The Challenge of Becoming the Unrivaled Leading Local Store and Company

「At the revitalized Maxvalu Kyowa store (Kyowa Town) in July, we expanded the selection of value-added products emphasizing local produce and taste. As a result of offering products that reflect our distinctive strengths, sales rose sharply to 123.2% of the year-earlier level.」

「Under “evolving each business format,” we carried out a large-scale revitalization of The Big Harutori store in Kushiro and expanded the frozen food and delicatessen sections, thereby achieving a merchandise assortment that responds to changes in customers’ lifestyles.」

「Under our store strategy, to establish a more comfortable shopping environment, we undertook major revitalization and format conversions in the Sapporo area, where we changed from Seiyu to us, expanded product ranges and worked to achieve an optimal store network for each area.」

「In particular, we will strengthen the discount stores that have received strong support from customers amid inflation, and in FY2026 we will open a new store in Chitose, a promising area where the population continues to grow.」

「Under our store strategy, we revitalized 2 of the stores changed from Seiyu to us in October 2024, and both are generating sales in line with plan.」

「During the fiscal year, we opened 1 GMS store, 2 SM stores and 2 small-format SM stores to expand our market share, and undertook major revitalization at a total of 5 stores: 3 GMS stores and 2 SM stores, enhancing store appeal.」

「For new store openings, in May we opened Aeon Kitago on the site of the former MaxValu Kitago, which operated until August 2022, adding new cosmetics and pharmaceutical sales areas. In July, we opened MaxValu Tomakomai Shimizu in Tomakomai, the seventh MaxValu food supermarket in the city, and in August we opened My Basket Minami 5-jo Nishi 9-chome. We undertook major revitalization at 4 stores during the interim accounting period. At MaxValu Kita 26-jo, we introduced our first self-scanning checkout system, i-Regi, enabling customers to scan products themselves and reduce checkout time.」

「For new store openings, we opened Aeon Kitago on the site of the former MaxValu Kitago, which operated until August 2022. In addition to cosmetics, which were not offered at the food supermarket MaxValu, the store added book and stationery sales areas to provide new product proposals.」

「Regarding "enhancing the value of products and stores," we opened 3 SM-format stores in Sapporo: MaxValu Express Shinkawa 3-jo, MaxValu Yamahana and Aeon Minami-Hiragishi, aiming to expand our share in priority areas. We undertook major revitalization at 8 stores, reviewing product ranges and renewing facilities to enhance store appeal.」

「Regarding "enhancing the value of products and stores," we opened 3 new stores. In October, we opened MaxValu Yamahana in central Sapporo as an urban-format store, offering a wide range of carefully selected prepared foods and in-store baked goods, and introduced a rapid delivery service to meet local needs. In November, we opened Aeon Minami-Hiragishi on the site of the former MaxValu Hiragishi, which operated until August 2022. To meet the needs of single-person households and working women, we expanded offerings of household goods, including cosmetics not previously sold at the food supermarket MaxValu, and expanded the food range to provide new proposals. We also undertook major revitalization at 8 stores. In October, at Aeon Kitami, we renewed the household goods and apparel sales areas and improved the food court environment.」

「Regarding "enhancing the value of products and stores," we opened 1 new store and undertook major revitalization at 7 stores.」

「In March, we opened MaxValu Express Shinkawa 3-jo in Sapporo's Kita Ward as a model store for a small trading area. We also undertook major revitalization at 3 GMS stores and 2 SM stores, with investment in both new openings and major revitalization exceeding the previous year's level.」

「Regarding "enhancing the value of products and stores," we opened 3 new stores and undertook major revitalization at 8 stores, renewing facilities, expanding frozen-food sales areas and strengthening offerings of prepared foods and local products.」

「Regarding "enhancing the value of products and stores," we opened 2 new stores. In October, we opened The Big Nagayama in Asahikawa, achieving the largest frozen-food range in our DS format. In November, we opened MaxValu Otofuke in Otofuke, Kawato District, expanding products from Food Valley Tokachi and locally sourced products and specialty items made with local ingredients under the concept of a community-based store focused on "local products and freshness." We also undertook major revitalization at 2 GMS stores, 4 SM stores and 2 DS stores, renewing facilities and strengthening product offerings by expanding prepared foods and frozen-food sales areas.」

「Regarding "enhancing the value of products and stores," we undertook major revitalization at 2 SM stores and 1 DS store during the cumulative second-quarter period. Facilities were renewed, and the range of products for which demand is growing and products popular in the local communities was expanded.」

「We also undertook major revitalization at The Big Tottori Odori in Kushiro and MaxValu Kita 32-jo in Sapporo. Facilities were renewed, and the range of products for which demand is growing and products popular in the local communities was expanded.」

「As a local company in Hokkaido, we believe our role is to develop stores and people that customers can rely on and, as the company responsible for Aeon Group's retail business in Hokkaido, to make full use of the Group's platform to continue providing customers with safe, reliable and attractive products and services, while remaining committed to Hokkaido and contributing to its development. Accordingly, our basic management policy is to operate from the customer's perspective, and we will thoroughly promote locally focused store environments, product ranges and sales centered on local production for local consumption, based on the area and market served by each store. We will pursue further growth and development toward making our stores "the most trusted in Hokkaido."」

「During the cumulative third-quarter period, we undertook major revitalization at a total of 11 stores: 4 GMS stores, 5 SM stores and 2 DS stores. We renewed facilities and expanded the range of products for which demand is growing and products popular in the local communities.」

