TOKYO — Some major Japanese retailers have slashed their sales and pro-fit outlooks for the year following the massive earthquake and tsunami of March 11 and the resulting nuclear reactor crisis.
Seven & i Holdings, the largest Japanese food retailer and parent of the 7-Eleven chain, said it was expecting its sales for the current fiscal year to fall 10.2%, to about $52 billion. Profits are expected to decline about 21.8% for the year.
“In addition to its direct impact on stores and products, there is a possibility that consumers' minds could change in accordance with the development of various possible eventualities,” the company said in a statement last month.
The company said its reduced forecast was made out of an abundance of caution, however, and executives were quoted as saying that overall they “don't expect the quake will cause a big impact on the economy.”
Seven & i said some of its stores in northeastern Japan were damaged. About 600 of its 7-Eleven locations in Japan were closed following the earthquake and tsunami, although many have since reopened. Also, the company said it closed 100 of its 170 York-Benimaru grocery stores.
The company said it would record a one-time charge of about $317 million for costs related to the disasters, according to a report in the Wall Street Journal.
Seven & I's largest rival, Aeon Co., said it expects a 33% decline in its net income for the current fiscal year.