Avoiding Large-Scale Expansion and Selecting Optimal Store Formats Based on Regional Characteristics

「For Alex Sports 沖浜店 (Tokushima, Tokushima) and 好日山荘徳島山城店 on the third floor of the same store, the Group compared current earnings with the future cash flows following conversion to a real estate leasing business, determined that conversion was more rational, and closed them. In December of that year, it relocated to the former Our Liquor 沖浜店 site in the YAMASHIRO TERRACE complex (Tokushima, Tokushima) and reopened as Alex Sports 山城本店 (Tokushima, Tokushima).」

「In April of that year, the Group relocated the Plaza Alex Hibiya Chanté (Chiyoda-ku, Tokyo) store from the facility's third floor to its basement level, which is dedicated to women's beauty and health, and reopened it after renovation.」

「In December of that year, the Group opened Jiyugaoka WHISKY (Meguro-ku, Tokyo), offering 9 varieties of whisky cask spirits by the measure and more than 500 varieties of whisky from around the world. In January 2025, it opened Alex Comfort 六甲アイランド (Higashinada-ku, Kobe), carrying imported cosmetics, fragrances, general cosmetics, household goods, food and other products.」

「In September of that year, the Group opened Yamashiro WHISKY at the former site of Decor Green & Earth Café as a store carrying whiskies from around the world.」

「In April 2024, the company opened “PLAZA ALEX Hibiya Chanter” (Chiyoda-ku, Tokyo) as a lifestyle shop offering carefully selected products with a sophisticated and original assortment, including interior goods, bags and accessories, regardless of whether they were from Japan or overseas or major or niche brands, and selected for their ability to grow more appealing with use. In the same month, it opened “&lulu MARK IS Fukuoka Momochi” (Chuo-ku, Fukuoka), offering lifestyle goods, cosmetics, food and other items that beautify everyday life within a one-of-a-kind concept.」

「For Our Liquor 藍住店 (Itano, Tokushima), the Group compared the future cash flows from current operations with those that would result from conversion to a real estate leasing business, determined that conversion was more rational, and closed the store in January 2024. As a result, the number of Group stores at the end of the second quarter of the current consolidated fiscal year was 39.」

「The Group relocated the cycle shop GoGoBIKE from the YAMASHIRO TERRACE complex (Tokushima, Tokushima) to Decor 川内店 (Tokushima, Tokushima). It also added outdoor products and renovated the store to propose cycle camping. In the same month, the outdoor shop 好日山荘徳島山城店 in the same complex was relocated and reopened as Alex Sports 沖浜店 (Tokushima, Tokushima).」

「In light of the impact of the COVID-19 pandemic and conditions in nearby markets, the Group closed Plaza Alex ブランチ大津京 in December 2022, Alex Comfort イコットニコット岡山 in June 2023, and Alex Sports 脇町店 and Alex Sports 川内店 in July 2023. For Charlie 小松島店, the Group compared the future cash flows from current operations with those that would result from conversion to a real estate leasing business, determined that conversion was more rational, and converted the store to a real estate leasing business in January 2023.」

「At Charlie 小松島店 (Komatsushima, Tokushima), the Group compared the future cash flows from current operations with those that would result from conversion to a real estate leasing business, determined that conversion was more rational, and converted the store to a real estate leasing business in January 2023.」

「In October 2022, the company opened Alex Comfort Kishiwada Kankan Bayside Mall (Kishiwada City, Osaka Prefecture), selecting items suited to a comprehensive lifestyle encompassing clothing, food and housing. In November of the same year, it renovated Charlie Southern Mall Rokko (Nada-ku, Kobe) as a hybrid-format store, newly incorporating lifestyle elements such as greenery-focused kitchen goods, apparel and food products in addition to sophisticated cosmetics.」

