Fundamental Structural Reforms of Unprofitable Stores and Businesses

「At our overseas stores, we implemented structural reforms at our Singapore operations in fiscal 2025.」

「In addition, profit increased as we further reduced selling, general and administrative expenses through income-and-expense-structure reforms under Department Store Science.」

「As part of restructuring, the 2 stores in Tianjin, China, Tianjin Isetan and Tianjin Binhai New Area Isetan, are scheduled to end operations when the lease terms for their buildings expire (scheduled for spring 2024).」

「We are accelerating nationwide initiatives for rigorous expense control under the Department Store Science income-and-expense-structure reform programme, significantly improving the earnings of the domestic department store business, including turning the regional department stores as a whole profitable.」

「Profitability at regional stores improved significantly, owing in part to progress in reforming their income and expense structure.」

「The loss on store closures for the consolidated fiscal year was mainly an impairment loss of ¥1,049 million, arising primarily from the closure of Chengdu Isetan Department Store Co., Ltd. and the small and medium-sized stores of 株式会社三越伊勢丹.」

「In fiscal 2020, we reallocated management resources and restructured our business portfolio by ending operations at stores with profitability issues, including Mitsukoshi Ebisu, Isetan House and Bangkok Isetan, terminating the business of 株式会社三越伊勢丹研究所, and transferring the shares of 株式会社三越伊勢丹不動産.」

「We reached a certain milestone in large-scale restructuring by ending operations at large stores with profitability issues, including Isetan Sagamihara, Isetan Fuchu and Niigata Mitsukoshi, and deciding to close Mitsukoshi Ebisu.」

「While advancing cost reductions through the closure of some stores in October, the disposal of unprofitable stores and expense controls, we are also pursuing fundamental business-model reform to reflect changes in customer needs.」

「We ended operations at Isetan Sagamihara and Isetan Fuchu at the end of September 2019. Large-scale restructuring is almost complete, and going forward we will transition our business models using every available means, including resizing and changing business formats, in line with the needs of customers in each region and the circumstances of each store, in order to meet the needs of local customers.」

「At our branches, regional department stores and overseas stores, we have pursued the restructuring of stores with profitability issues in order to reallocate limited management resources to new growth areas. Large-scale restructuring is almost complete. Going forward, we will transition our business models using every available means, including changing business formats, in line with the needs of customers in each region and the circumstances of each store, and work to meet the needs of local customers. As part of this, we decided to close the Jurong East store in Singapore at the end of March 2020.」

「By implementing the closure of unprofitable stores and changing the direction of unprofitable businesses pursued since fiscal 2017, we reached a certain milestone in the large-scale restructuring. We will continue and thoroughly implement cost-structure reforms, but going forward we will shift our focus fully to initiatives for the next phase of growth, including developing the business foundation for a business-model transition, investing in stores and reforming store businesses.」

「At our branches, regional department stores and overseas stores, we decided to end operations at Isetan Sagamihara, Isetan Fuchu, Niigata Mitsukoshi and the new wing of Iwataya Kurume, all of which had profitability issues, in order to reallocate limited management resources to new growth areas. Going forward, we will pursue business-model reform by considering every possibility, including changing business formats and resizing, in line with the needs of customers in each region and the circumstances of each store.」

「As a result, we decided to end operations at Isetan Sagamihara, Isetan Fuchu, Niigata Mitsukoshi and the new wing of Iwataya Kurume. Operations at Isetan Sagamihara and Isetan Fuchu were scheduled to end in September 2019, at Niigata Mitsukoshi in March 2020, and at the new wing of Iwataya Kurume in March 2019. Going forward, we will pursue structural and business-model reforms using every available means, including changing business formats and resizing, in line with the needs of customers in each region and the circumstances of each store.」

「At our branches, regional department stores and overseas stores, we have continued considering the restructuring of stores with profitability issues in order to reallocate limited management resources to new growth areas. Going forward, we will pursue restructuring using every available means, including resizing and changing business formats, to meet the needs of local customers while taking into account the needs of customers in each region and the circumstances of each store.」

「As a result, in order to reallocate limited management resources to new growth areas, we ended operations at Isetan Matsudo on 21 March 2018. We sincerely apologise for the inconvenience caused by the closure and express our heartfelt thanks for the support and patronage we have received. Going forward, we will continue reforms using every available means, including changing the business format, to meet the needs of local customers in line with regional and store characteristics.」

「While deciding to close the unprofitable Omiya store in January 2018 and the Hibarigaoka store in February, we planned to open a store in FOOD&TIME ISETAN YOKOHAMA in Yokohama Sotetsu Joinus in March and in the new commercial facility Meets Kokubunji, scheduled to open at the north exit of Kokubunji Station in April. 株式会社マミーナ was scheduled to terminate its business at the end of March 2018.」

「As we considered restructuring stores with profitability issues, we decided to end operations at Isetan Matsudo at the end of March 2018 (scheduled).」

「At our branches, regional department stores and overseas stores, we ended operations at the 2 stores with profitability issues, Mitsukoshi Chiba and Mitsukoshi Tama-Center, in March in order to reallocate limited management resources to new growth areas. Going forward, we will pursue restructuring using every available means to meet the needs of local customers while taking into account the needs of customers in each region and the circumstances of each store.」

「Although the Group has been pursuing various measures to improve profitability and strengthen its financial base, we ended operations at Mitsukoshi Chiba, Mitsukoshi Tama-Center and the smaller Mitsukoshi Takasaki on 20 March of this year in order to reallocate limited management resources to new growth areas and achieve proactive growth amid rapidly changing economic conditions.」

「We concluded that stores whose earnings were not expected to improve in the future should undergo restructuring, that limited management resources should be reallocated to new growth areas, and that proactive growth should be achieved by providing services that satisfy customers more than ever. Accordingly, we decided to end operations at Mitsukoshi Chiba and Mitsukoshi Tama-Center in March 2017 (scheduled).」

「For stores and businesses that have become unprofitable, we will pursue fundamental restructuring to improve corporate performance.」