Economic, Competition, Customer Preference and Weather Risks

「中東情勢の緊迫化による原材料価格やエネルギー価格の高止まりに加え、物価上昇による消費者の節約志向も継続しており、景気の先行きは不透明な状況が続いております。」

「During the fiscal year ending 31 March 2026 (1 April 2025 to 31 March 2026), the Japanese economy continued to show a gradual recovery trend due to improvements in employment and income conditions. However, the outlook remained uncertain because of the impact of continued price increases on personal consumption and the effects of unstable international conditions.」

「The outlook remained uncertain due to heightened downside risks to the economy resulting from continued price increases and the impact of U.S. tariff policy.」

「During the six-month period ended 30 September 2024 (1 April 2024 to 30 September 2024), the Japanese economy continued to recover gradually, supported by the normalization of social and economic activity, improvements in employment and income conditions, and increased inbound demand. However, the outlook remained uncertain due to soaring energy and resource prices amid unstable international conditions and rising prices driven by higher labor and logistics costs.」

「During the fiscal year ended 31 March 2024 (1 April 2023 to 31 March 2024), the Japanese economy moved toward normalization of economic activity as COVID-19 was reclassified as Category V under the Infectious Diseases Act, and the economy showed a gradual recovery trend. However, the outlook remained uncertain due to higher domestic prices resulting from soaring raw material and energy prices and the depreciation of the yen.」

「Against this backdrop, the Group has worked to improve customer satisfaction by providing products and services that address rapidly changing social conditions and increasingly diverse customer needs, based on its fundamental policy of delivering fulfilling lifestyles to customers.」

「During the six-month period ended 30 September 2023 (1 April 2023 to 30 September 2023), the Japanese economy showed a gradual recovery as the classification of COVID-19 under the Infectious Diseases Act was changed to Category V and economic activity moved toward normalization. However, the outlook remained uncertain due to rising prices, particularly for energy resources, resulting from tense overseas conditions and foreign exchange movements.」

「During the three-month period ended 30 June 2023 (1 April 2023 to 30 June 2023), the Japanese economy continued to face uncertainty. Although the economy began to recover gradually following the lifting of restrictions on activity related to COVID-19, it remained affected by the prolonged situation in Ukraine, the depreciation of the yen and rising prices.」

「During the nine-month period ended 31 December 2022 (1 April 2022 to 31 December 2022), the Japanese economy gradually moved toward normalization as restrictions on activity related to COVID-19 were eased in stages. However, the outlook remained uncertain, as the economy was affected by rising prices driven by the rapid depreciation of the yen and soaring global raw material prices, further heightening consumers’ focus on protecting their household finances.」

「The outlook remains extremely uncertain due to soaring resource and crude oil prices resulting from Russia's invasion of Ukraine and rising prices associated with the yen's sharp depreciation.」

「During the three-month period of the fiscal year from 1 April 2022 to 30 June 2022, Japan's economy gradually moved toward normalization of economic activity as efforts to prevent the spread of COVID-19 and vaccinations progressed, but the outlook remained uncertain as raw material prices and general prices rose due to the weaker yen and the situation in Ukraine.」

「During the three-month consolidated accounting period from 1 April 2021 to 30 June 2021, Japan's economy was in a difficult situation, with personal consumption and employment conditions remaining sluggish due to restrictions on economic activity accompanying the spread of COVID-19.」

「However, following a renewed increase in concerns about COVID-19 in late November after a temporary lull, activity stagnated amid the review of the Go To campaign and further requests for shortened operating hours at food service establishments. Demand for banquets, including year-end parties, virtually disappeared, resulting in a significant loss for the food service business. In January, a new state of emergency was declared for Tokyo and 3 surrounding prefectures, and the covered area was expanded to 11 prefectures, leaving the outlook extremely uncertain.」

「During the three-month period of the fiscal year, Japan's economy was in a difficult situation, as the spread of COVID-19 and the government's requests for people to refrain from going out, together with the declaration of a state of emergency on 7 April, restricted economic activity.」

「Although consumer sentiment in the liquor retailing and food service industries is gradually recovering, the challenging business environment continues amid deeply entrenched consumer frugality, rising labor costs due to labor shortages, and persistently high raw material and energy prices.」

「During the three-month period of the fiscal year, Japan's domestic economy remained on a gradual recovery trend, but personal consumption continued to face an uncertain outlook due to uncertainty surrounding political and economic developments overseas. A consumption tax rate increase was also scheduled for this autumn, creating an environment in which customers would become even more selective.」

「The liquor and food distribution and food service industries continue to face a challenging business environment, with consumers maintaining a strong focus on protecting household finances and saving, labor shortages and the resulting increases in labor and logistics costs, and intensifying competition across sectors and business formats.」

「During the nine-month period of the fiscal year, Japan's domestic economy remained on a gradual recovery trend, but uncertainty continued amid the overlapping effects of disasters including the northern Osaka earthquake, typhoon damage in the Tokai region and the Hokkaido Eastern Iburi earthquake.」

「The liquor and food distribution and food service industries continue to face a challenging business environment, with consumers maintaining a strong focus on protecting household finances and saving, labor shortages and the resulting increases in labor and logistics costs, and intensifying competition across sectors and business formats.」

「During the nine-month period of the fiscal year, Japan's domestic economy remained on a gradual recovery trend, partly due to the effects of government economic measures, although the emergence of geopolitical risks overseas had an impact. The environment surrounding the retail and food service industries was heavily affected by adverse weather in summer and October, while personal consumption remained uncertain and customers continued to be highly selective.」

「During the six-month period of the fiscal year, Japan's domestic economic environment surrounding the retail and food service industries maintained a gradual recovery trend, including an improvement in employment conditions due to the effects of government economic measures, although geopolitical risks overseas became apparent. In addition, adverse weather from July through August contributed to continued uncertainty about the outlook, while consumers continued to show a preference for selective purchasing and to prioritize improving their quality of life.」

「In the liquor retailing industry, competition across different sectors and business formats is becoming increasingly intense, while changes in customer preferences and a stronger focus on saving and low prices have become evident, and the business environment remains challenging. In the food service industry, customer preferences are diversifying across various aspects of daily life, while competition to attract customers, including from other industries, continues to intensify, and the challenging business environment persists.」

「Competition in the liquor retailing industry across different sectors and business formats is becoming increasingly intense, while changes in customer preferences and a stronger focus on saving and low prices have become evident. Combined with the effects of adverse weather in the first half, the industry as a whole remained sluggish during the nine-month period of the fiscal year, and the business environment surrounding the liquor retailing business remains challenging.」

「Personal consumption has remained sluggish since the beginning of the year, and demand for discretionary goods has again declined noticeably, making the business environment surrounding the liquor retailing business increasingly challenging.」

「While competition in the liquor retailing industry across different sectors and business formats is becoming increasingly intense, the industry as a whole appears to have remained sluggish this quarter, also affected by changes in customer preferences and unstable weather, particularly in western Japan.」

「The Group's businesses are affected by economic conditions, the activities of competitors, changes in customer preferences and weather-related factors. Accordingly, unexpected economic fluctuations, competitor activity, changes in customer preferences and adverse weather conditions may affect the Group's operating results and financial condition in the course of future business activities.」