such as masks and disinfectant and for groceries and daily necessities associated with stay-at-home consumption following the spread of COVID-19, sales fell below the same period of the previous year because inbound demand disappeared as a result of entry restrictions, customer traffic at stores near train stations declined due to working from home, school closures and refraining from going out under the state of emergency, and business hours were shortened to prevent the spread of infection.」