Development of new business formats, brands, stores and products

「This business combination is intended to incorporate the established strong brand value and customer base in the Kansai region, thereby strengthening our business foundation and accelerating growth.」

「In Thailand, World Saha (Thailand) Co.,Ltd., established as a joint venture with the Saha Group in January 2025, opened RAGTAG’s first and second overseas stores in Bangkok in July and September 2025, respectively. In Taiwan, it opened petit main’s first overseas store jointly with ㈱ナルミヤ・インターナショナル in March 2025, followed by RAGTAG’s third overseas store in November. In Hong Kong, it opened petit main’s second and third overseas stores in September and November 2025, respectively, through a distributor.」

「In Thailand, World Saha (Thailand) Co.,Ltd., established as a joint venture with the Saha Group in January 2025, opened RAGTAG’s first overseas store in Bangkok on 16 July 2025 and its second store on 12 September 2025. In Taiwan, the company jointly opened petit main’s first overseas store with ㈱ナルミヤ・インターナショナル on 27 March 2025, and opened its second overseas store in Hong Kong on 4 September 2025.」

「For mid- to lower-market brands primarily developed in shopping centers, the consolidation of the shopping-center-focused mid- to lower-market business into a single company in the cumulative first quarter of the previous consolidated fiscal year has paid off, and profitability is improving through the pursuit of economies of scale arising from horizontal integration. In addition, from the cumulative first quarter of the current consolidated fiscal year, we have established a structure to further promote direct importing by integrating the product-procurement teams, while working to improve store operations and strengthen store development to achieve a net increase in store numbers. We have also launched a new-format development project as part of a new growth initiative.」

「Against the backdrop of the progression toward channel-free retail, from the cumulative first quarter of the current consolidated fiscal year we have consolidated the shopping-center-focused mid- to lower-market business into a single company and are also pursuing economies of scale. This is an area in which national brands (NBs) have traditionally been strong, but against the backdrop of business expansion, we will also take on the challenge of developing original products based on our own planning.」

「In addition, we will continue opening domestic lifestyle-brand stores and franchise stores, primarily targeting neighborhood shopping centers (NSCs), where close ties to local communities are important, while making maximum use of the Group’s apparel planning and development capabilities and store-management expertise. We will also renovate stores as part of efforts to enhance the value of the customer experience in stores.」

「In addition, to further expand the scale of the business, we have begun a full-scale growth strategy for e-commerce sales in the general merchandise field.」

「In the brand business, we have positioned lifestyle-goods formats as a growth area and are continuing to strengthen investment in e-commerce, new store openings and renovations.」

「For mid- to lower-market brands primarily developed in shopping centers, as the boundary between regular-price sales months and sale months has gradually disappeared in recent years, we will view the product life cycle from procurement through the end of the sales period as shorter than before, without being constrained by the traditional broad spring/summer and fall/winter seasons. By planning to enhance the freshness of store merchandise every month, we will create stores that always offer new discoveries to customers who visit frequently.」

「Against this backdrop, in the brand business, the lifestyle-goods formats “one’s terrace” and “212 KITCHEN STORE” increased earnings by accurately capturing demand for spending at home, while the brand “Laura Ashley,” launched newly this spring, made a strong start.」

「Meanwhile, lifestyle-goods formats that performed well by enriching how people spent time at home during the COVID-19 pandemic stood out. “one’s terrace,” which carries a wide variety of lifestyle goods, and “212 KITCHEN STORE,” which successfully captured demand for eating at home, maintained sales above the level of the same period of the previous year, excluding periods when stores were closed. The brand business is investing in lifestyle-goods formats as a growth area.」

「In November, we made Laxus Technologies Inc. a subsidiary. The company operates a subscription-based rental and sharing service specializing in luxury brand handbags.」

「In August, we established ㈱アンドブリッジ, an equity-method affiliate, as a joint venture with ㈱ゴードン・ブラザーズ・ジャパン, a professional firm specializing in movable assets, to develop a new format of off-price stores. We opened its first store in Nishi-Omiya, Saitama Prefecture, in September.」

「Specifically, in April we made Original Inc., the U.S. operator of the online custom-shirt brand “Original Stitch,” a subsidiary, expanding our online custom-shirt portfolio and customization platform using sizing technology. In June, through our subsidiary ㈱ワールドインベストメントネットワーク, we made 神戸レザークロス㈱ a subsidiary to expand our footwear portfolio and develop a footwear customization business in the future.」

「The number of franchisees had expanded to 27 corporate entities and 69 stores as of the end of the fiscal year ended March 2019.」

「In the brand business, we launched “UNBUILT TAKEO KIKUCHI,” a men’s brand for the next generation of business professionals that provides one-stop services ranging from made-to-order products to fashion rental and storage services for clothing. We also began developing a new business model using the digital business platform.」

「We will continue to pursue the establishment of a competitive advantage in brand value.」

「In local small-trade-area markets centered on neighborhood shopping centers (NSCs) and community shopping centers (CSCs), the company opened both directly operated stores and franchise stores operated by 株式会社ワールドフランチャイズシステムズ, and business remained firm.」

「We aim for sustainable growth by developing new business formats, brands, stores, and products while constantly assessing changes in consumer preferences, markets, and channels.」