The government has unveiled its plan to extend the emergency declaration. Curbing economic activity for a longer period could further hurt the business performance of Japanese companies.
Isetan Mitsukoshi Holdings Ltd. announced on Friday that it will extend the closure of some of its stores, including its Nagoya Sakae Mitsukoshi Store in Nagoya. The company initially planned to keep these stores closed till May 6, the end of Golden Week holiday period.
As for stores in the Tokyo metropolitan area, including Isetan's main store in Shinjuku and Mitsukoshi's main store in Nihonbashi, both in central Tokyo, the company plan to resume operations at a time when the declaration is lifted. These stores are expected to remain closed for the time being.
Sogo & Seibu Co., another department store operator, will also continue to suspend operations.
Royal Holdings Co., which operates the Royal Host restaurant chain, is suspending eat-in service during the Golden Week holiday period and plans to reopen their restaurants on Thursday for shorter business hours.
Many restaurants are small businesses, and long-term closures are a matter of life and death. A restaurant owner in Tokyo said: "Even if sales are zero, rent and salary must be paid. My business could go bankrupt if it takes longer."
Some manufacturers, which have been closed for business, plan to resume operations by having their employees work at home.
Toshiba Corp., which has suspended operations since April 20, except for maintenance and inspection work, plans to resume operations by telecommuting in principle from Thursday. Canon Inc. plans to hold talks with its labor union over whether to take extra time off on Thursday and Friday, after Golden Week ends.
Automakers will continue to suspend or reduce production even after the holiday period. Mitsubishi Motors Corp. will close its main plants in Japan on May 12 through 15. Nissan Motor Co. will continue production cuts at its three domestic plants until as late as May 29, while its subsidiary in Fukuoka Prefecture will suspend production for three days.
Requests by local governments to refrain from some activities in response to the emergency declarations cast a shadow over corporate performance.
Three major department store operators announced on Friday that April sales fell by 70%-90% from a year earlier. Duty-free sales to foreign visitors to Japan, which have supported department store sales, was only about 1% of the previous year's level at each operator.
Automobile sales, which were affected by voluntary restrictions on outings, also fell. Domestic sales of new cars in April were 270,393 units, down 28.6% from a year earlier, an industry organization announced on Friday. It was the second lowest figure for April since comparable data became available in 1968.
According to a survey by Tokyo Shoko Research Ltd., 359 companies had revised their business results downward by April 29 due to the spread of the new coronavirus infections.
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