Strengthening logistics infrastructure through the acquisition of an adjacent warehouse and inventory consolidation

「In this environment, in the domestic e-commerce business, we will continue to enhance delivery services through the stable operation of same-day shipment, including on Sundays and public holidays」

「The Company will continue to enhance delivery services through the stable operation of a same-day shipping system, including on Sundays and public holidays.」

「In domestic e-commerce sales, we have continued to further improve customer service since the previous fiscal year, including by ensuring the stable operation of same-day shipment on Sundays and public holidays for certain core products.」

「At the head office logistics center, we have worked to introduce AutoStore (an automated warehouse picking system) and a material-handling system (automated logistics control system), and to maintain precise inventory management.」

「In the domestic e-commerce business, new initiatives, including the stable operation of same-day shipment on Sundays and public holidays for certain core products, are beginning to improve customer service.」

「In our domestic e-commerce sales logistics operations, we began trial shipments on the same day on Sundays and public holidays for certain core products in August, while continuing efforts to secure profits to eliminate operating losses, with the aim of further improving customer service.」

「Total capital expenditures, including intangible assets, for the fiscal year amounted to ¥49.369 million. The main expenditure was investment in the head office logistics center.」

「The main factors were expenditure of ¥1.260 million on PC purchases and expenditure of ¥2.700 million on modifications to the warehouse management system at the head office logistics center.」

「The main factors were expenditure of ¥7.609 million on modifications to the warehouse management system and income of ¥278.461 million from the cancellation of insurance reserve funds (directors’ insurance).」

「The main factors were income of ¥278.461 million from the cancellation of insurance reserve funds (directors’ insurance), expenditure of ¥1.352 million for contributions to insurance reserve funds (directors’ insurance), and expenditure of ¥7.392 million for modifications to the inventory management system at the head office logistics center.」

「At the logistics center, we disposed of products worth ¥132.194 million that were expected to have low sales prospects, as part of efforts to optimize logistics operations and reform the business to generate stable profits.」

「Expenditure of ¥2.437 million for the acquisition of handheld terminals for the logistics system at the head office logistics center」

「Optimization of logistics operations at the new headquarters building completed in August 2020」

「We will promote improvements to our sales and inventory management structure, including by advancing efficient SKU-level product management at the new head office logistics center, which has commenced operations, optimizing the newly introduced material-handling system (automated logistics control system), and improving shipping capacity.」

「The main factors were a ¥2,274.576 million increase in buildings, net, due to completion of the new head office logistics center; a ¥49.003 million increase in structures, net; and a ¥1,567.474 million decrease in construction in progress transferred upon completion of the new head office logistics center. The new head office logistics center was acquired at the end of May.」

「Head office (Fushimi Ward, Kyoto): new head office logistics center, ¥3,200 million; amount paid to date, ¥1,993 million; construction commenced in March 2019; completion in August 2020; maximum shipping capacity, 3.2 times the current level」

「Property, plant and equipment amounted to ¥3,919.433 million, an increase of ¥1,975.959 million from the end of the previous fiscal year. The main factor was a ¥1,981.308 million increase in construction in progress due to progress on construction of the new head office logistics center.」

「Property, plant and equipment amounted to ¥3,051.229 million, an increase of ¥1,107.755 million from the end of the previous fiscal year. The main factor was a ¥1,116.091 million increase in construction in progress due to progress on construction of the new head office logistics center.」

「Property, plant and equipment amounted to ¥3,036.995 million, an increase of ¥1,093.520 million from the end of the previous fiscal year. The main factors were a ¥1,108.734 million increase in construction in progress due to progress on construction of the new head office logistics center and an ¥18.130 million decrease in buildings, net, due to the disposal of the stock warehouse.」

「The adjacent warehouse is scheduled to be redeveloped as the new head office logistics center, with construction scheduled to begin in March 2019 and completion scheduled for June 2020.」

「Increase in construction in progress due to the recognition of construction management costs for the new head office logistics center (an increase of ¥4.278 million from the end of the previous fiscal year)」

「As the starting point for developing new businesses, we have accelerated investments in personnel for the sale of our internally developed core EC system and development plans for a new warehouse and logistics center.」

「We changed the terms of our capital and business alliance with the Odakyu Electric Railway Group and will accelerate the development plans for warehouses and logistics centers by making full use of the group’s expertise, know-how and networks, including its real estate development capabilities and networks, as well as its funding capabilities.」

「Against this economic backdrop, we continued to operate under our corporate philosophy, “There’s nothing better than an inner life that inspires!” To meet increasingly diverse customer needs, we partially renovated the warehouse on the adjacent site, expanded our product range and strengthened our logistics capabilities.」

「At the distribution center, efforts to introduce a material-handling system (automated logistics control system) and maintain precise inventory management enabled daily shipping capacity of up to 16,172 items and 7,664 units (actual results as of 23 June 2017).」

「At the distribution center, shipping capacity has increased through the introduction of a material-handling system (automated logistics control system) and efforts to maintain precise inventory management. The acquisition of the warehouse adjacent to our facilities has also increased inventory storage capacity. However, further logistics efficiency is essential to achieve future earnings growth and strengthen our profit-generating base, so we will establish a structure capable of providing appropriate inventory management capacity and further increasing speed in anticipation of future logistics needs.」

「At the warehouse adjacent to our facilities that we acquired in February, we are working to improve inventory management efficiency, including by consolidating inventory held at external warehouses, and preparing for future business expansion.」