Improving Gross Margins and Low-Cost Store Operations

「Against this backdrop, the Group continued to pursue thorough low-cost management, while working diligently to strengthen its handling of original products and create synergies with its subsidiary サンモール. Guided by its corporate philosophy of "becoming infrastructure that supports people's lives," it focused on chain-store operations as a convenient local store for everyday needs.」

「当社グループは引き続き徹底したローコスト経営を推進すると共に」

「The company is thoroughly implementing low-cost management by eliminating 「ムリ・ムラ・ムダ」—overburden, inconsistency and waste.」

「On the profit side, gross profit declined due in part to lower collection of JV products. In addition to higher costs related to proactive investments, including M&A-related expenses and depreciation associated with vehicle purchases, rising utilities and other expenses put pressure on profit, resulting in lower profit year on year.」

「The Group will continue its low-cost management by thoroughly eliminating 「ムリ・ムラ・ムダ」—overburden, inconsistency and waste—while limiting major risks and making cautious investments on the premise of stable growth.」

「On the profit side, although controls on various costs and reductions in utilities and other expenses through low-cost management had an effect, they were insufficient to offset the declines in sales and gross profit, resulting in lower profit year on year.」

「Selling, general and administrative expenses were ¥6,520.677 million, up 0.9% year on year, and represented 22.7% of sales, down 1.0 percentage point. This was mainly attributable to the expanding benefits of low-cost operations, controls on various costs, and reductions in utilities and other expenses resulting from lower electricity consumption and unit prices through power conservation. As a result, operating profit increased by ¥75.234 million to ¥876.378 million, up 9.4% year on year, resulting in higher profit.」

「On the profit side, the company considered passing on higher procurement unit prices to selling prices on an individual, timely and appropriate basis, while focusing on its low-price strategy. Profit also increased as a result of efforts to limit various costs and reduce utilities and other expenses.」

「Profit increased as a result of higher gross profit supported by strong consumer spending and efforts to limit cost increases through continued power conservation and other measures.」

「Sales continued to perform generally well, helped in part by price increases in response to higher procurement unit prices. On the expense side, the company was able to limit increases in electricity and other utility costs by conserving electricity, resulting in higher profit.」

「In addition to low-cost management and unique procurement practices, the company established 2 logistics centres in-house and built warehouse operations and a product delivery system internally, while pursuing reductions and optimisation of logistics costs」

「Under these circumstances, our group continued to focus on chain-store operations as a convenient local store under the corporate philosophy of becoming infrastructure that supports people’s lives, accelerating store openings primarily at premises with existing facilities, strengthening its range of JV products (*) and private-label products, and operating stores at consistently low cost, including through power conservation.」

「Under these circumstances, our group focused on chain-store operations as a convenient local store under the corporate philosophy of becoming infrastructure that supports people’s lives, including by expanding the store base through a scrap-and-build strategy, strengthening procurement of private-label and JV products (*), and operating stores at low cost.」

「Under these circumstances, our group continued to strengthen its selection of lower-priced essential everyday goods and to focus on low-cost store operations in order to fulfill its role as a highly convenient local everyday-needs store, under the corporate philosophy of becoming infrastructure that supports people’s lives.」

「Cost of sales decreased by ¥22.467 million from the previous consolidated fiscal year to ¥19,373.266 million, down 0.1% year on year. This was due to the continued control of store inventory at appropriate levels by pursuing delivery efficiency through in-house logistics, although procurement for 4 new stores and other locations increased, and manufacturing costs were recorded for the newly launched private-label product, 尚仁沢の天然水.」

「Under the corporate philosophy of becoming infrastructure that supports people’s lives, our group continued to focus on low-cost store operations in order to strengthen the selection of lower-priced essential everyday goods and fulfill its role as highly convenient local everyday-needs stores.」

「Under these circumstances, our group continued to strengthen its selection of lower-priced essential everyday goods and to focus on low-cost store operations in order to fulfill its role as a highly convenient local everyday-needs store, under the corporate philosophy of becoming infrastructure that supports people’s lives.」

「Regarding cost of sales, the company continued to control store inventory at appropriate levels by pursuing delivery efficiency through in-house logistics, while」

「The Group had been considering the acquisition of a beverage manufacturing business with the aim of ensuring a stable supply of its core product, bottled beverages, and further reducing procurement costs in the future. Following repeated discussions with 株式会社ティー・シー・シー, the Group has reached an agreement to acquire the beverage manufacturing business owned by 株式会社ティー・シー・シー.」

「Under these circumstances, our group continued to strengthen its selection of lower-priced essential everyday goods and to focus on low-cost store operations in order to fulfill its role as a highly convenient local everyday-needs store, under the corporate philosophy of becoming infrastructure that supports people’s lives.」

「We continued to focus on low-cost store operations in order to strengthen the selection of lower-priced essential everyday goods and fulfill our role as highly convenient local everyday-needs stores.」

「Under these circumstances, our group continued to focus on low-cost store operations while strengthening the selection of lower-priced essential everyday goods and fulfilling its role as highly convenient local everyday-needs stores.」

「The Group continues to focus on low-cost store operations in order to fulfill its role as a highly convenient local shopping destination.」

「Under these circumstances, our group continued to focus on low-cost store operations while strengthening the selection of lower-priced essential everyday goods and fulfilling its role as highly convenient local everyday-needs stores.」

「Cost of sales increased by ¥15.261 million from the previous fiscal year to ¥17,157.725 million, up 0.1%, as the in-house operation of logistics improved delivery efficiency, increasing the volume per delivery and reducing delivery frequency, while purchases and in-store inventory were controlled at appropriate levels.」

「Under these circumstances, our group continued to focus on low-cost store operations while strengthening the selection of lower-priced essential everyday goods and fulfilling its role as highly convenient local everyday-needs stores.」

「Under these circumstances, our group continued to focus on low-cost store operations while strengthening the selection of lower-priced essential everyday goods and fulfilling its role as highly convenient local everyday-needs stores.」

「Under these circumstances, our group continued to focus on low-cost store operations while strengthening the selection of lower-priced essential everyday goods and fulfilling its role as highly convenient local everyday-needs stores.」

「By further enforcing product management through EDLP policies and JIOS, among other measures, we will standardize and improve the efficiency of store operations, pursue even lower-cost operations, and enhance profitability.」

「For customers, we will continue to pursue sales floors where they can easily and conveniently purchase the products they want when they want them; for employees, work environments where everyone can perform their tasks without undue effort or waste; and, from a management perspective, higher gross margins and low-cost store operations.」