Efficiency Gains and Stronger Sales Capabilities through Integration of Distribution Businesses

「During the fiscal year, 10 new mobile sales vehicles were launched for Tokushimaru, bringing the total in operation to 24. In addition, 6 new locations were added during the fiscal year for Delicia Net Supermarket, bringing the total to 14 locations, and we worked to expand our customer base and market share through a multichannel approach.」

「As of 31 December 2019, the distribution business operated a total of 61 stores: 51 Delicia food supermarkets, including 1 franchise store, and 10 U-Palette wholesale supermarkets.」

「We worked to reduce cost of sales and selling, general and administrative expenses by reducing waste, cutting utility costs, and reviewing promotional leaflet expenses, among other measures.」

「In terms of earnings, we worked to reduce cost of sales and selling, general and administrative expenses by reducing waste, cutting utility costs through the replacement of refrigeration and freezing equipment, and reviewing promotional leaflet expenses, among other measures. As a result, for the cumulative second quarter of the current consolidated fiscal year, operating revenue was ¥36,570,312 thousand, down 0.5% year on year, and operating profit was ¥621,568 thousand, up 56.6%.」

「In terms of earnings, we worked to reduce cost of sales and selling, general and administrative expenses by reducing waste and reviewing store costs. As a result, for the cumulative first quarter of the current consolidated fiscal year, operating revenue was ¥17,820,042 thousand, up 0.6% year on year, and operating profit was ¥359,669 thousand, up 96.2%.」

「During the period, we also replaced aging equipment to improve customer convenience, including renovations at the Matsumoto and Nakanonishi stores of U-Palette.」

「During the period, the company renovated You Palette Matsumoto and Nakano stores as part of its efforts to renew aging facilities and improve customer convenience. In terms of profitability, while recording one-time expenses associated with capital investment and implementing policy-driven price reductions to match competing supermarkets, the company worked to reduce costs, including disposal losses.」

「On 1 April 2016, the distribution business merged Appleland Co., Ltd. and Matsuya Co., Ltd. and changed its corporate name to Delicia Co., Ltd. As of the end of June 2018, it operated 62 stores in Nagano Prefecture: 52 food supermarkets under the “Delicia” brand, including 1 franchise store, and 10 wholesale supermarkets under the “You Palette” brand. Following the business integration, operations were consolidated under the 2 brands, “Delicia” and wholesale supermarket “You Palette,” from April 2018. The company also pursued measures to improve customer convenience and renew aging facilities, renovating You Palette Matsumoto in June.」

「During the fiscal year, the company renovated 13 stores, mainly through renewal investments in aging locations, and opened Matsumoto Ekimae store in February 2018 at the Matsumoto Bus Terminal building, Alpico Plaza. Although same-store sales declined year on year due to store closures during renovation work, operating profit increased as the company improved store operations, strengthened distinctive product selections centered on prepared foods, and reduced the cost of sales and selling, general and administrative expenses.」

「Since integrating the food supermarket businesses as Delicia Co., Ltd. on 1 April 2016, the distribution business has been consolidating operations under the 2 brands, food supermarket “Delicia” and wholesale supermarket “You Palette.” Following 9 stores in the first 2 quarters, it reopened 4 stores after renovations in the third quarter: You Palette Nagano-Kita and Delicia Hirooka in October, and Delicia Komoro Inter and Delicia Ueda-Kawanishi in November. Although sales declined due to store closures during renovation work, operating profit increased as the company improved store operations and strengthened its product range in line with the conversions to the new store format, while reducing the cost of sales and selling, general and administrative expenses.」

「Alongside the business integration, the company has been consolidating operations under the 2 brands, food supermarket “Delicia” and wholesale supermarket “You Palette,” since the previous fiscal year. During the first quarter of the fiscal year, it reopened Delicia Karuizawa and Delicia Kamimaruko in April, You Palette Usuda and You Palette Minamisaku in May, and You Palette Komoro and You Palette Sunline Ueda in June following renovations. In line with the conversions to the new store format, it improved store operations and expanded the product range to enhance customer convenience and satisfaction.」

「The purpose is to improve efficiency, strengthen sales and realize business synergies at an early stage through the integration.」

「The purpose is to improve efficiency, strengthen sales and realize business synergies at an early stage through the integration.」

「The purpose is to improve efficiency, strengthen sales and realize business synergies at an early stage through the integration.」

「The purpose is to improve efficiency, strengthen sales and realize business synergies at an early stage through the integration.」

「Appleland Co., Ltd. and Matsuya Co., Ltd. were merged on 1 April 2016 to improve efficiency, strengthen sales and realize business synergies at an early stage.」