Product Range Optimization and Seasonal Inventory Control

「In apparel, bargain sales remained firm as the company strengthened its offering of woven spring items and its response to summer sales. In general merchandise, sales of household goods and IP collaboration products drove revenue, although cooling and UV-protection products struggled amid the effects of bad weather and natural disasters.」

「秋の食卓にもなじみやすい落ち着いたカラーリングに、チップとデールのかわいらしさをプラスしました。」

「In apparel, the launch of early-summer items was later than usual, while sales of spring items such as lightweight outerwear were strong. After temperatures rose, sales of summer items such as cut-and-sew tops and trousers progressed steadily. In general merchandise, sales progressed steadily for products addressing demand for travel and mobile-related outings and for functional products offering ultraviolet protection and cooling effects. However, the rise in consumer thriftiness, including weaker consumer sentiment due to higher prices, prevented customer numbers from recovering sufficiently.」

「Going forward, the company will also work to improve the sell-through rate of full-price merchandise by eliminating imbalances in store inventories through the use of its logistics subsidiary.」

「After the start of the winter season, temperatures followed a typical winter pattern. In apparel, sales grew steadily, led by winter items such as outerwear and knitwear. During the sale period as well, the effects of procurement and inventory management significantly reduced disposal losses caused by excess inventory.」

「The company is advancing the strengthening of its governance structure for procurement and inventory management to secure stable sales.」

「The company is further pursuing business structural reforms to establish a stable two-pillar earnings structure comprising apparel and general merchandise, while advancing the strengthening of its governance structure for procurement and inventory management to secure stable sales.」

「The company is advancing the strengthening of its governance structure for procurement and inventory management to secure stable sales.」

「Against this backdrop, in the second year of the Group’s Medium-Term Management Plan (Business Restructuring Plan), we are further advancing business-structure reforms to establish two stable earnings pillars, apparel and general merchandise, while strengthening governance for procurement and inventory management to secure stable sales.」

「The company formulated a medium-term management plan aimed at an early recovery in performance and fundamental reform of its earnings structure. It has pursued business structural reforms to establish a two-pillar earnings structure by rebuilding a strong apparel business and expanding the well-performing general merchandise business, while advancing initiatives including the strengthening of its governance structure to optimize procurement and inventory.」

「The Group formulated a medium-term management plan aimed at an early recovery in performance and fundamental reform of its earnings structure. It has pursued business structural reforms to establish a two-pillar earnings structure by rebuilding a strong apparel business and expanding the well-performing general merchandise business, while advancing initiatives including the strengthening of its governance structure to optimize procurement and inventory.」

「The company has launched various initiatives, including business structural reforms to establish a two-pillar earnings structure through rebuilding a strong apparel business and expanding the well-performing general merchandise business, as well as strengthening its governance structure to optimize procurement and inventory.」

「In August, prolonged heavy rainfall and a tendency toward low temperatures affected sales. Weak sales of summer items subsequently led to inventory disposal, resulting in a significant decline in the gross profit margin.」

「In the apparel business in particular, the company advanced product merchandising to meet demand for at-home consumption. However, activity restrictions imposed under the declaration of a state of emergency during the spring holiday and Golden Week periods, which account for a large proportion of sales, prevented demand from recovering and made appropriate inventory control difficult.」

「The company is focusing on optimizing inventory control in order to correct the imbalance between supply and demand caused by the COVID-19 pandemic.」

「The medium-term management plan ending in the current fiscal year was withdrawn for the time being. At the same time, the Group as a whole pursued cost reductions and focused on optimizing inventory control in order to correct the imbalance between supply and demand.」

「In the apparel business, the company is working to optimize inventory control in order to correct the imbalance between supply and demand.」

「In addition to requests for people to refrain from going out as infections spread, commercial facilities across Japan successively closed temporarily after the declaration of a state of emergency. Accordingly, the Group as a whole thoroughly implemented cost reductions and appropriate inventory control, while also focusing on the use of public support measures.」

「Against this backdrop, the Group worked to strengthen the competitiveness of its core business in line with its medium-term management plan, which ends in the fiscal year ending February 2021, in order to achieve future growth across the Group. In the apparel business, it strengthened its focus on trend products and advanced flexible product supply in response to changes in the operating environment.」

