Shifting the Business Portfolio from Department Stores and PARCO Toward Real Estate and New Businesses

「In developing and owning proprietary content, we decided to acquire shares in PiEROTH JAPAN CO., LTD. to provide experiential value to customers seeking high-quality and exciting consumption, thereby expanding our business foundation in the food and beverage field. In the game label PARCO GAMES, which launched its publishing business in 2025, we began selling its fourth title, “Finding Polka,” and announced the publishing of its fifth title, “DEPERSON.”」

「輸入ワインの販売事業を展開するピーロート・ジャパン株式会社を傘下に有するClanet Holdings株式会社全株式を、26年9月1日付で取得。」

「To develop and own proprietary content for new growth in the retail business, we entered the reuse business through a joint venture with KOMEHYO CO., LTD. and successively opened MEGRUS, a specialty store for purchasing branded goods, inside department stores and PARCO stores. In the department store business, we also jointly developed a next-generation sweets brand with another company, while in the shopping center business we established PARCO GAMES and made a full-scale entry into game publishing, including the development and sale of original games.」

「Launch of the commercial-facility value-enhancement business — investment in external properties and commercial advisory services」

「In addition, to expand customer touchpoints and provide new value by entering the reuse market, which is expected to grow, we signed an agreement with KOMEHYO CO., LTD. in November 2024 to establish a joint venture. We also established a business succession fund jointly with external partners to address business succession issues in each region, contribute to local communities and identify attractive regional content, and made an investment in the fund's first project.」

「In the developer business, revenue for the interim consolidated accounting period increased 11.4% year on year to ¥37,013 million, business profit increased 111.3% to ¥4,210 million, and operating profit increased 87.1% to ¥4,176 million.」

「Under “Evolution of Group Synergies,” in the developer business, the Company advanced development of mixed-use commercial facilities in the Nagoya Sakae and Osaka Shinsaibashi areas scheduled to open in 2026, and advanced development plans for the Fukuoka Tenjin area scheduled to open in 2030. It also decided to reorganize businesses within the Group to strengthen the interior finishing and building management businesses.」

「In the developer business, revenue for the cumulative third quarter of the consolidated fiscal year increased 25.6% year on year to ¥50,836 million, while operating profit increased 33.2% to ¥3,089 million.」

「During the second quarter, in addition to promoting the Nagoya Sakae area “(tentative name) Nishiki 3-chome 25-Banchi District Plan,” the Osaka Shinsaibashi area “(tentative name) Shinsaibashi Project,” and the redevelopment plan in the Fukuoka Tenjin area, the rental residence Raficia Kamimaezue, which had been under development in Nagoya, was completed.」

「Under the Developer Strategy, in March this year, we established J. Front 都市開発株式会社 directly under the holding company to achieve further business growth, and transferred to it the developer business previously operated by PARCO. Through this business reorganization, we will establish a structure for swift decision-making from the perspective of optimizing the Group as a whole, while formulating and implementing medium- to long-term strategies, including the effective use of owned assets through large-scale development projects in the Group's priority areas, expansion of the architectural and interior finishing business, and diversification of earnings through asset replacements and asset management.」

「To achieve further business growth, we established J. Front 都市開発株式会社 directly under the holding company and decided to transfer to that company the developer business currently operated by PARCO.」

「To achieve further growth in the developer business, we established J. Front 都市開発株式会社 directly under the holding company and decided to transfer to that company the developer business currently operated by PARCO.」

「Under the Developer Strategy, we are entering the residence business to maximize the use of owned real estate and expand our real estate portfolio, while also advancing one of the largest mixed-use developments in the Nagoya Sakae and Osaka Shinsaibashi districts.」

「Under the Developer Strategy, we are entering the residence business to maximize the use of owned real estate and expand our real estate portfolio, while also advancing one of the largest mixed-use developments in the Nagoya Sakae and Osaka Shinsaibashi districts.」

