Product Mix and Regional Sales Initiatives in Food Distribution Stores

「As all shares held in Bon Sante Co., Ltd. were transferred on 1 July 2024, the company was excluded from the scope of consolidation from the interim consolidated accounting period.」

「Sales exceeded the previous year because sales for April 2023 at the meat-wholesale division launched in May 2022 and sales from April to June 2023 at the Gyomu Super Kasukabe Toyomachi store, opened in July 2022, were included. Broad price increases for food, beverages and alcoholic beverages also contributed to higher sales, while Gyomu Super continued to sell at more competitive prices than ordinary supermarkets. Continued efforts since the first quarter to improve gross profit in produce and meat also contributed to higher profit. By division, the Gyomu Super division recorded segment profit, or operating profit, of ¥568 million, up 17.5% year on year, while the meat-wholesale division recorded a segment loss, or operating loss, of ¥52 million, compared with a segment loss of ¥25 million in the previous year. As a result, sales were ¥11,696 million, up 7.9% year on year, and segment profit, or operating profit, was ¥516 million, up 14.8%.」

「The ongoing efforts since the first quarter to improve gross profit in the produce and meat divisions of the Gyomu Super business produced results, and profit increased year on year. By division, the Gyomu Super division recorded segment profit, or operating profit, of ¥352 million, up 18.5% year on year.」

「Sales exceeded the previous year because sales for April 2023 at the meat-wholesale division launched in May 2022 and sales from April to June 2023 at the Gyomu Super Kasukabe Toyomachi store, opened in July 2022, were included. Sales also benefited from broad price increases for food and beverages, while Gyomu Super continued to sell at more competitive prices than ordinary supermarkets. Although utilities continued to rise, improved gross profit in the produce and meat divisions of the priority Gyomu Super business contributed to higher profit. As a result, sales were ¥3,822 million, up 11.3% year on year, and segment profit, or operating profit, was ¥188 million, up 4.3%.」

「Sales at Gyomu Super, excluding the Kasukabe store opened in July 2022, increased by ¥123 million year on year, reflecting the focus on produce and meat. However, higher overall expenses following the minimum-wage increase and price hikes, particularly the sharp rise in utilities, had a significant impact, reducing operating profit by ¥127 million.」

「At the business, sales exceeded the previous year, partly because the meat-wholesale business begun in May 2022 contributed, but profit declined because selling, general and administrative expenses, including utilities, depreciation and repairs, increased substantially. As a result, sales were ¥7,007 million, up 18.4% year on year, and segment profit, or operating profit, was ¥283 million, down 18.2%.」

「During the nine-month period ended 31 December 2021, sales were broadly flat year on year, but profit declined because extensive renovation work, exceeding the original plan, was carried out from June to July 2021, increasing depreciation and utility costs above expectations, while repair expenses also rose because some equipment had aged. As a result, sales were ¥9,013 million, up 1.2% year on year, and segment profit, or operating profit, was ¥544 million, down 6.6%.」

「During the six-month period ended 30 September 2021, sales were broadly flat year on year, but profit declined because extensive renovation work, exceeding the original plan, was carried out from June to July 2021, increasing depreciation and utility costs above expectations, while repair expenses also rose because some equipment had aged.」

「In June 2021, we renovated the meat and produce selling areas and established new seafood sections at 13 stores. We expect the benefits of these initiatives to emerge in earnest from July 2021 onward.」

「By around July 2021, we aim to renovate the meat and produce selling areas and establish new seafood sections at existing stores, with the aim of significantly increasing sales and profit.」

「The benefits of focusing on meat and produce merchandising from October through December began to emerge, with segment profit, or operating profit, of ¥202 million. As a result, cumulative sales were ¥8,903 million, up 14.0% year on year, and segment profit, or operating profit, was ¥577 million, up 32.6%.」

「At the business, customer traffic increased because demand for home dining rose as people refrained from going out and school closures halted school meals amid the spread of COVID-19. Sales and profit have grown since around February 2020, but sales growth began to normalize after June. Segment profit, or operating profit, was ¥221 million in April–June compared with ¥153 million in July–September. As a result, sales were ¥5,940 million, up 16.7% year on year, and segment profit, or operating profit, was ¥374 million, up 53.0%.」

「As a result, sales were ¥3,145 million, up 24.4% year on year, and segment profit, or operating profit, was ¥221 million, up 24.4%. To continue securing sales and profit, we will expand the selling space for high-gross-margin products such as meat and vegetables and build store environments that avoid missed sales opportunities.」

