Improving Tenant-Business Profitability by Closing Unprofitable Stores

「Existing stores performed steadily, making a significant contribution as we focused on improving customer appeal through product renewals, efforts to enter new categories and stronger promotional materials. As a result, both sales and earnings performed well compared with the same period of the previous year.」

「As a result, total revenue from the tenant business increased 3.3% year on year to ¥47,420 million. On the profit front, segment profit increased 34.6% year on year to ¥2,871 million, as strengthening coordination with the external sales business reduced opportunity losses.」

「As a result, total revenue from the tenant business increased 4.8% year on year to ¥45,883 million. On the profit front, although we were significantly affected by higher costs, including soaring raw material prices and labor expenses, measures such as responses under our product policies and a review of operating procedures contributed to segment profit increasing 12.8% year on year to ¥2,132 million.」

「As a result, total revenue from the tenant business increased 4.0% year on year to ¥22,470 million. On the profit front, although we reviewed store operations and worked to improve business processes, expenditures necessary to strengthen operating capabilities and competitiveness with a view to the future resulted in segment profit declining 9.4% year on year to ¥957 million.」

「As a result, total revenue from the tenant business increased 2.9% year on year to ¥10,884 million. On the profit front, in addition to new store openings and remodeling, we made strategically necessary expenditures to strengthen operating capabilities and competitiveness with a view to the future. As a result, segment profit declined 23.7% year on year to ¥350 million.」

「In terms of store expansion, we opened 12 new stores, including 5 Re’z deli comprehensive prepared-food stores and 5 eashion Western-style prepared-food stores, and remodeled 6 existing stores. While developing new merchandising initiatives, we focused on strengthening the business as a whole and increasing brand awareness by rolling these initiatives out across existing stores. We also closed 3 stores, bringing the number of stores at the end of the fiscal year to 284, an increase of 9 from the end of the previous fiscal year.」

「On the profit front, we made strategically necessary expenditures, including proactive sales initiatives, to strengthen our brand and product capabilities with a view to the future. In addition, increased initial costs associated with the 11 new stores opened during the cumulative third quarter period contributed to a 1.6% year-on-year decline in segment profit to ¥1,275 million.」

「As a result, tenant business revenue rose 2.0% from the previous fiscal year to ¥42,684 million. In terms of earnings, although the business was affected by soaring raw material and energy-related prices, efforts to review products and expenses, together with higher revenue, contributed to a 7.3% increase in segment profit from the previous fiscal year to ¥2,050 million.」

「In the tenant business, as a challenge aimed at accelerating new store openings, we developed a new format, "eashionBOWL," specializing in rice-based meals, the core product of the Western-style prepared-food store "eashion," and opened its first store at Kinshicho Termina 2 in Sumida-ku, Tokyo, in August. In addition, 3 general prepared-food stores were opened, increasing the store count by 4 from the end of the previous fiscal year to 275 at the end of the second quarter.」

「As a result, tenant business revenue rose 3.5% from the previous fiscal year to ¥41,827 million. In addition to higher revenue, segment profit benefited from the suppression of opportunity losses and waste-related losses through an appropriate operating plan, rising 19.1% from the previous fiscal year to ¥1,910 million.」

「In the tenant business, in addition to opening 2 Western-style prepared-food stores under the "eashion" brand, we pursued a new initiative to strengthen the business by opening 3 general prepared-food stores under the new "Re'z deli" brand, which offers value-oriented products tailored to the customer base, and 1 specialty fried-chicken store, "Torikara Goten," focused on the texture and flavor of its fried chicken. On the other hand, 13 stores, including temporary closures associated with format conversions, were closed, leaving 273 stores at the end of the second quarter.」

「On the other hand, a total of 12 stores were closed, including 11 temporary closures associated with format conversions. The store count at the end of the fiscal year was 280, up 9 from the end of the previous fiscal year.」

「As a result, tenant business revenue fell 4.7% from the same period of the previous year to ¥29,374 million. In terms of earnings, strengthening cooperation with external sales plants and expanding the range of items delivered improved morning product availability and enabled the company to respond effectively to the shift in the sales peak, contributing to improved gross profit and lower discount-related and waste-related losses. However, the decline in revenue was substantial, and segment profit fell 12.5% from the same period of the previous year to ¥924 million.」

