The Ginza Mitsukoshi department store. Shutterstock.
The owner of Japanese department store chains Mitsukoshi and Isetan posted a net loss of 41.8 billion yen (around $382 million) for its fiscal year ending March 31.
This marks the company’s second straight year of losses, following a loss of 11.19 billion yen ($102.4 million) the previous year. Meanwhile, net sales were down 27.1 percent and operating loss hit 20.98 billion yen ($191.9 million).
The group expects that while net sales will drop a further 45.2 percent during the current financial year, it will generate a profit of 1 billion yen ($9.1 million).
But its problems are far from over. To curb an uptick in Covid-19 infections, Japanese prefectures including Tokyo, Osaka, Hokkaido, and Hiroshima have been placed under a state of emergency that has been extended until May 31. Large retail operations already suffering from the pandemic’s fallout have been asked to close, in order to discourage citizens from leaving their homes and many department stores are only keeping food and cosmetics sections open.