「In the apparel business during the first six months of the fiscal year, performance temporarily struggled due to the prolonged rainy season and lack of sunshine in July. However, trend products, particularly dresses, and products meeting seasonal demand, such as lightweight outerwear, remained firm throughout the period. Sales also increased during the Golden Week period, which comprised 10 consecutive holidays, driven in part by a sale marking the imperial era change.」

「Against this backdrop, the Group worked to strengthen the competitiveness of its core businesses in line with the medium-term management plan, whose final fiscal year was the fiscal year ending February 2021, in order to achieve future growth across the Group. In the apparel business, this included strengthening initiatives focused on trend products and advancing flexible product supply in response to changes in temperature and climate.」

「As a result, the apparel business performed steadily throughout the year despite the effects of unfavourable weather, including extreme heat and a warm winter, as the company rigorously improved the precision of seasonal merchandising and maintained appropriate inventory control.」

「Under these circumstances, the Group formulated a medium-term management plan, with the current fiscal year as its first year, to achieve growth across the Group. In its apparel business, it pursued optimization of product assortments and inventory by improving the accuracy of seasonal merchandising, while in its general merchandise business it worked to further strengthen the competitiveness of its core businesses by reorganizing merchandising across each business format.」

「During the cumulative second-quarter period, sales of full-price and seasonal products in the apparel business failed to progress as planned due to unfavourable weather in early spring and prolonged extreme heat in summer, resulting in a decline in product freshness. The business also faced difficulties amid the additional impact of torrential rains in western Japan.」

「In apparel, we pursued optimization of the product assortment and inventory by improving the accuracy of seasonal merchandising. In general merchandise, we worked to further strengthen the competitiveness of our core businesses by reorganizing merchandising across each format.」

「As a result, the apparel business generally performed steadily as appropriate inventory control became established, although there were periods of difficulty due to the long rainy season and cool summer, as well as the record cold wave after the beginning of the year. Meanwhile, in the general merchandise business, product freshness improved in variety goods, and the Illusie 300 ¥300-uniform-price merchandise format performed well, resulting in steady performance for the general merchandise business overall. As a result, same-store sales for the company as a whole remained at the previous year's level, at 100.0% year on year.」

「During the cumulative third-quarter period, optimisation of product freshness through appropriate inventory control became established in the apparel business, resulting in stable progress despite temporary effects from climate change.」

「During the cumulative second-quarter period, improved precision in inventory control established consistent management of product freshness at stores in the apparel business, resulting in broadly stable progress despite some seasonal fluctuations. In the general merchandise business, product freshness improved significantly, particularly from the summer season onward, and sales performed well, including the emergence of hit products not seen the previous year. However, many regions experienced less favourable summer weather than the previous year, and sales of swimwear and yukata, the apparel business's key summer items, were weak. As a result, same-store sales for the company as a whole were limited to 99.8% year on year.」

「The effects of inventory optimisation initiatives in the general merchandise business that began in the previous fiscal year gradually started to emerge. As a result, same-store sales for the company as a whole remained broadly in line with the previous year at 99.9% year on year.」

「As a result, in the apparel business, product freshness at stores improved as product supply was optimised and inventory control became more appropriate, resulting in solid full-price sales across all seasons. In the general merchandise business, sales remained sluggish as industry conditions weakened overall, but efforts to reduce and appropriately manage inventory levels enabled the company to maintain and improve product freshness. As a result, same-store sales for the company as a whole were 103.9% year on year.」

「During the cumulative second-quarter period, optimisation of product supply and more appropriate inventory control in the apparel business improved product freshness at stores and helped maintain customer support throughout the period. Favourable weather during the summer season, following the spring holiday and Golden Week periods, and the boost from the extreme heat also contributed to strong sales across summer products, particularly seasonal items such as swimwear and yukata. As a result, same-store sales for the company as a whole were 104.1% year on year.」

「Across the apparel business, the company improved inventory turnover and product freshness at stores as a result of improved precision in assortment optimisation and seasonal inventory control, initiatives it had been pursuing intensively since the previous fiscal year. Relatively favourable weather during the spring holiday and Golden Week periods also contributed, and same-store sales for the company as a whole were 102.4% year on year.」