Improving the profitability of existing stores and increasing the efficiency of new openings
First written in FY2016. 15 of 35 entries say "Advanced", first in FY2017-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2025: 3 of 31 companies on the "Worse" side.
22 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The group has designated the fiscal year ending June 2027 as a year for improving store profitability and establishing a foundation for sustainable growth, and will address the following challenges.」
The fiscal year ending June 2027 was identified as a year for improving store profitability and establishing a growth base, with cost optimisation, higher inventory turnover, stronger after-sales service, and specific decisions regarding store openings, withdrawals and consolidation organised as key challenges. - FY2026-H1AdvancedAnnual report
「Against the backdrop of improved earnings at consolidated subsidiaries acquired through M&A in the previous consolidated fiscal year, gross profit increased 7.1% year on year to ¥6,157 million.」
Improved earnings at consolidated subsidiaries acquired through M&A in the previous fiscal year contributed to the increase in gross profit. The company specifically described the results of its existing initiative to improve profitability after M&A. - FY2025AdvancedAnnual report
「SG&A expenses increased 34.5% from the previous fiscal year to ¥10,582 million due to one-off expenses, including costs related to the special investigation conducted in the first quarter of the consolidated fiscal year, as well as higher personnel, selling, store operating and store facility-related expenses accompanying business expansion. However, the increase in gross profit resulting from higher revenue absorbed these costs, and operating profit increased 23.5% to ¥1,849 million.」
SG&A expenses increased 34.5% due to business expansion and one-off expenses, but the increase in gross profit absorbed the higher costs, resulting in a 23.5% increase in operating profit. - FY2025-H1Mid-year revenue and profit increased, but expenses also roseAnnual report
「Consolidated revenue increased 79.4% year on year to ¥41,058 million, while gross profit increased 32.4% to ¥5,748 million. SG&A expenses increased 35.7% year on year to ¥5,062 million due to business expansion.」
M&A and business expansion increased revenue and gross profit, while SG&A expenses rose 35.7%. Unlike the full-year profitability challenges seen previously, operating profit for the interim period also increased 12.2% year on year. - FY2024Full-year gross margin recovery, but operating profit declinedAnnual report
「For new vehicles, the cost ratio rose due to higher selling prices and lower sales incentives resulting from sluggish unit sales. In vehicle servicing, the cost ratio rose due to higher manufacturing costs, including labour costs. However, the gross margin on used-vehicle sales improved as the used-vehicle market stabilised, resulting in a 0.1-percentage-point increase in overall gross margin from the previous fiscal year to 19.6%.」
Gross margin improved from 19.5% in the previous fiscal year to 19.6% as the used-vehicle market stabilised, while operating profit declined 20.0% year on year due to higher SG&A expenses. - FY2024-Q3Margin decline continuedAnnual report
「For vehicle sales, the cost ratio rose due to lower sales incentives resulting from sluggish growth in new-vehicle unit sales and higher selling prices. For vehicle servicing, the cost ratio rose due to higher manufacturing costs, including labour costs. As a result, gross margin declined 1.2 percentage points to 19.0%, but gross profit increased 5.4% year on year to ¥6,664 million as revenue rose.」
Sluggish new-vehicle unit sales, the higher cost ratio associated with increased selling prices and servicing labour costs resulted in a 1.2-percentage-point year-on-year decline in gross margin to 19.0%. Gross profit, however, increased 5.4%. - FY2024-Q2Margin decline continued year on yearAnnual report
「The cost ratio rose due to higher costs associated with responding to fluctuations in the used-vehicle market and increased manufacturing costs, including mechanics' labour costs. As a result, gross margin declined 1.2 percentage points to 19.0%, but gross profit increased 4.0% year on year to ¥4,341 million as revenue rose.」
The cost ratio increased due to measures to address fluctuations in the used-vehicle market and higher mechanics' labour costs, among other factors, resulting in a 1.2-percentage-point year-on-year decline in gross margin to 19.0%. Gross profit, however, increased 4.0%. - FY2024-Q1Quarterly margin decline continuedAnnual report
「Gross margin declined 2.4 percentage points to 18.5%. Used-vehicle cost ratios rose as the surge in the used-vehicle market caused by the new-vehicle shortage in the prior-year period normalised, while the cost ratio also increased due to higher new-vehicle sales and higher pre-delivery servicing costs. However, gross profit increased 2.5% year on year to ¥2,099 million as revenue rose.」
The normalisation of the used-vehicle market and higher pre-delivery servicing costs resulted in a 2.4-percentage-point year-on-year decline in gross margin to 18.5%. Gross profit, however, increased 2.5%. - FY2023Full-year margin decline and profitability challenges continuedAnnual report
