Wholesale Expansion Through the Rollout of Relax Time and the Development of New Channels

「From the 45th fiscal period, the wholesale sales business has been rebuilding its channel-specific strategies to strengthen earnings power.」

「In wholesale sales to individually owned stores, sales declined approximately 10% year on year due to the impact of reviewing shipping methods and store closures. Wholesale sales to major mass retailers increased approximately 7% year on year, supported by generally strong sales of summer limited-time products and increased shipments of autumn and winter seasonal limited-time products. In general wholesale, sales from cross-border e-commerce to China grew, but sales declined approximately 5% year on year due to weak sales of Body Smoother at wholesale customers and lower visitor numbers at Tokyo Disneyland. As a result, sales in this business increased 1.1% year on year to ¥656 million, but the recognition of initial expenses related to the acquisition of the MAMA BUTTER brand resulted in an operating loss of ¥19 million, compared with an operating profit of ¥3 million in the same period of the previous year.」

「As a result, sales in this business were ¥1,395 million, down 11.5% from the previous fiscal year, while operating profit was ¥70 million, down 25.2% due to lower sales.」

「As a result, sales in this business were ¥649 million, down 14.4% year on year. Although efforts to improve delivery quantity accuracy for limited-time and other products and reduce the return rate produced results, operating profit declined sharply to ¥3 million, down 84.6% year on year, due to lower sales.」

「In other domestic general wholesale, we have long conducted business with ORIENTAL LAND CO.,LTD., wholesaling original and other products commissioned by the company for Tokyo Disneyland, hereinafter TDL. This fiscal year, the 40th anniversary of TDL's opening contributed to a substantial increase in transaction value, and cumulative sales for the current fiscal year were far higher than in the same period of the previous year. As a result, cumulative sales in this business were ¥1,294 million, up 11.0% year on year. In addition to higher sales, operating profit increased to ¥91 million, up 48.6% year on year, as we implemented improvements including discontinuing the dispatch of staff to underperforming shops at major mass retailers.」

「As a result, sales in this business were ¥758 million, up 2.3% year on year, and operating profit was ¥21 million, up 9.5% year on year.」

「The wholesale sales business was affected, much like HOR-operated stores, by declining customer traffic resulting from weak sales of limited-time body-care cosmetics and delays in procuring certain miscellaneous goods, and lower sales of these products had a significant impact on total business sales. Within this business, sales to individually owned stores increased slightly year on year as skincare sales recovered. Wholesale cross-border e-commerce sales to China declined sharply from the same period of the previous year, partly because demand recovery in the Chinese market was delayed. Meanwhile, other general wholesale channels grew steadily as more business partners increased delivery values and expanded the range of products handled amid the recovery from the COVID-19 pandemic.」

「Meanwhile, wholesale sales to major mass retailers grew steadily as the number of Relax Time self-service locations focused on body care increased, while improved product assortments and merchandising increased customers' purchase rates at existing stores. Other general wholesale channels also performed well, with sales increasing at some business partners as sales channels including Loft expanded and the COVID-19 pandemic subsided.」

「Meanwhile, sales to major mass retailers grew as the number of Relax Time self-service locations focused on body care increased, as did the number of wholesale locations for individual products such as the Oh!Baby and Beehoney brands. Wholesale cross-border e-commerce sales to China exceeded those of the same period of the previous year from October onward, although the market remained unstable due to a series of COVID-19 measures in China and other factors.」

「Meanwhile, wholesale sales to major mass retailers grew steadily as the self-service Relax Time concept, centered on body-care products, expanded and distribution channels for individual products increased; some business partners also recorded higher delivery values as the COVID-19 pandemic subsided. Sales from wholesale cross-border e-commerce to China declined year on year amid tighter regulations and continued uncertainty in the Chinese market. As a result, sales in this business were ¥742 million, up 15.0% year on year, and operating profit was ¥19 million, compared with an operating loss of ¥2 million in the same period of the previous year, marking a return to profitability.」

「Meanwhile, sales of the self-service Relax Time concept to major mass retailers declined slightly, but wholesale sales of individual body-care cosmetics doubled. In other general wholesale channels, the number of stores carrying the products increased, and some business partners saw higher delivery values as the COVID-19 pandemic subsided. Wholesale cross-border e-commerce to China performed broadly in line with the plan. As a result, sales in this business were ¥362 million, up 9.7% year on year, and operating profit was ¥3 million, compared with an operating loss of ¥17 million in the same period of the previous year.」

