Daiei's pretax profit plunges 70.1%

Saturday 12th April, 02:11 AM JST

TOKYO —

Supermarket operator Daiei Inc on Friday reported a group operating profit of 14,442 million yen, down 70.1% year on year, and operating revenue of 1,196,011 million yen, down 6.8%. However, Daiei said it projects a group operating profit of 18 billion yen for the current business year to February 2009, up 24.6% from the previous year.

Meanwhile, Daiei estimates group operating revenue at 1.05 trillion yen, down 12.2%, due to a slump in consumption.

Daiei’s same-store sales decreased for the fourth consecutive year due mainly to slack sales of clothing amid slumping consumption.

The earnings slump also reflected closures of some outlets and intensifying competition with rival retailers, Daiei officials said.

Another blow came from the sluggish performance of affiliate OMC Card Inc. OMC Card fell into the red in the year to February with a group net loss of 22,538 million yen as the company set aside 47.1 billion yen of reserves for future reimbursements of overpaid interest.

JCN

2 Comments

thepossum at 06:59 PM JST - 12th April

Slump in consumption ?

Again, anyone thats read any of my posts on this topic knows that I have little sympathy for any of Japan's major supermarket chains. They have only themselves to blame as they continue to limit access to their markets through various barriers and shady distribution networks. The same systems that have resulted in outrageously high consumer goods products for decades. Now that the good times are over and the consumers are pretty much penny pinched to the bone... they whine about losing profits ! Boo hoo hoo ! Fact... the yen is at an even 1-1 with the US dollar right now. All Japanese markets should be taking the opportunity to draw customers into their stores by offering low priced American products. We should be seeing cereals, chips, fruit and vegetables, pork, bacons, frozen foods, shampoos, toothpastes, mustards, beers... just flooding into this market. But what do we get ? A promise that they will sell oranges, grapefruits, and Franzia (?) wine for a few days ! What a freakin' joke ! I hope they all go gunny bag so the likes of Costco and walmart can swoop in and give the customers here a freakin' break. Soooo, cry all you want Daiei... you made this sloppy bed, you sleep in it !
some14some at 07:40 PM JST - 12th April

Market forces had identifed Daiei as 'terminally ill patient' long ago, however, Govt/LDP (indirect shareholders) will continue aggressive treatment in the hope of an unexpected success....!