Improving profitability through structural reform of Titi Kaka

「当社グループでは十分なシナジー効果が生み出せず赤字が継続していた連結子会社の株式会社チチカカを売却したこと」

「As the Company works to concentrate management resources on the grid-scale battery business and the GPU server and other businesses, it determined that developing the business of チチカカ under a partner with knowledge of its brand and business characteristics, as well as management resources in logistics and retail, would be in the best interests of its employees, business partners and customers.」

「The Company strengthened its introduction of mid-priced products and sought to stabilize sales while improving customer satisfaction. During the summer selling season, it also sought to maximize sales opportunities by balancing a product mix offering good value with inventory sales.」

「The RICO series was a high-priced product, but it was very well received by customers familiar with our company, partly because of its extensive embroidery. However, it took longer than expected to appeal to new customers, and penetration among general consumers did not progress as planned. As a result, we were required to review our marketing strategy, including adjustments to the balance between product quality and price.」

「At チチカカ, in terms of merchandise, the Company focused on introducing mid-priced products and sought to stabilize sales while improving customer satisfaction. As a customer-attraction initiative, it also sold collaboration goods with a confectionery manufacturer. In terms of sales, it implemented strategic initiatives to attract customers effectively, leading to sales accompanied by profit.」

「In terms of merchandise, チチカカ established the new RICO category to respond to rising prices, expanded its range of items in response to higher temperatures, and broadened its range of unisex products to meet demand for oversized silhouettes. In terms of sales, it worked to limit discounted sales and thoroughly shared examples of sales activities at strong-performing stores across its store network. It also divided stores according to their characteristics into groups centered on apparel and groups centered on lifestyle goods, with the aim of improving inventory efficiency.」

「In terms of merchandise, チチカカ worked to improve purchasing accuracy and limit purchasing costs by introducing the right products in the right quantities at the right time. In response to the warm winter, it reduced outerwear production, expanded its tops range and sought to attract customers by offering lifestyle goods such as eco-bags and pouches through character collaboration projects. In terms of sales, it worked thoroughly to limit discounts, held preferential sales for regular customers presenting direct-mail materials or membership cards, and sought to strengthen sales of higher-priced products.」

「In terms of merchandise, チチカカ worked to improve purchasing accuracy and limit purchasing costs by introducing the right products in the right quantities at the right time. It also sought to attract new customers through collaboration projects with outdoor brands. In terms of sales, it introduced popular outerwear, knitwear and other products earlier than usual for regular customers, held preferential sales for customers presenting direct-mail materials or membership cards, and worked to strengthen sales of higher-priced products. In terms of store development, no stores were opened during the cumulative third quarter of the consolidated fiscal year, while 9 stores were closed. During the third quarter of the consolidated fiscal year, the number of stores totaled 35: 34 チチカカ stores and 1 outlet store.」

「In terms of merchandise, チチカカ worked to improve inventory efficiency by narrowing the range of new products purchased, with the aim of moving away from high-volume purchasing and high-volume sales. In terms of sales, the Company worked to limit discounted sales by placing greater emphasis on selling at list prices items with a strong sales track record. At its stores, it also thoroughly shared examples of sales activities at strong-performing stores across its store network. In terms of store development, no stores were opened during the cumulative second quarter of the consolidated fiscal year, while 6 stores were closed. At the end of the second quarter of the consolidated fiscal year, there were 38 stores in total: 37 チチカカ stores and 1 outlet store.」

「At チチカカ, we will continue to strengthen the management base by closing unprofitable stores, while creating synergies through the integration of various functions with シーズメン. We will work to strengthen sales capabilities and improve cost efficiency, with the aim of improving earnings.」

「In terms of products, the company focused on sales targeting women in their 30s, its main customer segment, expanded its lineup of revival products with a strong sales track record, and increased repeat offerings of items with high utilization rates.」

「In terms of products, the company sought to increase average spending per customer by introducing Indian products that draw on Chichikaka's distinctive characteristics and strengthening its range of higher-priced items such as dresses and skirts.」

「② Continued diversification of revenue sources ・Expansion into new categories ・Improving the earnings power of subsidiary チチカカ through structural reform ・Continued pursuit of new businesses and business formats」