「In March 2022, at Charlie Rainbow Road (Takamatsu, Kagawa), the Group carried out a full renovation of the store's interior and exterior and reopened it as a hybrid-format store. In addition to trend-focused cosmetics, medicines and daily necessities centered on beauty and health, the renovated store newly incorporated lifestyle elements such as select household goods and interior products. In the same month, it opened Alex Comfort オアシス21 (Higashi-ku, Nagoya), a select shop offering domestic and international cosmetics and household goods designed to make everyday life more enjoyable and beautiful. In April, it opened Aoyama WHISKY Established in 2022, carrying more than 500 varieties of domestic and international whisky, including many hard-to-source whiskies and duty-free-only products.」

「At Charlie Rainbow Road (Takamatsu, Kagawa), the Group carried out a full renovation of the store's interior and exterior and reopened it on 4 March 2022 as a hybrid-format store. In addition to trend-focused cosmetics, medicines and daily necessities centered on beauty and health, the renovated store newly incorporated lifestyle elements such as select household goods and interior products.」

「In October of that year, the Group opened Ashiya WHISKY (Ashiya, Hyogo), a whisky specialist store carrying approximately 1,000 varieties of whisky from around the world, including Scotch.」

「In May of that year, at Charlie Branch Otsukyo (Otsu, Shiga), the Group expanded its new product range, including novelty stationery, a general-goods section, and outdoor and leisure sections under the theme of adding reliability to low prices, changing its store brand and reopening as Charlie DS Branch Otsukyo.」

「In May 2021, Alex Comfort ウッディタウン (Sanda, Hyogo) expanded its apparel and kitchen-tool range and introduced distinctive local food products, changing its store brand and reopening as Life Style laboratory Plaza Alex Woody Town under the concepts of proposing new lifestyles and helping customers discover their own favorites. In the same month, Charlie Branch Otsukyo (Otsu, Shiga) expanded its new product range, including novelty stationery, a general-goods section, and outdoor and leisure sections under the theme of adding reliability to low prices, changing its store brand and reopening as Charlie DS Branch Otsukyo.」

「In December 2020, the Group opened Alex Comfort 星が丘テラス (Chikusa-ku, Nagoya), a select shop offering domestic and international cosmetics and household goods designed to make everyday life more enjoyable and beautiful. In the same month, it opened Motomachi WHISKY (Chuo-ku, Kobe), a specialist store carrying approximately 1,500 varieties of whisky and spirits, from standard domestic and international products to hard-to-find premium whiskies. Meanwhile, due in part to reduced foot traffic in city centers following the spread of COVID-19, Alex Comfort NU Chayamachi Plus (Kita-ku, Osaka) was closed in January 2021.」

「In November 2020, Outrex Okinama (Tokushima City, Tokushima Prefecture) relocated to the facility housing Decor Kawauchi and Charlie Kawauchi (Tokushima City, Tokushima Prefecture), reopening as Outrex Kawauchi. In addition to the outlet products previously handled, it substantially expanded its lineup of products from popular Japanese outdoor gear brands that propose an outdoor lifestyle rooted in Japan’s climate and culture. As a manufacturer-certified limited-format store, it reopened with an assortment intended to serve a broader range of customers.」

「The Group opened Plaza Alex 大津京 (Otsu, Shiga) under the concept of a store where customers can discover new lifestyle ideas and their own personal favorites. In the same month, Alex Comfort アスナル金山 (Naka-ku, Nagoya) became the Group's first store in Aichi Prefecture, offering mainly fragrances, imported and domestic cosmetics, accessories, nail products and foot-care products, allowing each customer to freely, enjoyably and easily select products for their own vision of total beauty.」

「In addition to converting the site of Decor 沖浜店 to a real estate business, the Group transferred some product categories to a newly established complex developed near the adjacent head office building and reopened the store in March 2020, during the third quarter of the consolidated fiscal year, as Decor GREEN・earth café and GoGoBIKE.」

「In November of the same year, the company opened Charlie Branch Otsukyo (Otsu City, Shiga Prefecture), offering a broad range of products, from fashionable items to everyday necessities, including cosmetics and beauty goods, health foods, pharmaceuticals, household goods and baby products, under the themes of “beauty,” “health” and “refinement.” In particular, it offered an exceptional selection of cosmetics sourced from Japan and overseas, creating an enjoyable shopping experience and a comfortable space.」

