Can domestic same-store growth continue to be driven by higher average spend per customer?

Domestic segment sales were ¥273,164 million in FY2026, up 5.4% year on year, while sales to external customers were ¥272,073 million. Domestic same-store sales rose 4.6% from the previous fiscal year, confirming a recovery in existing stores that was not dependent on growth in sales across all stores. Average spend per customer also increased by more than 3% for the full year, suggesting that higher price points, as well as sales volume, contributed to sales growth.

In FY2027-Q1, consolidated sales were ¥105,483 million, up 8.0% year on year, while domestic segment sales were ¥77,953 million, up 7.2%. The company attributed the increase in sales to improvements in personal income and employment conditions, inbound demand, and strong sales of higher-priced sneakers, genuine-leather boots and sports apparel. However, the first-quarter disclosure currently available does not break down the respective contributions of customer traffic and average spend per customer, or the composition of domestic same-store sales.

In FY2027-H1, it will be necessary to determine whether the 7.2% increase in Q1 was a temporary effect of inbound demand and higher-priced products, or reflected a broad-based recovery in demand, including at regional stores. The key issues will be whether customer traffic remains positive year on year, whether average spend per customer continues to increase by around 3% or more, and whether sales at GRAND STAGE and large commercial facilities are lifting overall same-store sales. If only average spend per customer increases while customer traffic is flat or declining, the effects of passing higher prices on to customers will need to be assessed separately from growth in underlying demand.