Aeon Logs Record Net Loss of 53.9 B. Yen in March-May
Tokyo, July 9 (Jiji Press)--Aeon Co. <8267> logged a consolidated net loss of 53,973 million yen in March-May, the largest loss since the Japanese retail giant began releasing quarterly net balance information in the fiscal year to February 2005.
The company was in the red in its first-quarter net balance for the second straight year, according to its earnings report released on Wednesday.
The massive red ink reflected the impact of the COVID-19 epidemic on Aeon’s mainstay general merchandise retail business. Aeon shopping malls’ temporary closures amid the virus crisis also weighed on the retail group’s earnings.
People’s efforts to stay home to avoid infections that started to spread in March led to plunges in sales of all goods excluding food items at Aeon’s general merchandise outlets, and the drops accelerated after the Japanese government’s declaration of a state of emergency over the new coronavirus in April.
The retail group’s real estate development business for shopping malls and other commercial facilities also struggled as the pandemic caused temporary closures of half of its Chinese facilities in February and all of its domestic facilities in April, leading to a large cut in income of rents from tenants.
[Copyright The Jiji Press, Ltd.]