「In September 2018, Our Liquor 沖浜店 was renovated as a specialist imported-liquor store with an expanded selection of whisky, wine and spirits. Beer, sake and shochu formerly carried at that store were transferred to Decor 沖浜店 in the same Okihama area. In the same month, Charlie Rainbow Road added alcoholic beverages and food through a sales-floor renovation.」

「In April 2019, at Charlie 阿南店 (Anan, Tokushima), the Group renovated the sales areas for drug-related products centered on cosmetics, food, alcoholic beverages and baby products, and carried out a further expansion of its product range. In the same month, it opened Charlie 川内店 <TOKUSHIMA AIRPORT> (Itano, Tokushima) in the domestic departure waiting area of Tokushima Awa Odori Airport, selling cosmetics, stationery, food and Tokushima souvenirs. In May of that year, Charlie 沖浜店 (Tokushima, Tokushima) also underwent a major renovation of its interior and fixtures. The main aisle from the front entrance to the back was widened, and an event space using display fixtures for product proposals was installed in the center, creating a store with a greater sense of space and openness.」

「In addition to the cosmetics, medicines, daily necessities and baby products normally carried by Charlie stores, the store now offers interior goods, kitchen accessories, kitchen appliances, wine and food, further broadening its range of proposals.」

「In October 2018, Charlie 小松島店 (Komatsushima, Tokushima) and the adjacent Our Liquor 小松島店 (Komatsushima, Tokushima) were consolidated and renovated into a hybrid-format store that leverages the strengths of both stores, including their respective drug and cosmetics, and alcoholic beverage and food categories.」

「Including these measures, the Group recorded extraordinary losses of ¥67 million in impairment losses, ¥56 million in losses on termination of leases and ¥7 million in store closure losses due to the closure of 3 stores and consolidation of 1 store, among other measures.」

「In addition, in the same month, Alex Comfort 高松丸亀町グリーン店 (Takamatsu, Kagawa) was renovated into a hybrid-format store with a larger sales area. The food-related offerings of alcoholic beverages and food were added to the household goods already carried, while cosmetics and hair-care products and other beauty-related offerings from the adjacent Charlie 高松丸亀町グリーン店 were transferred and the two stores were consolidated, increasing synergies.」

「Specifically, in September 2017, at Alex Comfort 神戸北店 (Kita-ku, Kobe), the Group renovated the store by replacing display fixtures in strong-performing categories with taller metal-rack fixtures to improve sales efficiency per unit of floor area, introducing apparel, outdoor products and vintage furniture as new categories, and changing the interior flooring to wood-grain materials designed to create a clean, premium feel.」

「In June of that year, the Group simultaneously opened two stores in Chuo-ku, Kobe: Charlie ブルメールHAT神戸店, a beauty lifestyle store offering a broad range of fragrances, cosmetics and other products for enjoying a comfortable lifestyle; and Home Keeper Decor ブルメールHAT神戸店, a hybrid store offering a wide lineup including household goods, consumables, DIY products, outdoor goods, alcoholic beverages, domestic and imported food, and confectionery, in addition to the household goods traditionally carried by Home Keeper stores.」

「In April of that year, the Group opened Alex Comfort ピエリ守山 (Moriyama, Shiga), offering a broad hybrid product range centered on household goods, food, alcoholic beverages and cosmetics under the theme of coordinating a complete lifestyle from work to leisure in one's own way.」

「The Group opened Alex Comfort NU Chayamachi Plus (Kita-ku, Osaka) and began operating GoGo CAMP (Gogo Camp) inside Decor 川内店 (Tokushima, Tokushima), offering a wide range of full-scale camping gear, apparel and bags to enhance the outdoor lifestyle experience.」

「During the consolidated fiscal year, the Group made capital investments of ¥135 million, including investments in 4 new stores and renovations to 1 existing store.」

「However, to secure sustainable growth, we will place emphasis on capital efficiency, avoid excessive expansion that would strain the business, and open stores in the optimal format after considering the market potential of planned locations and local characteristics.」