Revamping the Sales Floor through Merchandising Structural Reform

「Under its “ongoing margin improvement and cost control” initiative, the company worked to continuously improve its earnings structure by planning and developing products that stimulate unplanned consumption and introducing, on an ongoing basis, products identified by buyers through their expertise.」

「Specifically, to introduce products and develop sales floors based on latent needs, we promoted the ongoing introduction of newly developed and newly sourced products that capture trends in unplanned consumption. We also advanced cross-merchandising of high-gross-margin product groups and displays in multiple locations within stores.」

「As part of its efforts to improve customer convenience, in June the company integrated the product masters and checkout functions of its home improvement stores and JOYFUL-２ (arts and crafts), which had previously been operated separately, and is offering a wider range of lifestyle solutions through the integration of store-floor presentation.」

「To strengthen sales, the company reviewed store-floor presentation and selling methods, including recommending high-value-added products and selling related products across product groups and departments.」

「Gross profit margins improved in both the housing-related and lifestyle-related categories through stronger merchandising initiatives, optimized cost control, and proactive investment in new and existing stores.」

「The company also focused on improving margins by promoting a strategic product mix, and gross profit margins in the housing-related category improved substantially.」

「To emphasize product relevance from the customer's perspective, we changed the groupings and names of product categories and reorganized the organization under the new product groupings.」

「Gross profit increased by ¥3,322 million from the previous fiscal year to ¥34,940 million, up 10.5% year on year, due in part to improved gross profit margins resulting from new merchandising initiatives, including developing new suppliers without being bound by conventional thinking and actively introducing new products.」

「In the Hitachinaka area, the company is also actively pursuing new categories, including expanding its outdoor goods department and beginning sales of fishing equipment.」

「In terms of products, the company is pursuing new merchandising initiatives, including working with new suppliers without being bound by conventional thinking and actively introducing new products.」

「In terms of products, the company has pursued new merchandising initiatives, including working with new suppliers without being bound by conventional thinking and actively introducing new products, which contributed to higher average customer spend.」

「The company is also reviewing product categories and revising store-floor presentation and product selection methods based on data, while carrying out store-floor transformation in a systematic manner and developing attractive stores. In August last year, at the Mizuho store, it changed the zoning of its own departments—lighting, eyewear and watches—in conjunction with the introduction of 5 tenants.」

「Under its “merchandising structural reform,” the company continues to reform its merchandising processes by reviewing transaction formats, sourcing routes and individual products, while working to strengthen product appeal from the customer's perspective.」

「We are also reviewing product classifications, revising sales-floor presentation and assortment methods based on data, systematically implementing sales-floor reforms and promoting the creation of attractive stores. In August, at the Mizuho store, we introduced 5 tenants and changed the zoning of our sales floors for lighting, eyewear and watches.」

「While the review of products handled under the merchandising structural reform is producing a certain level of results」

「② Under its “merchandising structural reform,” the company is promoting store-floor transformation through a review of suppliers, product selection and pricing policies, and the sales mix, among other measures.」

「Under its “merchandising structural reform,” the company is promoting store-floor transformation through a review of supplier policies, product selection and pricing policies, and the sales mix, among other measures.」