「Gross margin declined 1.7 percentage points from the previous fiscal year to 19.5%, but gross profit increased 2.1% to ¥8,622 million as revenue rose.」
Revenue and gross profit increased, but gross margin declined to 19.5% due to higher new-vehicle selling prices and valuation losses on used vehicles. Improving the profitability of existing stores remains an ongoing challenge. - FY2023-Q3Quarterly profitability continued to deteriorateAnnual report
「Gross profit declined 1.2% year on year to ¥6,320 million as the cost of sales increased due to higher new-vehicle selling prices and the normalisation of used-vehicle selling prices. Gross margin also declined 1.4 percentage points to 20.3%.」
Higher new-vehicle selling prices and the resulting increase in the cost of sales, together with the normalisation of used-vehicle selling prices, led to a 1.2% year-on-year decline in gross profit and a 1.4-percentage-point decline in gross margin to 20.3%. - FY2023-Q1Quarterly profitability deterioratedAnnual report
「Gross profit declined 0.9% to ¥2,048 million due to the impact of lower new-vehicle revenue and higher purchase costs resulting from the buoyant used-vehicle market, among other factors.」
Gross profit in the first quarter declined 0.9% year on year due to lower new-vehicle revenue and higher used-vehicle purchase costs. - FY2022AdvancedAnnual report
「In terms of profit, thorough efforts to sell at appropriate prices and implement initiatives contributing to profit resulted in gross profit increasing 2.3% from the previous fiscal year to ¥8,441 million, while gross margin rose 1.0 percentage point to 21.3%. SG&A expenses increased 1.8% from the previous fiscal year to ¥6,075 million, due to higher personnel expenses and rents accompanying business expansion, improvements to store facilities and higher depreciation expenses following the installation of charging infrastructure for the transition to EVs. As a result, operating profit increased 3.3% to ¥2,366 million, and the operating margin reached a record high of 6.0%.」
Measures to improve profitability, including sales at appropriate prices, resulted in a gross margin of 21.3% and a record-high operating margin of 6.0%. The group absorbed higher SG&A expenses associated with business expansion and EV-related facilities, confirming improved profitability in existing businesses for the full fiscal year. - FY2022-Q3AdvancedAnnual report
「Due in part to the increased proportion of sales of high-priced vehicles and continued efforts to improve margins, gross profit increased 5.6% year on year to ¥6,397 million, while gross margin rose 1.2 percentage points to 21.6%.」
The higher sales mix of high-priced vehicles and continued efforts to improve margins resulted in a 5.6% year-on-year increase in gross profit and a 1.2-percentage-point rise in gross margin to 21.6%. Further progress in improving the profitability of existing businesses was confirmed. - FY2022-Q2AdvancedAnnual report
「Due in part to the increased proportion of sales of high-priced vehicles and continued efforts to improve margins, gross profit increased 5.4% year on year to ¥4,321 million, while gross margin rose 1.0 percentage point to 21.6%.」
The increased proportion of high-priced vehicle sales and efforts to improve margins led to a 5.4% year-on-year increase in gross profit and a 1.0-percentage-point rise in gross margin to 21.6%. - FY2021AdvancedAnnual report
「Travel and transportation expenses and training costs declined because most meetings and training sessions were conducted online to prevent the spread of COVID-19. In addition, we improved operating efficiency and worked to eliminate waste by digitising documents and reviewing existing workflows. As a result, the SG&A ratio declined 1.6 percentage points from the previous fiscal year to 14.6%.」
Operating efficiency improved through online meetings and training, document digitisation and workflow reviews, resulting in a 1.6-percentage-point decline in the SG&A ratio from the previous fiscal year to 14.6%. - FY2021-Q3AdvancedAnnual report
「Due in part to the continued increase in the proportion of used-vehicle sales, which have a low cost ratio, and ongoing efforts to improve margins, gross margin rose 0.9 percentage points to 20.3%, while gross profit increased 16.5% year on year to ¥6,057 million.」
The company continued to benefit from a higher proportion of used-vehicle sales and efforts to improve margins, with gross margin rising 0.9 percentage points to 20.3% and gross profit increasing 16.5% year on year. - FY2021-Q2AdvancedAnnual report
「Due in part to the increased proportion of used-vehicle sales, which have a relatively low cost ratio, and continued efforts to improve margins, gross profit increased 15.2% year on year to ¥4,101 million, while the gross margin rose 0.8 percentage points to 20.6%.」
The increase in the proportion of used-vehicle sales and efforts to improve margins led to a 15.2% year-on-year increase in gross profit and a 0.8-percentage-point rise in the gross margin. - FY2020RestatedAnnual report
