Life Corporation, the Osaka- and Tokyo-based supermarket operator, booked higher sales and lower profit in the three months to the end of May 2026, a combination that traces directly back to what it is paying its staff.
Consolidated operating revenue rose 3.2% year-on-year to ¥223.3bn, and same-store sales at its core supermarket business grew 2.9%. Operating profit fell 6.9% to ¥7.23bn, and net profit attributable to shareholders dropped 9.0% to ¥5.08bn.
| Metric | Value | YoY change |
|---|---|---|
| Operating revenue | ¥223.3bn | +3.2% |
| Operating profit | ¥7.23bn | -6.9% |
| Net profit | ¥5.08bn | -9.0% |
| Personnel expenses | ¥34.35bn | +5.1% |
| Same-store sales (supermarket) | - | +2.9% |
The company points to personnel costs as the main drag. Consolidated personnel expenses rose 5.1% to ¥34.35bn, lifting labor costs to 16.0% of sales from 15.7% a year earlier. Life Corporation says this is the third consecutive year it has raised wages by more than 5%, and from March 2026 it extended annual paid holidays for all employees from 117 to 120 days, a level it describes as the top tier among Japanese supermarket chains. Property costs tied to new store openings added further pressure, and total selling, general and administrative expenses climbed to ¥67.7bn, or 31.5% of sales.
Management says productivity gains from its ongoing efficiency drive were not enough to offset the wage and rent increases this quarter. The company left its full-year outlook unchanged, still targeting operating revenue of ¥922.5bn and operating profit of ¥27.0bn for the year to February 2027. That forecast implies profit needs to recover pace through the rest of the year even as the same cost pressures persist, since Life Corporation has not signaled any change to its wage or holiday commitments.