Stagnant consumer spending

Japan’s Komeri posts 2.3 per cent dip in nin-month operating revenues

(Source: Screenshot/Komeri)

Japanese home improvement retail chain Komeri posted a 2.3 per cent dip in accumulated operating revenues in nine months ending December 31, 2023. The company’s financial statement, a copy of which was furnished the Tokyo Stock Exchange, showed that Komeri, which operates store chains under the Home Center, Hard & Green, Pro, Power, and Athena marques, recorded operating revenues of 290.064 bn Japanese yen (JPY, EUR 1.78 bn) for the period.

The company attributed the weak showing to stagnant consumer spending, soaring energy and raw material prices stemming from the conflict in Ukraine, unpredictable weather that affected sales of seasonal products, and the prolonged depreciation of the Japanese yen. It also observed that the business environment “continues to be difficult”.

A breakdown by category shows that the biggest sales contributor was gardening, agriculture and pet supplies at 30.7 per cent, or JPY 91.14 bn, followed by daily necessities, home appliances, and car/leisure goods, which made up 19.4. per cent, or JPY 57.603 bn. Tools, hardware and work supplies accounted for JPY 53.018 bn or 17.9 per cent, while renovation materials and exterior supplies yielded JPY 45.082 bn, or 15.2 per cent of the total.

The company expects to break even by end-March 2024, when its fiscal year closes with operating revenues of JPY 379.5 bn (EUR 2.3 bn). Komeri said that as of end-December 2023, it had 1 218 stores in total across its brands.

Komeri, which sells tools, hardware, building materials, agricultural implements, green merchandise, and gardening and farming materials, was founded in 1952 as Komeri Showten Co. Ltd. The company changed its name to Komeri Co. Ltd in January 1973. It is headquartered in Niigata. Apart from its Japan operations, Komeri also has two stores in Thailand.

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