Intra-group Reorganization and Renovation of Retail Stores

「In October of the same year, with the aim of reducing logistics costs over the long term by bringing logistics operations in-house using our own resources and improving operational efficiency, we converted Charlie Aizumi store (Itano-gun, Tokushima Prefecture), which had closed in August of the same year, into our own logistics center responsible for deliveries to each store and for EC sales, and began operations.」

「In addition, with the aim of reducing logistics costs over the long term by bringing logistics operations in-house using our own resources and improving operational efficiency, we closed Charlie Aizumi store (Itano-gun, Tokushima Prefecture), converted it into our own logistics center responsible for deliveries to each store and for EC sales, and began operations.」

「As a specific initiative, 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. Meanwhile, in March of the same year, it closed “Alex Comfort Ikora Mall Izumisano” (Izumisano City, Osaka Prefecture).」

「As specific initiatives, in December 2023 the チャーリー沖浜店 store in Tokushima, Tokushima, was refurbished to expand its range of cosmetics, including products from domestic brands, overseas luxury brands and fragrances. Meanwhile, アレックスコンフォート星が丘テラス was closed, and the アワーリカー藍住店 store in Itano, Tokushima, was closed in January 2024 after the company compared current earnings with projected future cash flows if it were converted to a real estate rental business and determined that the conversion was more rational.」

「In September 2023, the チャーリー川内店 store in Tokushima, Tokushima, was refurbished to enhance its cosmetics range, and the cycle shop ＧｏＧｏＢＩＫＥ at the mixed-use facility ＹＡＭＡＳＨＩＲＯ ＴＥＲＲＡＣＥ in Tokushima, Tokushima, was relocated to the デコール川内店 store in Tokushima, Tokushima. The store was also refurbished with a new range of outdoor products to propose cycle camping. In the same month, the outdoor shop 好日山荘徳島山城店 at the same mixed-use facility was relocated and reopened after refurbishment as the アレックススポーツ沖浜店 store in Tokushima, Tokushima.」

「As a specific initiative, following the shift to individual discretion as the basic approach to wearing masks as a COVID-19 countermeasure, the company renovated Alex Comfort Takamatsu Marugamemachi Green (Takamatsu City, Kagawa Prefecture) in April 2023 for the “post-mask” era, including by expanding the sales area for makeup-related products and trend cosmetics.」

「The プラザアレックスブランチ大津京 store in Otsu, Shiga, was closed in December 2022 in view of the effects of the spread of COVID-19 and the conditions of the surrounding market. At the チャーリー小松島店 store in Komatsushima, Tokushima, the company compared current earnings with projected future cash flows if the business were converted to a real estate rental business, determined that the conversion was more rational and converted the business in January 2023.」

「In November of the same year, チャーリーサザンモール六甲店 (Nada-ku, Kobe) reopened after renovation as a hybrid-format store incorporating new lifestyle elements, including high-sensitivity cosmetics, kitchen goods centered on greenery, apparel and food products.」

「In the same month and year, the チャーリー鴨島店 store in Yoshinogawa, Tokushima, the チャーリー佐古店 store in Tokushima, Tokushima, and the チャーリー藍住店 store in Itano, Tokushima, expanded their food sales floors and were refurbished to enhance their ranges of kitchen and interior products suited to customers' lifestyles, including attractively packaged imported confectionery and selected confectionery. The チャーリーレインボーロード店 store in Takamatsu, Kagawa, also undertook a full refurbishment of its interior and exterior.」

「In September 2021, the チャーリー沖浜店 store expanded its food sales floor and product range, including attractively packaged imported confectionery and selected ingredients, and was refurbished with tall metal fixtures. In October of the same year, the チャーリーウッディタウン店 store in Sanda, Hyogo, and in November, the チャーリー丸亀店 store in Marugame, Kagawa, also expanded their food sales floors and were refurbished to enhance their ranges of kitchen and interior products suited to customers' lifestyles.」

