Profitability-focused expansion centered on secondhand premises with existing fit-outs

「The main items in the retail business were equipment for the opening of the PC Pavilion Nonoichi store, amounting to ¥11.088 million, and replacement of the main server, amounting to ¥5.520 million.」

「As a general rule, we open stores primarily in second-hand turnkey properties. This is because, when selecting locations for new stores, we place the greatest emphasis on store profitability. We conduct preliminary site surveys covering opening conditions such as deposits and rent, the population within the trade area, the status of competing stores and the surrounding commercial environment, and prepare investment recovery periods and profit forecasts. Only properties meeting certain conditions are selected for store openings.」

「Capital expenditure during the fiscal year totalled ¥27.153 million. The main items were buildings related to the relocation of the Fuji store, amounting to ¥18.210 million, and company vehicles, amounting to ¥7.600 million.」

「The main items were land in Makinohara, Shizuoka, of ¥10.608 million, assets of ¥8.774 million related to the new opening of the Fujieda store, and company vehicles of ¥2.667 million.」

「In terms of store expansion, we opened “OA Nagashima Shizuoka Main Store” on 8 December 2018 as a flagship store in central Shizuoka. Central Shizuoka had lagged behind western and eastern Shizuoka in sales because it had no flagship store, but the new Shizuoka Main Store is a roadside store facing a national highway with heavy traffic, and we expect it to generate sales exceeding those in western and eastern Shizuoka. Since opening, customer traffic and sales have exceeded our expectations, and we expect both to increase further as awareness of the store grows.」

「In terms of store expansion, we opened the smartphone-repair specialist store “Smartphone Repair Workshop OA Nagashima Shizuoka PARCO” inside Shizuoka PARCO in August. We expect this new store in a popular commercial facility with strong customer-drawing power to expand sales and profits, improve awareness and credibility of the “OA Nagashima” brand, and attract younger customers, which has been an issue to date. Meanwhile, “Shizuoka KEY'S CAFE,” which operated in the same area, and the “iPhone Repair Workshop” on the third floor of that store closed in July.」

「In terms of store expansion, the Hamamatsu Takatsuka store, which opened in the previous fiscal year, operated at full capacity during the fiscal year. However, total store sales declined partly because the Okayama store was closed in August.」

「We also advanced our relocation and store-opening strategy, including relocating the Shida store to a newly built location and opening the new Hamamatsu Takatsuka store. Sales are expected to improve as awareness increases.」

「Under these conditions, in our personal computer business we sought to expand sales by relocating and reopening the OA Nagashima Shida store on 8 October and opening the new OA Nagashima Hamamatsu Takatsuka store on 19 November.」

「As part of our store expansion, we relocated the ageing OA Nagashima Shida store at the end of September to a newly built store in a better location with heavier traffic. We held a pre-opening event from 30 September, attracting many customers from the morning and making a strong start. Once fully operational, the new store is expected to generate higher sales than the former store.」

「As a general rule, we open stores primarily in second-hand turnkey properties. This is because, when selecting locations for new stores, we place the greatest emphasis on store profitability. We conduct preliminary site surveys covering opening conditions such as deposits and rent, the population within the trade area, the status of competing stores and the surrounding commercial environment, and prepare investment recovery periods and profit forecasts. Only properties meeting certain conditions are selected for store openings.」