「In terms of earnings, the company responded effectively to the shift in the sales peak to the morning, reducing discount-related losses, which contributed to an improvement in the gross profit margin and a reduction in waste-related losses. However, the decline in revenue was substantial, and segment profit fell 23.6% from the same period of the previous year to ¥617 million.」

「As a result, total tenant business revenue fell 11.6% from the same period of the previous year to ¥9,171 million. In terms of earnings, although the company worked to reduce losses and expenses by revising its operating plan, the impact of lower revenue was substantial, and segment profit fell 90.4% from the same period of the previous year to ¥32 million.」

「In the tenant business, in addition to opening 2 Western-style prepared-food stores and 2 general prepared-food stores, we opened 21 format-conversion stores converted from Apita and Piago into dual-branded Don Quijote and UNY stores, including MEGA Don Quijote UNY stores, for a total of 25 new stores. On the other hand, a total of 32 stores were closed, including 27 temporary closures associated with format conversions. The store count at the end of the fiscal year was 271, down 7 from the end of the previous fiscal year.」

「In the tenant business, in addition to opening 2 new Western-style prepared-food stores and 1 general prepared-food store, we opened stores in 11 locations converted from “APITA” and “PIAGO” to dual-branded stores such as “MEGA Don Quijote UNY,” resulting in 14 new store openings. Meanwhile, including 12 temporary closures associated with format conversions, we closed 14 stores in total, bringing the number of stores to 278 at the end of the second quarter.」

「In the tenant business, we held our original "50th Anniversary Sale" campaign, offering limited-edition products and developing sales floors according to the developer and store format, to revitalize sales floors at existing stores and strengthen sales capabilities. However, partly due to the impact of stores closed in the previous fiscal year and temporary closures associated with format conversions, total tenant business revenue remained sluggish at ¥10,386 million, compared with ¥10,519 million in the same period of the previous year. Segment profit was ¥335 million, compared with ¥205 million in the same period of the previous year.」

「On the other hand, a total of 17 stores were closed, including 10 temporary closures associated with renovations by developers and the company. The store count at the end of the fiscal year was 278, down 12 from the end of the previous fiscal year.」

「In the tenant business, 2 new stores were opened during the fiscal year while 6 stores were closed, reducing the store count by 4 from the end of the previous fiscal year to 286.」

「In the tenant business, we worked to strengthen existing stores by clarifying products targeted for enhanced sales through improved display methods and the use of promotional materials, and focusing on selling those products. However, overall revenue from the tenant business remained sluggish, partly due to the impact of stores closed in the previous fiscal year. As a result, tenant business revenue fell 0.6% from the same period of the previous year to ¥10,519 million, while segment profit fell 28.3% to ¥205 million.」

「In terms of store expansion, in addition to opening 4 general prepared-food stores, 1 specialty sushi store and 3 Western-style prepared-food stores, we opened our general prepared-food stores in 6 MEGA Don Quijote UNY stores converted from Apita and Piago in February and March 2018. We pursued expansion into new areas by appealing to consumers through the use of promotional materials unique to Don Quijote stores and adopting large-volume products, branded "Mega Mori," for families in our stores as well. On the other hand, we closed a total of 22 stores, including 8 temporary closures associated with changes of developers and renovations. As the store count at the end of the fiscal year was 290, down 8 from the end of the previous fiscal year, revenue declined, but earnings progressed steadily.」

「In terms of store expansion, 5 new stores were opened during the fiscal year while 14 stores were closed. Although total revenue from the tenant business declined, including the impact of stores closed in the previous fiscal year, earnings progressed steadily because the closures were primarily unprofitable stores.」

「In terms of store expansion, 2 new stores were opened while 11 stores were closed, reducing the store count by 9 to 289. Although total revenue from the tenant business declined, including the impact of stores closed in the previous fiscal year, earnings progressed steadily because the closures were primarily unprofitable stores.」

「In terms of earnings, results exceeded those of the previous year, mainly due to the effects of closing unprofitable stores.」