Reinforcing the Management Base

「The transition to the new core system, originally scheduled for spring 2026, is expected to be postponed until summer 2026 or later to secure sufficient development and testing time and ensure stable operation.」

「As development of our digital infrastructure is now largely complete following the DX projects undertaken to date, we plan to bring the new core system fully online in spring 2026.」

「Although selling, general and administrative expenses increased slightly, by 0.9% year on year, due to higher store rents, cost efficiency relative to sales improved as a result of optimizing staffing and reviewing some outsourcing and promotional expenses.」

「For defensive DX, we progressed with the preparation of requirements definitions for renewing our core system. The objective was to build systems infrastructure that would improve operational efficiency, support accurate and rapid decision-making, and enable the continuous creation of high-value-added products and services in anticipation of business model transformation through DX.」

「We also began defining the requirements for renewing our core system, with the aim of building systems infrastructure that would improve management efficiency and enable the continuous creation of high-value-added products and services.」

「In promoting business standardization, we standardized and documented our customer service, one of the Company's strengths, with a particular focus on training methods. We also continued to develop our systems infrastructure, centered on the renewal of our core system, to optimize backend operations.」

「As part of operational standardization, the company visualized workflows at its stores and headquarters and optimized back-end operations, while developing its systems infrastructure centered on renewing the core system.」

「In addition, the company reviewed ways to rebuild its IT infrastructure, centered on the core system, including visualizing all workflows at its stores and headquarters and optimizing back-end operations to improve the effectiveness of its DX strategy.」

「In addition, the company reviewed ways to rebuild its IT infrastructure, centered on the core system, including visualizing all workflows at its stores and headquarters and optimizing back-end operations to improve the effectiveness of its DX strategy.」

「Specifically, to promote DX, the company will visualize all workflows at its stores and headquarters, optimize back-end operations, and secure and develop digital talent.」

「Specifically, while continuing to focus on low-cost operations, the company advanced initiatives supporting a return to growth while securing profitability, including forming a DX promotion team, rationalizing headquarters and stores, visualizing and standardizing operations, reviewing product development and production and logistics systems, and rebuilding its marketing strategy and CRM to increase LTV (lifetime customer value).」

「Specifically, while continuing to focus on thorough low-cost operations, the company advanced initiatives supporting a return to growth while securing profitability, including forming a DX promotion team, rationalizing headquarters and stores, visualizing and standardizing operations, reviewing product development and production and logistics systems, and rebuilding its marketing strategy and CRM to increase LTV (lifetime customer value).」

「To promote DX (digital transformation) with a customer-centric focus, the company will rebuild its CRM, visualize all workflows at its stores and headquarters, optimize back-end operations, and secure and develop digital talent.」

「In addition to lower store rents resulting from the continued withdrawal from unprofitable stores and reviews of contractual terms with developers, store-related costs declined substantially as depreciation decreased following impairment losses recognized for certain stores in the fiscal year ended August 2020.」

「Key initiatives included streamlining stores and head-office operations, strengthening product capabilities, reviewing the production system, improving operational efficiency through standardization, improving promotional efficiency, strengthening CRM, and rigorously implementing low-cost operations.」

「The company also began other headquarters reforms, pursuing initiatives to systematize and standardize operations alongside promoting telework and other measures, with the aim of improving productivity in each area. It also reduced headquarters costs by reviewing outsourced operations, mainly logistics, and improving the efficiency of headquarters divisions.」

「The company also began reforming headquarters. Alongside promoting telework and other measures, it pursued initiatives to systematize and standardize operations, aiming to further improve productivity in each area. In addition, it sought to reduce headquarters expenses by reviewing outsourced operations, mainly logistics, and improving the efficiency of headquarters administrative divisions, while improving free cash flow by generating stable profits from existing businesses.」

「Against this backdrop, as the group approached its 100th anniversary in 2020, it positioned the year as a milestone leading to the next 100 years and focused on strengthening its management foundation for sustainable growth.」

「To strengthen headquarters functions, the company promoted personnel exchanges and transfers between headquarters employees and sales staff and sought to reduce headquarters costs. It also worked to improve the productivity of headquarters personnel through continued promotion of operational standardization.」

「To strengthen headquarters functions, the company promoted personnel exchanges and transfers between headquarters employees and sales staff, sought to reduce headquarters costs, and promoted stronger internal controls and operational standardization from an overall optimization perspective.」

「To strengthen headquarters functions, the company promoted personnel exchanges and transfers between headquarters employees and sales staff and worked to reduce headquarters costs. It also developed headquarters personnel with an understanding of frontline operations and promoted operational standardization from an overall optimization perspective, seeking to improve the productivity of headquarters personnel.」

「To strengthen headquarters functions, the company promoted personnel exchanges and transfers between headquarters employees and sales staff, reducing headquarters costs. It also worked to develop headquarters personnel with an understanding of frontline operations and promote operational standardization from an overall optimization perspective.」

「The company promoted headquarters reform, including external support such as the active appointment of expert personnel and the use of consulting support as supplementary measures. However, this instead led to higher costs and lower headquarters productivity. In addition, it attempted structural reform by renewing its core system to address business areas that were diversifying and expanding as a result of technological advances and its growth strategy. However, a combination of factors, including a lack of company-wide IT literacy, forced a substantial postponement of the full operational launch. Even after full operation began in June, progress remained limited, as the company struggled to achieve stable operation.」

「In terms of profit, selling, general and administrative expenses increased substantially, by 7.8% year on year, due to higher web-focused promotional costs, additional investment in building the system following the postponement of operation of the new core system, higher external support costs aimed at early full operation, and increased personnel and other maintenance costs associated with store openings and expansions centered on “festaria bijou sophia Ginza.”」

「In addition to increased headquarters expenses caused by additional investment in building the system following the postponement of operation of the new core system and lower operating efficiency associated with recovery measures, increases in capital investment, fixed rent and other costs related to the opening of “festaria bijou sophia Ginza” also contributed to a substantial 9.8% year-on-year increase in selling, general and administrative expenses.」

「In addition to improving inventory efficiency, the company formed a project team to standardize operations from an overall optimization perspective and began identifying and reviewing inefficient work and unnecessary costs.」

「To strengthen the organizational structure supporting these initiatives, the company established a Marketing Strategy Office. By building an end-to-end system covering product development, manufacturing, promotion and sales, beginning with brand management based on its marketing strategy, it will improve the effectiveness of its marketing function.」

「In its overseas business, Taiwan-based retail subsidiary 台灣貞松股份有限公司 (Japanese name: 台湾貞松㈱) continued to develop its operating foundation by strengthening the group management structure, maintaining its position as a key base for the group’s Asia strategy.」

「As a result of strengthening the Group’s management structure as an SPA company, including a particular focus on quality control and process stabilization to improve manufacturing capabilities, products manufactured by the company accounted for 47.6% of sales at its parent company, Sadamatsu, contributing to improved competitiveness across the Group and lower product costs.」

「Specifically, the company invested actively in the use of recruitment services and in education and training. It also worked to establish a store structure supporting its growth strategy by thoroughly implementing its strengths in the sales process and further strengthening CRM.」

「Strengthen the management foundation by solidifying the base」