A Growth Cycle Starting with Becoming the Company Chosen by Stylists

「The company aims to establish a system for a net increase of more than 140 stylists per year by strengthening graduate recruitment, expanding the recruitment of female stylists and accepting people of diverse age groups through reskilling and other initiatives. The company aims to achieve average annual income of ¥5 million for stylists through continued increases in compensation funded by price revisions, including securing funding for annual pay increases of approximately 4%.」

「In addition to strengthening investment in human resources to improve stylists' employment terms and working arrangements, the company aims to improve employee satisfaction and become a company chosen by more stylists by expanding human resources development centers in Japan and overseas. Domestic turnover rate 7.3% 6.8% 5% or lower for the fiscal year ending June 2029 Overseas turnover rate 18.0% 15.7% 10% or lower for the fiscal year ending June 2029」

「The numerical targets for the above measures are as follows. Metric Actual for the fiscal year ended June 2024 Target Domestic turnover rate 7.3 % Fiscal year ending June 2029 5 % or lower Overseas turnover rate 18 % Fiscal year ending June 2029 10 % or lower」

「During the nine-month consolidated period ended 31 March 2024 (1 July 2023 to 31 March 2024), the company mainly improved compensation and working conditions for domestic stylists, including base-pay increases. As the competitiveness of salary offers at the time of hiring improved, the number of hires increased from the same period of the previous year. In addition to improving compensation, the company improved working conditions by introducing regular closing days and shorter operating hours, resulting in a year-on-year decrease in departures. As a result, the net increase in personnel exceeded the same period of the previous year, and the total number of operating seats at stores trended upward.」

「As the competitiveness of salary offers at the time of hiring improved, the number of hires exceeded both the same period of the previous year and the plan. The number of departures decreased from the same period of the previous year as the company improved working conditions by improving compensation and introducing regular closing days and shorter operating hours. However, the effect on stylists leaving for individual reasons, such as health concerns or moving to another industry, was limited, resulting in departures falling short of the plan. The net increase exceeded the plan because the strong number of hires offset the shortfall in departures.」

「As the competitiveness of salary offers at the time of hiring improved, the number of applications and hires exceeded the plan. However, because the effect on stylists leaving for individual reasons, such as health concerns or moving to another industry, was limited, the net increase after subtracting departures from hires was in line with the plan.」

「Under this medium-term management plan, becoming a company chosen by both customers and the people who drive business growth—the stylists—is positioned as the most important management policy. The company aims to become a company chosen by more stylists by strengthening investment in human resources to improve stylists' employment terms and working arrangements and by expanding human resources development centers, thereby building a business foundation for profit growth through store expansion and enhanced service value.」

「The company achieved a number of hires exceeding the same period of the previous year by diversifying recruitment channels, including graduate recruitment, employee referrals and alumni recruitment (rehiring former employees), and by strengthening recruitment activities, including the introduction of incentives.」

「Under this medium-term management plan, becoming a company chosen by the people who drive business growth—the stylists—is positioned as the most important management policy.」