Adapting business formats, stores, products and services to market and competitive conditions

「To improve operating efficiency, we will shift from a structure in which our group owns the entire supply chain to one in which certain business areas involving earnings volatility risk, such as fishing and seafood processing, are exited or significantly scaled back and supplemented through partnerships with external partners.」

「Because we plan to select locations for these new formats mainly from second-generation properties that can be reused, we will refine them into stores requiring low investment and delivering high investment efficiency.」

「As these new-format stores are to be selected and opened mainly in existing premises that can be reused with their fixtures and fittings, we will develop them as low-investment, highly efficient stores.」

「These stores are new business formats that make maximum use of the group companies’ supply chain, including fresh fish landed that morning by the SANKO fleet and delivered directly from the vessels, comprehensive food products supplied by a major wholesaler in Toyosu, and products supplied by SANKO Kaisho, a fishery wholesaler in Hamamatsu.」

「Going forward, to create group synergies through the integrated operation of our fisheries and food-service businesses, we will promote initiatives in fisheries, product development aimed at maximizing marine resources, and the opening of stores under fresh-fish-related formats, including “アカマル屋鮮魚店” and “サカナタベタイ,” which will provide a stable earnings base for the group as a whole, thereby pursuing steady business growth.」

「Going forward, to create group synergies through the integrated operation of our fisheries and food-service businesses, we will promote initiatives in fisheries, product development aimed at maximizing marine resources, and the opening of stores under fresh-fish-related formats, including “アカマル屋鮮魚店” and “サカナタベタイ,” which will provide a stable earnings base for the group as a whole, thereby pursuing steady business growth.」

「Due to the effects of the entrenchment of remote work and calls for people to refrain from going out, customer spending is gradually dispersing from the concentration in urban areas to suburban locations, and we expect this trend to continue. We have established and opened stores under the suburban “アカマル屋” casual pub format, which serves residential areas.」

「Due to the effects of the entrenchment of remote work and calls for people to refrain from going out, customer spending is gradually dispersing from the concentration in urban areas to suburban locations, and this trend is expected to continue. “アカマル屋” and “焼肉万里” are small and medium-sized stores located in suburban areas and have continued to receive a certain level of customer support even during the COVID-19 pandemic.」

「Due to the effects of the entrenchment of remote work and calls for people to refrain from going out, customer spending is gradually dispersing from the concentration in urban areas to suburban locations, and this trend is expected to continue. “アカマル屋” and “焼肉万里” are small and medium-sized stores located in suburban areas and have continued to receive a certain level of customer support even during the COVID-19 pandemic. In particular, “アカマル屋” is a low-investment, high-efficiency brand. We will continue to refine the brand and open stores after carefully assessing the market areas and site conditions.」

「Against this backdrop, we recognized that the significant changes in customers’ values, behavior and needs represented a period of transition and viewed it as an excellent opportunity for bold transformation. We recognized that “achieving a qualitative transformation of the business” and “taking bold steps to consolidate and reorganize existing stores” were our most important issues, and undertook the following measures.」

「Our medium-term management strategy is to close large stores and stores on upper floors or in basements early, operate stores with an eye to the “With-Corona era,” and develop new businesses.」

「However, we view this situation as a period of transition in which customer behavior and needs are changing significantly, and rather as an opportunity for major transformation. We recognized that “achieving a qualitative transformation of the business” and “taking bold steps to consolidate and reorganize existing stores” were our most important issues, and undertook the following measures.」

「Against this backdrop, from the perspective of customers whose needs have changed significantly, we recognized that “achieving a qualitative transformation of the business” and “taking bold steps to consolidate and reorganize existing stores” were our most important issues, and undertook the following measures.」

「As in the previous fiscal year, we recognized that, from the perspective of customers whose needs have changed significantly, “achieving a qualitative transformation of the business” and “taking bold steps to consolidate and reorganize existing stores” were our most important issues, and undertook the following measures.」

「In the same month, we changed 1 “月の雫” store to “東方見聞録,” which was suited to the current location and market characteristics. After the change, customer numbers have performed steadily, increasing by 25%.」

「③ As a result of introducing a brand-based organizational structure, the business unit system, from the current fiscal year, we have become able to implement operating measures suited to changes in the external environment more swiftly, as described below.」

「We recognize that accurately and swiftly transforming the business qualitatively as an organization in response to rapidly changing market and competitive conditions is an issue. We will drive transformation under the following 5 policies.」

「For existing stores, we changed the business formats of and opened 4 stores under “金の蔵” and “アカマル屋,” which have stable earnings and strong growth potential, respectively, to adapt to market changes and improve the profitability of individual stores.」

「As part of our business structure reforms, we continued to consolidate and reorganize existing brands through the reorganization of business formats and stores, as in the previous fiscal year.」

「We recognize that it is an essential and urgent issue to evolve our industries and business formats qualitatively and structurally with an eye to “what comes next,” without being constrained by our previous understanding of the business or established methods, and to change familiar ways of working and conducting business.」

「ゑびや, which opened in Omiya in August 2016 as a new business format, has been well received by customers and is performing steadily. To test the format's fit with a new market, we opened a store in Ikebukuro in January of this year. We also launched the yakitori restaurant ゴールデン金の蔵 to meet the needs of the generation that previously visited 金の蔵.」

「We changed the business formats of 3 stores to respond to customer needs.」

「As customer preferences have shifted toward distinctive and specialized formats, we have sought to adapt to changes in the market and competitive environment by developing アカマル屋, an authentic, mass-market pub centered on yakitori and grilled pork skewers. We also launched ゑびや, a soba pub where customers can casually enjoy drinks with soba.」

「We believe it is important to adapt our business formats, stores, products and services to changes in market and competitive conditions.」