Establishing the Store and Service Networks as Social Infrastructure

「Under the medium-term management plan “VISION2028” covering the fiscal years ending February 2027 through February 2029, the Company has identified deepening its OMO platform (Note 1), strengthening CRM (Note 2), expanding into adjacent business areas, and expanding its market area by strengthening collaboration with strategic partners as its key strategies.」

「First, as part of efforts to strengthen OMO (Note), we implemented measures centered on strengthening the platform for the “Order Online, Pick Up In Store” service, as well as securing popular products, setting competitive selling prices and conducting effective campaigns.」

「“Revitalizing existing stores” To respond to increasingly diverse customer purchasing behavior, the company aims to improve convenience and customer experience by leveraging the respective strengths of stores and EC, steadily implementing its OMO strategy and further increasing the EC sales ratio.」

「First, as part of strengthening OMO (note), the company focused on reinforcing the foundation for its “order online, pick up in store” service, while securing popular products, setting competitive selling prices and implementing effective campaigns. In particular, the Asahi-brand electric-assist bicycle “Enathis,” which combines high functionality and design with an affordable price, performed well. The company’s previous store openings in urban areas with strong demand for e-commerce sales also produced results, enabling it to achieve higher net sales.」

「We were able to increase e-commerce sales by strengthening the infrastructure for the “Order Online, Pick Up In Store” service, securing popular products, setting competitive selling prices and efficiently managing web advertising.」

「We were able to increase net sales year on year by raising prices during the previous fiscal year, expanding e-commerce sales through strengthened support for the “Order Online, Pick Up In Store” service, and responding to increased demand for repairs and maintenance by consistently assigning skilled staff to stores nationwide.」

「With its OMO strategy (*) as the cornerstone, the Company advanced efficiency improvements in securing popular products and in its operations.」

「The Company is strengthening its OMO strategy (Note) by developing an online ordering and in-store pickup service that integrates its locally based physical stores with online operations, with the aim of making bicycles more accessible and convenient to purchase.」

「Regarding store openings and closures, we opened 1 store in the Tohoku region, 7 in the Kanto region, 3 in the Chubu region and 1 in the Kyushu region. We also closed 1 store in the Kinki region, while another store in the same region ended its franchise agreement and became a directly operated store. At the end of the cumulative third-quarter accounting period, we had 516 stores in total, comprising 498 directly operated stores and 18 franchise stores.」

「The Company opened 3 stores in the Kanto region and 1 store in the Kyushu region. As a result, the number of stores at the end of the first quarter accounting period was 509, comprising 490 directly operated stores and 19 franchised stores.」

「Although the sales floor is small, the company made progress toward establishing a new store format that would serve as an urban bicycle base, offering the same level of service as conventional stores by serving as a hub for its “Order Online, Pick Up in Store” service, carefully selecting and displaying products suited to local demand, and providing quick maintenance and repair services.」

「Regarding store openings and closures, 7 stores were opened in the Kanto region, 4 in the Kinki region and 1 in the Chugoku region, while 1 store in the Kanto region was reduced through store integration. As a result, at the end of the accounting period, the company had 502 stores, consisting of 483 directly operated stores and 19 FC stores. In addition, with the opening of the Cycle Base Asahi Minami-Senju store (Tokyo) on Thursday, 9 September, the number of stores operated by the company reached 500.」

「We expected the increase in bicycle demand during the COVID-19 pandemic to continue to a certain extent into the current fiscal year. By focusing on securing products, particularly through the “Order Online, Pick Up in Store” service, we were able to capture demand for high-value-added products such as electric-assist bicycles.」

「“Strengthening the Digital and IT Infrastructure” By strengthening the digital and IT infrastructure that forms the foundation of management and the core of growth, we will optimize SCM (supply chain management), omnichannel operations and other areas, with the aim of further improving customer convenience.」

「In internet retailing, we have launched an "Order Online, Collect In Store" service and are working to realize an omnichannel model by integrating our locally focused stores with the service, with the aim of providing bicycles in a more accessible and convenient manner.」

「As a new initiative, the Company introduced the smartphone payment service PayPay in July to accommodate increasingly diverse payment methods. It also expanded services to improve customer convenience, including the launch of an online order and in-store pickup service at its Cycle Base Asahi Yahoo! store operated online.」

「Under these circumstances, in addition to our nationwide store network and online sales, we intend to further strengthen various service platforms, including bike sharing, reuse and Cycle Porter, as well as the development of safe and attractive bicycles. We will also seek to improve convenience and increase the frequency and opportunities for customer purchases through the realization of an omnichannel system.」

「As a new initiative, we revamped our website and introduced an official application as part of building the foundation for an omnichannel strategy. Starting with the “Asahi comprehensive website,” the revamped website provides an “online shop,” “store locator” and “corporate website,” making it easier for customers to find the information they need. Through the official application, we began providing timely information such as sales announcements, post-purchase “inspection reminders” and “ride event information,” as well as proposing products and services suited to individual customers.」

「The store serves as a pickup location for the “order online, pick up in store” service, taking advantage of its location in a densely populated area. It is also equipped to provide quick maintenance and repairs in the city center, where many people commute by bicycle.」

「The company will begin implementing an omnichannel strategy by integrating community-based stores with services such as “Order Online, Pick Up In Store,” with the aim of making bicycles more accessible and convenient for customers.」

「Looking ahead, we have worked to strengthen various services, including Cycle Porter, an on-site repair, pickup and delivery service, and online ordering with in-store pickup, with the aim of making our store network and service network an indispensable social infrastructure for bicycle users, just like railways and roads.」