COVID-19-related risks to stores, product procurement and demand
First written in FY2020. 8 of 15 entries say "Restated". Latest entry: FY2024-Q3.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2024-Q3RestatedAnnual report
「During the first three quarters of the current consolidated fiscal year, the Japanese economy saw the reopening of economic activity after the pandemic progress as COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law, while」
The company continues to describe COVID-19 as a change in the business environment, including the transition to Class 5 and the reopening of economic activity. - FY2024-Q2RestatedAnnual report
「With COVID-19 reclassified as a Class 5 disease under the Infectious Diseases Control Law, the reopening of economic activity after the pandemic has progressed, while」
The company continues to describe COVID-19 as a change in the business environment, including the transition to Class 5 and the reopening of economic activity. - FY2024-Q1ReframedAnnual report
「With COVID-19 reclassified as a Class 5 disease under the Infectious Diseases Control Law, the reopening of economic activity after the pandemic has progressed, while」
The company describes COVID-19 not only as a direct risk from the spread of infections, including store closures and procurement disruptions, but also as a change in the business environment that includes the reopening of economic activity following the transition to Class 5. - FY2023ReframedAnnual report
「The transition of COVID-19 to Class 5 under the Infectious Diseases Control Law could reduce revenue through lower demand for at-home dining as people have more opportunities to go out, and lower demand for infection-control products as restrictions are eased. However, given the expected increase in demand for products related to going out and leisure activities, the increase in visitors from within and outside the prefecture to the areas where we operate stores, the potential expansion of economic activity going forward, and our store-opening plans, we assume that we can secure revenue at a level similar to the previous fiscal year.」
The company presents COVID-19 as a change in the business environment, noting not only the risks of store closures, procurement disruptions and lower demand, but also lower demand for at-home dining and infection-control products following the transition to Class 5, alongside increased demand for products related to going out and leisure activities. - FY2023-Q3RestatedAnnual report
「There have been no material changes to the assumptions regarding the impact of the spread of COVID-19 described in the additional information to the annual securities report for the previous consolidated fiscal year.」
The company stated that there had been no material changes from the previous year in the assumptions used for accounting estimates concerning the impact of COVID-19. - FY2023-Q2RestatedAnnual report
「There have been no material changes to the assumptions regarding the impact of the spread of COVID-19 described in the additional information to the annual securities report for the previous consolidated fiscal year.」
The company stated that there had been no material changes from the previous year in the assumptions used for accounting estimates concerning the impact of COVID-19. - FY2023-Q1RestatedAnnual report
「There have been no material changes to the assumptions regarding the impact of the spread of COVID-19 described in the additional information to the annual securities report for the previous consolidated fiscal year.」
The company stated that there had been no material changes from the previous year in the assumptions used for accounting estimates concerning the impact of COVID-19. - FY2022WorsenedAnnual report
「Regarding the impact of COVID-19, we had assumed that the business environment would gradually return to pre-pandemic conditions by the end of the consolidated fiscal year. However, although vaccinations are progressing, the timing of containment remains uncertain and difficult to predict accurately due to the spread of new infections caused by variants and other factors」
The company states that the timing of containment of the pandemic cannot be predicted accurately and has changed its estimates to assume that the impact will continue through the first half of the following consolidated fiscal year. - FY2022-Q3Signs of recovery coexisting with concerns about renewed spread of infectionsAnnual report
「Following a decline in the number of infections from autumn onward, there were signs that the economy was beginning to recover after the state of emergency was fully lifted at the end of September 2021, but concerns have recently emerged about a renewed spread of infections caused by new variants」
The company describes signs of recovery resulting from the decline in infections and the lifting of the state of emergency, while also noting concerns about renewed spread caused by new variants. - FY2022-Q2RestatedAnnual report
「During the second quarter of the current consolidated fiscal year, economic activity remained sharply depressed and the outlook remained uncertain as the resurgence of COVID-19, including the emergence of highly transmissible variants, led to the continued implementation of states of emergency and priority preventive measures in several prefectures.」
The company continues to describe the renewed spread of COVID-19 caused by variants, the continued states of emergency and related measures, depressed economic activity, and uncertainty about the outlook. - FY2022-Q1WorsenedAnnual report
「During the first quarter of the current consolidated fiscal year, the Japanese economy was in an extremely difficult situation as economic activity contracted sharply due to the issuance of the third state of emergency and the application of priority preventive measures, while the impact of COVID-19 continued. Although wider access to vaccinations has led to progress toward the rollout of vaccines, early completion of vaccinations for the entire population is expected to be difficult, and concerns about a renewed spread of infections caused by variants remain. The outlook for the economy therefore remains unpredictable.」
The company cites the sharp contraction in economic activity caused by the third state of emergency and related measures, the difficulty of completing vaccinations early, and concerns about renewed spread caused by variants, and describes the outlook as unpredictable. - FY2021-Q3RestatedAnnual report
「The assumptions used in these accounting estimates have not changed materially from the additional information provided in the second-quarter report.」
The company states that the assumptions underlying its accounting estimates in light of the COVID-19 impact have not changed materially from the second-quarter report. - FY2021-Q2WorsenedAnnual report
「In light of the COVID-19 impact continuing longer than initially expected, we have made accounting estimates, including the recoverability of deferred tax assets, based on the assumption that the business environment will gradually return to pre-pandemic conditions by the end of the consolidated fiscal year.」
The company states that the impact of COVID-19 has continued longer than initially expected and has changed the assumption underlying its accounting estimates from recovery by the end of the second quarter to recovery by the end of the fiscal year. - FY2021-Q1RestatedAnnual report
「However, the outlook for infection trends and domestic and overseas economic conditions is difficult to assess, and the surrounding environment remains uncertain.」
The company continues to identify trends in COVID-19 infections and the outlook for domestic and international economic conditions as uncertain factors. - FY2020First statedAnnual report
「If a store employee in the Group becomes infected, we will respond in coordination with the relevant authorities. However, if stores are forced to close because the disinfection period is prolonged or sufficient staff cannot be secured for store operations, this could affect our business. In today's globalized economy, product sourcing networks extend around the world, but the spread of COVID-19 could disrupt operations at the production, processing and logistics stages, making it impossible to source products at the right time and in the required quantities. In addition, if the Japanese economy enters a recession and economic conditions deteriorate significantly as the infection spreads, consumers may become more inclined than ever to economize and seek low prices, leading to excessive price competition. A decline in customer traffic at stores near infected areas could also affect our operating performance and financial position.」
For COVID-19, the company has, for the first time, identified store closures due to employee infections, disruptions to the product sourcing network, stronger preferences for economy and low prices, and declining customer traffic at nearby stores as separate business risks.