Expense structure reform through the centralization and standardization of group-wide common functions

「We will consider sharing, integrating and optimizing various IT systems, payment functions, logistics networks, product inventories and head-office management functions, with the aim of establishing a value chain that maximizes economies of scale.」

「The company promoted operational efficiency through the introduction of full self-service checkouts and sought to expand customer touchpoints by securing time for customer service. It also reduced the time required for tasks such as inspection, ordering and invoice preparation through the use of mobile devices, and established an operating structure aimed at improving productivity.」

「The company also advanced infrastructure development through IT investment, including the introduction of new digital internal communication tools, an electronic data storage system, and a system for managing registers of extension, renovation and construction projects.」

「In consolidating head-office functions, the company simplified and improved administrative efficiency by integrating the accounting departments, while also promoting the establishment of remote work and the use of a multi-office arrangement. It also improved efficiency in store administration by advancing operational reforms. In addition, it promoted the integration of sales floors and optimized and redeployed staffing levels. These measures helped reduce selling, general and administrative expenses and other administrative costs.」

「The company worked to improve margins and control costs in order to continuously strengthen its earnings base. Specifically, it promoted the successive introduction of newly developed and newly sourced products that capture trends in unplanned consumption, with the aim of introducing products and developing sales floors based on latent needs. It also promoted cross-merchandising of high-gross-margin product groups and their display in multiple areas within stores. At the same time, it optimized and redeployed personnel through the consolidation of head-office functions, which simplified and improved efficiency, the establishment of remote work, the use of a multi-office arrangement, and cross-departmental integration of sales floors to realize the benefits of merging subsidiaries.」

「Under its initiative to continue reforming its earnings structure, the company will strengthen efforts to optimize operating costs by continuing to reform store operations, including reviewing the allocation of personnel to the right positions, to reduce the burden of product management and sales; consolidating head-office and store administrative functions; realizing cost synergies from the merger through PMI, including optimizing and standardizing the merged businesses; and improving and accelerating operations through digital transformation, with a continued focus on thorough cost control.」

「To improve the efficiency of inventory-counting work at the time of financial closing, the company introduced a new smartphone-based inventory-counting system and secured additional operating days by shortening the inventory-counting period from 2 days to 1 day. Making inventory-counting procedures paperless also reduced the administrative burden and contributed to lower costs.」

「In addition, by promoting marketing and operational efficiency through DX, the company reduced advertising expenses and total working hours.」

「The company substantially reduced conventional newspaper inserts and shifted from print-based advertising to head-office-led digital and web advertising, focusing on cost control and thereby reducing advertising expenses. In addition, in view of the risk of COVID-19 infection, the company continued shortened operating hours and focused on measures to reduce utilities expenses at stores, resulting in lower selling, general and administrative expenses.」

「The company focused on cost control by cancelling events to avoid the 3 Cs, substantially reducing newspaper inserts, and shifting from conventional store-led, print-based advertising to head-office-led digital and web advertising. This resulted in lower advertising expenses. In addition, in view of the risk of COVID-19 infection, the company continued shortened operating hours and reviewed staffing levels and operating arrangements. These measures restrained personnel expenses and reduced utilities expenses at stores, helping to reduce selling, general and administrative expenses.」

「By reviewing its operations, including standardizing, centralizing and simplifying work, reforming business processes through the use of IT, and maintaining as small a head office as possible, the company will optimize its workforce deployment plans.」

「The company also installed semi-self-service checkouts at 10 stores, bringing the total to 13 of its 15 home improvement stores, including the 3 stores where installation had been completed by the end of the previous fiscal year.」

「The company also installed semi-self-service checkouts at 9 stores, bringing the total to 12 stores, including the 3 stores where installation had been completed by the end of the previous fiscal year.」

「The company also installed semi-self-service checkouts at 5 stores, bringing the total to 8 stores, including the 3 stores where installation had been completed by the end of the previous fiscal year.」

「As part of its cost structure reform, the company is advancing the streamlining of store back-office operations through process reviews and system implementation, as well as the centralization and standardization of functions shared across the Group.」

「As part of its cost structure reform, the company has begun examining the centralization and standardization of functions shared across the Group.」

「④ As part of its cost structure reform, the company began examining the centralization and standardization of functions shared across the Group.」

「As part of its “expense structure reform,” the company began considering the centralization and standardization of group-wide common functions.」