「Meanwhile, wholesale sales to major mass retailers benefited from an increase in the number of Relax Time locations, as well as sales growth at existing stores, while new customer development progressed in other general wholesale channels and some business partners saw higher delivery values as the COVID-19 pandemic subsided.」

「Meanwhile, sales to major mass retailers increased as the number of locations for the self-service Relax Time concept and individual products such as Beehoney-branded products increased, along with wholesale sales to business partners to which we dispatch sales staff. Sales increased 3.9% year on year.」

「Meanwhile, wholesale sales to major mass retailers increased approximately 5% year on year, as the self-service Relax Time concept, centered on body-care products, continued to grow steadily, sales at stores to which we dispatch sales staff increased, and distribution channels for individual products expanded. Sales from cross-border e-commerce to China also showed signs of recovery at present despite an uncertain outlook, increasing approximately 92% year on year.」

「Meanwhile, wholesale sales to major mass retailers increased 15.9% year on year in total across the two divisions, as the self-service Relax Time concept, centered on body-care products, continued to grow steadily. Sales from cross-border e-commerce to China also increased 66.4% year on year, showing signs of a slight recovery at present despite an uncertain outlook.」

「Although consulting-based sales at major mass retailers were affected by the COVID-19 pandemic, self-service stores, including Relax Time, steadily increased sales and the number of locations, as stores selling groceries continued operating. The number of wholesale locations for Beehoney-branded products also increased, limiting the decline in total sales to 2.8% from the previous fiscal year. Meanwhile, sales from wholesale cross-border e-commerce to China declined 81.1% from the previous fiscal year, despite the active rollout of promotional activities and other initiatives, as issues including the price gap with competing products in the Chinese market persisted.」

「Sales from cross-border e-commerce to China declined sharply, down 85% year on year, partly because the market recovery has been delayed and competition has intensified. As a result, sales in this business were ¥555 million, down 42.1% year on year, and the operating loss was ¥42 million, compared with an operating profit of ¥132 million in the same period of the previous year.」

「Sales from cross-border e-commerce to China declined sharply, down 90.8% year on year, due in part to market conditions in China and the reactionary decline from the high sales recorded in the same period of the previous year.」

「Wholesale sales to individual owner-operated stores remained difficult, as did sales at House of Rose directly operated stores. However, wholesale sales to mass retailers grew, driven by sales at stores staffed by personnel dispatched by the company and the expansion of Relax Time, centered on body-care cosmetics. Meanwhile, sales for cross-border e-commerce to China through アイスタイルトレーディング declined substantially due to tighter regulations in China and changes in market conditions.」

「Wholesale sales to stores were affected by the consumption tax increase, as was the directly operated store business. However, wholesale sales to individual owner-operated stores benefited from customer-attraction initiatives introduced from October onward, resulting in an increase in customer numbers. In the mass-retailer channel, the number of customers increased and product awareness improved through merchandising initiatives. Combined revenue from the two divisions therefore declined only slightly year on year. Meanwhile, other general wholesale was affected by a rapid decline in demand for wholesale sales for cross-border e-commerce to China from around the summer, due to changes in market conditions, resulting in a 23.2% year-on-year decline in revenue.」

「Wholesale sales to stores were affected by unseasonable weather, including a cool summer, which depressed sales of seasonal products, as in the directly operated store business. However, some pre-consumption-tax-increase demand and an increase in the number of customers in the mass-retailer wholesale division helped revenue remain approximately at the year-earlier level. Meanwhile, other wholesale declined 21.6% year on year, partly because wholesale sales for cross-border e-commerce to China slowed from the previous year due to tighter regulations in China and changes in market conditions.」

「Wholesale sales to stores increased 2.3% year on year in total for the two divisions. The mass-retailer division expanded the rollout of the Relax Time merchandising format centered on body-care cosmetics, while the wholesale division serving individual owner-operated stores also grew steadily. In contrast, other wholesale declined 4.6% year on year, partly due to a reaction to the previous year's wholesale sales for cross-border e-commerce to China.」

