Standardization of Business Infrastructure and Establishment of a New Supermarket Model

「Under the First Medium-Term Management Plan covering 3 years from fiscal 2017, the plan was to pursue further growth by adding synergies created by the holding company to the growth of the operating companies, as the operating companies were enjoying steady organic growth in the business environment at the time. However, changes in customers’ lifestyles, intensifying competition across business formats and environmental changes such as digitalization progressed more rapidly than anticipated when the plan was formulated, and the Group was unable to secure the earnings growth it had projected.」

「The Company advanced development of the private-label product “eatime,” centered on the Product Development Promotion Department newly established this fiscal year, bringing the total to 77 items by August.」

「For the fiscal year ending February 2020, the Company will pursue further cost reductions by expanding the integration of materials procurement and purchasing, while developing common infrastructure such as back-office functions and systems. With regard to the new supermarket model, identified as a medium- to long-term issue, the Company will begin giving it concrete form. In addition, in March 2019, it established the Product Development Promotion Department to accelerate development of the Group's private-label brand, eatime, and will promote product development that gives customers a reason to visit its stores.」

「Against this backdrop, to achieve the medium-term management plan covering 3 years from the fiscal year ending February 2018, the Company established the Materials Procurement Department and the Procurement Integration Promotion Department this fiscal year to accelerate synergy creation. It also reorganized its structure by integrating the finance and accounting and ICT departments of ㈱マルエツ and ㈱カスミ to promote efficiency through standardized business infrastructure. In addition, to transition to a new supermarket model, it established the Format Development Department and the Digital Business Planning Department and is continuing its examination of the model.」

「Against this backdrop, to achieve the medium-term management plan covering 3 years from the fiscal year ending February 2018, the Company established the Materials Procurement Department and the Procurement Integration Promotion Department this fiscal year to accelerate synergy creation. It also reorganized its structure by integrating the finance and accounting and ICT departments of 2 operating companies to promote efficiency through standardized business infrastructure. In addition, to transition to a new supermarket model, it established the Format Development Department and the Digital Business Planning Department and began examining the model.」

「The Group formulated and announced a medium-term management plan covering 3 years from the current consolidated fiscal year, with the maximization of synergies through standardized business infrastructure and the challenge of establishing a new supermarket model adapted to changes in consumer behavior as its basic policies. Looking ahead to the operating environment over the next 10 years, the Group recognized threats and opportunities from the perspectives of changes in population and household structure in the Tokyo metropolitan area, changes in food consumption, technological innovation and the cost structure, and will implement product, ICT, cost-structure and logistics reforms to achieve the plan's targets.」

「To realize the creation of synergies by maximizing the advantages of scale, product reform will focus on ① developing private-label products, ② integrating product flows to maximize effectiveness and efficiency, and ③ responding to changes in eating habits. ICT reform will focus on ① integrating ICT infrastructure and ② promoting business reform through the use of new technologies. Cost-structure reform will focus on ① establishing common head-office functions across the Group to maximize effectiveness and efficiency and ② reducing costs through joint procurement of materials and other items. Logistics reform will promote the establishment of a logistics structure that pursues optimal efficiency for the Group.」

「The Group formulated and announced on 11 April a medium-term management plan covering 3 years from the current consolidated fiscal year, with the maximization of synergies through standardized business infrastructure and the challenge of establishing a new supermarket model adapted to changes in consumer behavior as its basic policies. Recognizing threats and opportunities in the operating environment over the next 10 years from the perspectives of changes in population and household structure in the Tokyo metropolitan area, changes in food consumption, technological innovation and the cost structure, the plan calls for implementing product, ICT, cost-structure and logistics reforms to achieve its targets.」

「Against this backdrop, the Group announced a new medium-term management plan covering the 3 years from fiscal 2017, with “maximizing synergies through the standardization of business infrastructure” and “taking on the challenge of establishing a new supermarket model that responds to changes in consumer behavior” as its basic policies.」