「Meanwhile, as changes in the business environment have further increased the importance of transforming the business portfolio, we will clarify the path toward renewed growth through 2030, including business growth in non-retail fields such as development and payment and financial services by making maximum use of the Group's management resources.」

「Under the Developer Strategy, we are making use of the real estate properties consolidated under PARCO, developing new properties and pursuing a variety of developments outside the commercial sector. We are also advancing real estate development plans centered on the priority areas of Nagoya and Shinsaibashi.」

「Using properties transferred through the centralization of the real estate business under PARCO in September last year, we opened a commercial facility in March on the former site of the Matsuzakaya distribution center. We are also advancing real estate development plans centered on Nagoya and Shinsaibashi, priority areas for our Group's developer strategy.」

「In particular, we position the Developer Strategy as a growth driver for the Group's renewed growth and will allocate management resources to it as our most important strategy.」

「As part of the policy of making PARCO a wholly owned subsidiary, we also proceeded with preparations to consolidate the real estate business under PARCO.」

「We believe this has advanced the establishment of a group-wide structure for pursuing the fundamental and flexible transformation of the business portfolio, while accelerating non-linear growth beyond the trajectory of the past by making maximum use of the Group's management resources.」

「We believe it is necessary to transform the business portfolio fundamentally and flexibly by making the target a wholly owned subsidiary, and to drive this transformation forward rapidly through swift decision-making.」

「In addition to the initiatives described above, the transfer of stores surrounding the Kobe, Kyoto and Ueno stores from the department store business also contributed, with revenue up 5.2% year on year to ¥8,820 million and operating profit up 100.5% to ¥5,729 million, partly due to gains on the sale of property, plant and equipment.」

「In addition to the initiatives described above, the transfer of stores surrounding the Kobe, Kyoto and Ueno stores from the department store business also contributed, with revenue up 6.7% year on year to ¥4,421 million and operating profit up 4.9% to ¥1,686 million.」

「As a result of these initiatives, revenue from the real estate business increased 26.6% to ¥16.995 billion. Despite a decline caused by the反動減 from gains on the sale of fixed assets recorded in the previous year, operating profit increased 12.9% to ¥4.664 billion.」

「Following the opening last year of GINZA SIX and Ueno Frontier Tower, we are advancing initiatives under our urban-dominant strategy, which seeks to maximize the appeal of entire areas and grow together with local communities. In September, we opened Familia Kobe Flagship Store near Daimaru Kobe as a new business format offering education, food and medical services. In November, BINO Ginza, which opened its first phase last year under the theme of beauty and health, held its grand opening.」

「As a result of these initiatives, including measures to revitalize existing properties, revenue increased 43.4% year on year to ¥8.387 billion, and operating profit increased 71.8% to ¥2.857 billion.」

「As a result of these initiatives, including measures to revitalize existing properties, revenue increased 67.9% year on year to ¥4.143 billion, and operating profit increased 267.3% to ¥1.607 billion.」

「We focused primarily on large-scale development projects in the real estate business. In April, we opened GINZA SIX, an innovative luxury mall with approximately 47,000 square meters of retail space, one of the largest commercial facilities in the Ginza area. In November, we opened Ueno Frontier Tower, a mixed-use commercial facility developed on the former site of the south wing of Matsuzakaya Ueno.」

「As a result, revenue increased 152.5% year on year to ¥9.497 billion, and operating profit increased 96.1% to ¥3.059 billion.」

「As a result, revenue increased 133.2% year on year to ¥5.849 billion, and operating profit increased 51.3% to ¥1.663 billion.」

「As a major development project under the Urban Dominant Strategy and the real estate business, which is positioned as a new growth business aimed at growing together with local communities, we opened GINZA SIX in April.」

「While reducing the share of the department store and PARCO businesses, which previously accounted for nearly 90% of Group operating profit, to approximately 70%, we will increase the share of the real estate business by strengthening it and expanding into new business areas.」