「In April of the same year, the company opened 青山ＷＨＩＳＫＹ in Shibuya, Tokyo, a malt bar specializing in more than 300 types of whisky, including domestic and imported whiskies and old bottles no longer in production.」

「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.」

「As specific initiatives, in December 2020 the company opened アレックスコンフォート星が丘テラス in Chikusa Ward, Nagoya, offering selected cosmetics from Japan and overseas and lifestyle goods designed to make everyday life more enjoyable and beautiful. In the same month, it opened 元町ＷＨＩＳＫＹ in Chuo Ward, Kobe, a specialty store offering approximately 1,500 types of whisky and spirits, ranging from standard products from Japan and overseas to premium whiskies that are difficult to obtain. Meanwhile, in January 2021, the company closed アレックスコンフォートＮＵ茶屋町プラス in Kita Ward, Osaka, due in part to reduced foot traffic in city centers resulting from the spread of COVID-19.」

「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.」

「During the nine-month consolidated period under review, the チャーリー阿南店 store was closed in October 2019, followed by the デコール沖浜店 store in December of the same year. In addition to converting the デコール沖浜店 site to a real estate business, some product categories were relocated to the mixed-use facility ＹＡＭＡＳＨＩＲＯ ＴＥＲＲＡＣＥ, newly built in March 2020 near the adjacent head office building, and the stores reopened under the names デコールＧＲＥＥＮ・earth café and ＧｏＧｏＢＩＫＥ.」

「The チャーリー阿南店 store in Anan, Tokushima, was closed in October 2019, followed by the デコール沖浜店 store in Tokushima, Tokushima, in December of the same year. In addition to converting the デコール沖浜店 site to a real estate business, some product categories were relocated to a new mixed-use facility developed near the adjacent head office building, and …the stores reopened under the new formats 「デコールＧＲＥＥＮ・earth café」 and 「ＧｏＧｏＢＩＫＥ」」

「As part of structural reform resulting from changes to certain businesses described above, the チャーリー阿南店 store in Anan, Tokushima, was closed in October 2019 during the first quarter of the consolidated period under review.」

「In April 2019, the チャーリー阿南店 store underwent a sales-floor refurbishment focused on cosmetics and drugstore products, food, alcoholic beverages and baby products. In the same month, チャーリー川内店＜ＴＯＫＵＳＨＩＭＡ　ＡＩＲＰＯＲＴ＞ opened in the passenger waiting area of Tokushima Awaodori Airport, selling cosmetics, stationery, food and souvenirs from Tokushima, among other items.」

「In April 2019, the チャーリー阿南店 store in Anan, Tokushima, underwent a sales-floor refurbishment focused on cosmetics and drugstore products, food, alcoholic beverages and baby products, together with an expansion of its product range.」

「In the same month and year, part of the existing デコール川内店 store in Tokushima, Tokushima, was refurbished and opened as the チャーリー川内店 store.」

「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 January 2018, the 文具館チャーリー沖浜店 store in Tokushima, Tokushima, was refurbished, including the installation of a reading space and a new book section where customers could take their time selecting books. In February 2018, the アワーリカー沖浜店 store in Tokushima, Tokushima, was also refurbished, including the installation of tall metal fixtures to further expand the food selection, such as attractively packaged imported foods, and the addition of sake cellars to create a premium atmosphere and manage temperatures.」

「In November 2017, the デコールブルメールＨＡＴ神戸店 store in Chuo Ward, Kobe, was refurbished, including product replacement and changes to the category layout, such as expanding the range of general cosmetics and daily necessities, which are essential household items, to increase customer traffic.」

「In April 2016, the 3 stores held by ＡＣリアルエステイト were transferred to アクサス and reopened after refurbishment.」

「Of the retail stores held by group companies, 3 stores were reorganized within the group and refurbished. This enabled more effective use of shared infrastructure, including point cards, and the timely transfer of products.」