「Although wholesale sales to individual owner-operated stores declined, wholesale sales for cross-border e-commerce to China through アイスタイルトレーディング continued to increase substantially. The wholesale business also grew steadily as the company expanded store openings for its merchandising format centered on body-care cosmetics at major mass retailers.」

「In other general wholesale, wholesale sales for cross-border e-commerce to China continued to perform well, with revenue increasing 62.1% year on year.」

「Wholesale sales to stores declined 2.8% year on year, as sales to both individual owner-operated stores and mass retailers decreased. Meanwhile, wholesale sales for cross-border e-commerce to China through domestic operators continued to increase, rising 63.5% year on year. As a result, business revenue was ¥1,091 million, up 26.9% year on year, and operating profit was ¥245 million, up 45.0% year on year.」

「Wholesale sales to stores declined 5.0% year on year, as weakness in wholesale sales to individual owner-operated stores due to lower customer numbers more than offset progress in the Relax Time merchandising format centered on body-care cosmetics in the mass-retailer division. Meanwhile, sales in other general wholesale increased substantially to approximately three times the year-earlier level, driven by wholesale sales for cross-border e-commerce to China through domestic operators. As a result, business revenue was ¥627 million, up 64.3% year on year, and operating profit was ¥147 million, up 185.4% year on year.」

「Wholesale sales to individual store owners declined 3.0% year on year due to decreases in the number of stores and customers. Wholesale sales to mass retailers declined 1.8% year on year, partly because the rollout pace of the new Relax Time merchandising format centered on body-care cosmetics slowed due to circumstances at host stores. In other general wholesale, wholesale sales to cross-border e-commerce operators serving China during the trial phase continued to perform well, increasing substantially to approximately 2.3 times the year-earlier level. As a result, business revenue was ¥1,257 million, up 27.0% year on year, and operating profit was ¥234 million, up 190.1%.」

「Wholesale sales to individual store owners declined 4.3% year on year due to a reduction in the number of stores and weak sales at existing stores. Meanwhile, the wholesale division for mass retailers increased 1.6% year on year as the company expanded the Relax Time merchandising format centered on body-care cosmetics and strengthened support for store operations. In other general wholesale, sales to cross-border e-commerce operators serving China, currently in the trial phase, increased substantially, reaching approximately 2.7 times the year-earlier level.」

「Wholesale sales to individual store owners declined 2.4% year on year despite the positive effect of refurbishing existing stores, due to the impact of a reduction in the number of stores following store closures in the previous fiscal year. Wholesale sales to mass retailers declined 5.7% year on year because the pace of new store openings for the new Relax Time merchandising format, centered on body-care cosmetics, slowed and sales at some existing stores were weak. In contrast, sales to online retailers in other general wholesale grew substantially, increasing 80.3% year on year.」

「Wholesale sales to individual store owners declined slightly due to a reduction in the number of stores and closures of existing stores, but revenue in the wholesale division for mass retailers increased steadily, supported by the expansion of new channels through the Relax Time merchandising format centered on body-care cosmetics and increased wholesale sales to online retailers.」

「Wholesale sales to individual store owners declined 3.7% year on year due to a reduction in the number of stores and closures of stores damaged by the Kumamoto Earthquake. Meanwhile, the wholesale division for mass retailers grew 11.8% year on year, supported by the steady rollout of the new Relax Time merchandising format centered on body-care cosmetics. In other general wholesale, sales to online retailers remained strong, increasing 28.9% year on year.」

「The wholesale division for mass retailers expanded the rollout of the new Relax Time merchandising format, centered on body-care cosmetics, steadily, resulting in an 11.6% year-on-year increase in revenue. In other general wholesale, sales to online retailers remained strong, resulting in a 31.3% year-on-year increase in revenue.」

「The wholesale division for mass retailers benefited from growth at existing stores and the expanded rollout of the new Relax Time merchandising format, centered on body-care cosmetics, resulting in a 19.0% year-on-year increase in revenue. In other general wholesale, sales to online retailers grew substantially, resulting in a 49.3% year-on-year increase in revenue.」

「While pursuing further new channels through the full-scale rollout of Relax Time, which has begun full operations, we will expand wholesale sales to online retailers and work to grow the business.」