「The group positions M&A as one of the pillars of its growth strategy, but investments to acquire shares or businesses are considered upfront investments until they are recovered through earnings from the stores or businesses acquired. While these investments are being recovered, the group must improve the profitability of existing stores in order to continue growing. To this end, we will work to eliminate waste, increase the turnover of assets such as inventory and make maximum use of management resources.」
Continued efforts to improve profitability by increasing asset turnover at existing stores, eliminating waste and making effective use of management resources. - FY2020-Q1AdvancedAnnual report
「As a result of ongoing efforts to use management resources more efficiently in day-to-day operations, the SG&A ratio declined by 2.9 percentage points year on year.」
The company explained that ongoing efforts to use management resources efficiently resulted in a 2.9-percentage-point year-on-year decline in the SG&A ratio. - FY2019RestatedAnnual report
「Specifically, we will improve capital efficiency by increasing inventory turnover. We will also optimise staff allocation through the movement of personnel within the group, while further improving productivity by reviewing and improving each employee's work processes.」
Specific measures to improve the profitability of existing dealerships were reiterated, including higher inventory turnover, personnel mobility and optimal allocation, and process improvements. - FY2018RestatedAnnual report
「The group continued to focus on expanding its business not only through vehicle sales but also through ancillary businesses such as vehicle servicing and non-life insurance agency operations, while pursuing greater efficiency through further cost reductions and optimised staff allocation.」
Continued expansion of ancillary businesses, cost reductions and efficiency improvements through optimised staff allocation. - FY2018-Q2RestatedAnnual report
「The group continued to focus on expanding its business not only through vehicle sales but also through ancillary businesses such as vehicle servicing and non-life insurance agency operations, while pursuing greater efficiency through further cost reductions and optimised staff allocation.」
Continued expansion of ancillary businesses, cost reductions and efficiency improvements through optimised staff allocation. - FY2018-Q1RestatedAnnual report
「The group continued to focus on expanding its business not only through vehicle sales but also through ancillary businesses such as vehicle servicing and non-life insurance agency operations, while pursuing greater efficiency through further cost reductions and optimised staff allocation.」
Continued efficiency improvements through cost reductions and optimised staff allocation. - FY2017RestatedAnnual report
「We will rationalise and expand existing businesses by continuously carrying out detailed and strategic analysis and evaluation of new store openings and existing store withdrawals across the group.」
The company stated that it would continue to rationalise and expand existing businesses through analysis and evaluation of new store openings and existing store withdrawals. - FY2017-Q3RestatedAnnual report
「The group continued to focus on expanding its business not only through vehicle sales but also through ancillary businesses such as vehicle servicing and non-life insurance agency operations, while pursuing greater efficiency through further cost reductions and optimised staff allocation.」
The company stated that it continued to improve efficiency through cost reductions and optimised staff allocation. - FY2017-Q2RestatedAnnual report
「The group continued to focus on expanding its business not only through vehicle sales but also through ancillary businesses such as vehicle servicing and non-life insurance agency operations, while pursuing greater efficiency through further cost reductions and optimised staff allocation.」
The company stated that it continued to improve efficiency through cost reductions and optimised staff allocation. - FY2017-Q1AdvancedAnnual report
「Regarding JEEP Yokohama, operated by consolidated subsidiary チェッカーモータース株式会社, we had been considering relocation because of the ageing facilities and other factors. However, due to rising rents and construction costs in the Yokohama area, we determined that recovering the investment in a new location would be difficult and withdrew from the business in July 2016.」
For JEEP Yokohama, the company determined that recovering the relocation investment would be difficult given higher rents and construction costs, and withdrew in July 2016. This demonstrated a specific decision and action regarding the efficiency of store investment. - FY2016First statedAnnual report
「As the group generally limits investment to operating cash flow, improving the profitability of existing dealerships is essential to future business expansion. To this end, we will further improve productivity by optimising staff allocation through the movement of personnel within the group.」
The policy is to invest within operating cash flow and improve existing dealerships through staff allocation and productivity gains.