「At the business, renovations of all stores initiated in the fiscal year ending March 2018 were completed, creating a generally favorable operating environment. Despite strong consumer cost-consciousness, increased media exposure for private-label products and a broader fresh-food range further raised awareness of Gyomu Super and customer traffic. Higher dwell time and average spending per purchase also created synergies, and sales and profit remained strong across all stores throughout the period. As a result, sales were ¥10,635 million, up 10.8% year on year, and segment profit, or operating profit, was ¥560 million, up 25.4%.」

「Although depreciation increased because of renovation work at six major stores carried out in the previous fiscal year, sales and profit remained strong, helped by successful customer acquisition through a new price-promotion campaign for alcoholic beverages and higher sales following the introduction of credit-card payments. As a result, sales were ¥7,808 million, up 7.7% year on year, and segment profit, or operating profit, was ¥435 million, up 23.5%.」

「Although depreciation increased because of renovation work at six major stores carried out in the previous fiscal year, sales and profit remained strong, helped by successful customer acquisition through a new price-promotion campaign for alcoholic beverages and higher sales following the introduction of credit-card payments. As a result, sales were ¥5,089 million, up 7.0% year on year, and segment profit, or operating profit, was ¥245 million, up 5.9%.」

「We successfully attracted new customers through a new price-promotion campaign for alcoholic beverages, and the introduction of credit-card payments also contributed to higher sales. Overall, sales and profit remained strong. As a result, sales were ¥2,528 million, up 6.0% year on year, and segment profit, or operating profit, was ¥178 million, up 33.9%.」

「While securing stability by strengthening the earnings base through higher customer traffic at existing stores, we will continue to focus actively on developing new stores as a foundation for future growth.」

「At the business, we began refurbishing some aging stores to improve their image, strengthened operations at the Hasuda store opened last year and the newly relocated Isezaki Mall store, and continued to expand and review product ranges at existing stores to broaden the customer base. As a result, despite a period when exceptionally hot weather held back customer traffic, sales were ¥4,756 million, down 1.1% year on year, while segment profit, or operating profit, was ¥231 million, up 8.0%.」

「At the business, the Hasuda store, which passed its first full year since opening in April 2017, posted the highest sales growth among all stores, up 14.1% year on year as customer retention and awareness increased. More than half of the existing stores performed steadily, supported by a competitively priced product range, but the decline in sales at the Isezaki Mall store, whose selling space was significantly reduced following its relocation from the flagship Chojamachi store, had a substantial impact and could not be offset overall.」

「At the Hasuda store, cannibalization was contained within the expected range, and monthly profit and loss improved steadily. We were able to establish a path to profitability as early as the next fiscal year.」

「As a result, the number of stores reached 14, sales were ¥7,308 million, up 0.7% year on year, and segment profit, or operating profit, was ¥366 million, up 13.4%. While securing stability by strengthening the earnings base through higher customer traffic at existing stores, we will also actively focus on developing new stores as a foundation for future growth.」

「After a long period of rising performance began to level off and competition among business-use supermarkets became localized, we decided to resume opening new stores, which had been put on hold since 2006. We opened the Hasuda store in April and decided to relocate and open the Isezaki Mall store nearby in August as part of rebuilding the aging Chojamachi store. As a result, the number of stores reached 14,」

「Following the enforcement on 1 June of the “Standards for Fair Trade in Alcoholic Beverages,” we reviewed the selling prices of approximately 800 items, contributing to an improvement in profit margins.」

「Against this backdrop, we focused on promoting differentiated products unique to Gyomu Super on a product-by-product basis, while improving customer service and merchandising skills as part of employee training. Overall, the stores have performed generally well.」

「Against this backdrop, we focused on promoting differentiated products unique to Gyomu Super on a product-by-product basis, while improving customer service and merchandising skills as part of employee training. Overall, the stores performed generally well. The produce division, which is growing as a core division, exceeded the previous year’s result despite difficulties controlling procurement amid continued high market prices caused by poor summer weather.」

「We will continue to focus on expanding the range of fresh foods that meet consumer needs, implementing detailed measures to compete with rival stores, and developing new stores, with the aim of further improving performance.」

「The expanded sales of produce and meat across all stores since the second half of the previous fiscal year, together with detailed sales promotions tailored to local conditions at each store, created synergies. Sales gained momentum toward the second half of the period and remained generally strong. Profit margins also improved, helped by establishing an in-house meat-processing center and reducing electricity charges.」