Ekiten Research Institute, a research and development division for small and medium-sized businesses operated by Design One Japan Co., Ltd. (President and CEO: Yasuo Takabatake, TSE First Section 6048), recently conducted a "Survey on Business Conditions During the COVID-19 Pandemic" targeting store personnel nationwide. We are pleased to report the results.

67.6% of stores responded that they have already been affected. This shows that even small and medium-sized businesses are being affected by COVID-19. While many stores are struggling with a decline in sales, some have also seen an increase in sales.

This survey surveyed store managers across the country and across all genres to find out how the COVID-19 pandemic has affected their business and what efforts they are making to maintain store operations.

■ Survey outline
Survey name: Survey on business conditions during the COVID-19 pandemic
Target audience: Store managers and sales promotion staff nationwide who are listed on the store review and ranking site "Ekiten"
Answers: 3,381
Survey period: April 24, 2020 to May 31, 2020
Survey method: Internet survey
Research organization: Ekiten Research Institute (Design One Japan Co., Ltd.)

■ Survey results
[Compared to April to July of the previous year, how much has your sales been affected?]

Many stores have voluntarily refrained from business due to requests to close due to the COVID-19 pandemic, but when asked if their sales have been affected compared to April to July of the previous year, 77.6% of stores responded that "sales have decreased." 14.3% of stores responded that "sales have remained the same," and 8.1% responded that "sales have increased." Among stores that responded that their sales have decreased, the largest number responded that "sales have decreased by 21-30%."

On the other hand, when asked how much sales had increased, about 30% of stores answered "11-20% increase." Looking at the details of stores that answered "81-90% increase," it appears that businesses such as "handyman" and "pet shops" have been affected by disinfection work during the COVID-19 pandemic and increased demand for pets due to people staying at home.

[By genre/region: Compared to April to July of the previous year, how much has your sales been affected?]

When analyzing the stores that responded "Sales have decreased/no longer existed" and those that responded "Sales have increased/remained the same" by category, over 90% of stores in the "Outing/Leisure" category (hotels, tourist spots, etc.) and the "Gourmet" category (restaurants, etc.) responded "Sales have decreased/no longer existed." This shows that they have been severely affected by COVID-19.

On the other hand, the "Pets/Animals" category, which includes pet shops and grooming salons, had a small sample size of responding stores, but it was the only category out of the 14 where the number of stores that responded that "sales have increased/remained the same" exceeded the number of stores that responded that "sales have decreased/no longer have sales."

When analyzed by region, in the Kanto and Kinki regions, including Tokyo and Osaka, where requests to shorten business hours have been prolonged, approximately 8% of stores responded that their sales have decreased or that they have no sales.

[Please tell us the specific impact of COVID-19 on your business]

In the question above, 77.6% of stores responded that their sales had decreased or that they had no sales, indicating that they have been seriously affected.
In addition, about half of the stores responded that the financial burden of infection control measures has increased, and it appears that expenses that would not be incurred under normal store operations, such as wearing masks, providing disinfectant, and ventilating the store with air conditioning on in the summer, are increasing.

[What measures have you taken to maintain business operations since the impact of COVID-19 began to be felt?]

The survey found that measures taken to stay in business include cash flow measures such as "using subsidies and compensation systems from the government and financial institutions," and measures to attract customers such as "actively promoting the measures being taken to prevent the spread of infection." As the majority of stores responded to the previous question that "the financial burden of infection control measures has increased," it is clear that many business owners are trying to stay in business by taking infection control measures and creating an environment where customers can visit with peace of mind, even if it means a slight increase in their burden.

[What measures are you considering to increase sales and customer numbers amid the COVID-19 situation?]

After the state of emergency was declared, many stores were forced to close, but even after reopening, some stores have not seen a recovery in customer numbers. To stay in business, they need customers to visit their stores, and many stores are taking measures to increase customer numbers online, such as "updating information on their website" and "disseminating information on social media."

If the current situation continues, how long do you expect to be able to continue business?

Even now, the number of infected people has not decreased significantly, restrictions on events remain in place, and people are still discouraging travel between prefectures, meaning consumer activity has not returned to pre-COVID levels. When asked how long businesses can maintain their operations if the current situation continues, 58.1% of stores responded that they expect to be able to continue for at least a year. Efforts such as utilizing subsidies and compensation systems from the government and financial institutions to improve cash flow, and creating an environment where customers can visit stores with peace of mind while taking infection prevention measures, appear to be proving to be somewhat effective. Meanwhile, 41.9% of stores responded that it will be difficult to continue operations for more than a year if the current situation continues.
More than six months have passed since the COVID-19 pandemic began, and people's consumption patterns have changed dramatically. To improve the business environment for small and medium-sized businesses, further support and efforts are needed to help them adapt to new consumption and lifestyles.

*The composition ratios in the graphs are rounded to the second decimal place, so the total may not necessarily add up to 100.
*When publishing the contents and graphs of this survey in print, on video, on a website, etc., please clearly state that it was conducted by Ekiten Research Institute.

[Contact for media inquiries regarding this matter]
Design One Japan Co., Ltd. Service Public Relations Officer
TEL:03-6908-7820 FAX:03-6421-7463 Mail:pr@designone.jp　

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