「During the cumulative second-quarter period, we undertook major revitalization at a total of 9 stores: 3 GMS stores, 4 SM stores and 2 DS stores. To enhance store appeal, we renewed facilities and expanded the range of products for which demand is growing and products popular in the local communities.」

「In our sales initiatives, we undertook major revitalization at a total of 6 stores during the cumulative first-quarter period: 2 GMS stores, 3 SM stores and 1 DS store. To enhance store appeal, we expanded locally popular products and fresh local agricultural and seafood products, while updating our product ranges and facilities to reflect new lifestyles.」

「We will pursue further growth and development toward making our stores "the most trusted in Hokkaido."」

「As part of our other specialty-store initiatives, we revitalized 28 SM stores to strengthen gardening and improve product appeal and services. In the cycle business, to meet demand for health-related products, we expanded our range of sporting goods, electric-assist products and products handled online. We also expanded the number of stores carrying indoor cycling products as a new approach to maintaining health and held trial events so that more customers could experience the enjoyment of these products. Sales rose to 104.4% of the previous year's level.」

「In our sales initiatives, we opened 4 new stores during the cumulative second-quarter period. In July, we opened MaxValu Nisshin in Tomakomai, offering locally popular products and fresh local agricultural and seafood products, as well as underwear, including undershirts, a strong GMS product category, and flowers through line extensions. Performance is in line with plan. For existing-store revitalization, we carried out major revitalization at 5 stores in the first half.」

「To realize a strong food business, we will focus on opening and revitalizing food supermarkets. We will develop small- and medium-sized formats that can be opened in the Sapporo area and open stores without missing opportunities.」

「In our sales initiatives, we invested more than ¥400 million in 22 projects during the half-year, with the aim of increasing earnings through revitalization. In particular, to strengthen our regional stores, we undertook the first major, store-wide revitalization of Aeon Yukawa since its opening. In the directly operated areas, initiatives such as developing liquor and flower departments as specialty stores and expanding the food zone with locally sourced products proved effective, with sales after the revitalization rising to 125.0% year on year. In the tenant areas, we expanded the tenant zone by attracting three food-service specialty stores making their first appearance in Hakodate and nearly doubled the number of tenants. As a result, customer traffic nearly tripled, marking a successful coordinated revitalization of the directly operated and tenant areas.」

「Sales of outdoor-related products were strong during the "Reiwa Celebration" event marking Japan's first 10-day holiday and celebrating the imperial era change. Sales during the period exceeded the previous year in all clothing, food and household goods divisions, rising sharply to 105.8% year on year.」

「As part of a major revitalization, 20 specialty stores opened and 51 were refurbished at Aeon Mall Sapporo Hassamu, the largest shopping center in Hokkaido, driving customer traffic to 101.5% of the previous period.」

「AEON Shizunai was closed for approximately 1.5 months after suffering the greatest earthquake damage, but after reopening, we held a special “Thank You” sale to express our gratitude to local residents. The sale was a great success, attracting more customers than on the busiest customer day of the previous year, and enabled us to recognize the importance of the store as “a store indispensable to the local community.”」

「In March, we reopened AEON Mall Sapporo Hassamu, one of Hokkaido’s largest shopping malls, which attracts 11 million visitors annually. We newly opened 20 specialty stores, including 7 stores opening in Hokkaido for the first time, and renovated 51 specialty stores. We also installed Hokkaido’s first priority counter seats in the food court for children eating baby food, advancing the mall’s development as a new community gathering place and earning strong support from many customers.」

「As sales initiatives, we held the “10th Anniversary of AEON Hokkaido” sales events for six months as an expression of gratitude to local residents, achieving sales of 107.1% of the previous period and winning the support of many customers. In addition, domestic fairs held throughout the year to meet customers’ expectations of enjoying delicious products from across Japan achieved sales of 104.6% of the previous period, and these initiatives leveraging the strengths of the AEON Group helped improve customer satisfaction.」

「As part of “promoting store development tailored to local communities,” we revitalized 9 stores, including AEON Sapporo Hassamu and AEON Takikawa. At AEON Sapporo Hassamu, we renovated primarily the food floor, strengthened merchandising themed around health and wellness, and expanded initiatives to develop specialist stores, including the liquor and flower sections.」

「As part of “promoting store development tailored to local communities,” we focused on merchandising that meets customer needs. In the food division, we worked to offer seasonal ingredients and carefully selected high-quality products from across Japan. At the monthly “AEON Hokkaido Products Day,” we changed the focus from sales centered on ingredients from specific production areas in Hokkaido to sales centered on seasonal ingredients from across Hokkaido that customers would consider to be at their most delicious. In addition, to meet customers’ expectations of enjoying delicious products from across Japan as well as seasonal products from Hokkaido, we held domestic fairs throughout the year. Leveraging our strength in collaborating with group companies across Japan, including AEON Retail Co., Ltd. and AEON KYUSHU CO.,LTD., we assembled seasonal products that customers wanted to eat now from local specialties in each region, earning a very favorable response from customers.」

「During the first quarter, we revitalized 19 stores under the concept of “creating stores that deliver the value customers expect.” In particular, at AEON Sapporo Soen, we expanded products addressing demand for prepared meals and introduced, for the first time at the company, face-to-face sales of prepared foods by weight, which has been well received.」

「Achieving the No. 1 Company in Hokkaido for Customer Loyalty」

「During the third quarter, we revitalized AEON Nayoro in September and AEON Shin-Sapporo in November. At AEON Nayoro, we created an attractive revitalized store by rolling out successful examples from previous revitalization investments, including expanding the Organic & Beauty Cosmetics and wellness sections supporting customers’ beauty and health, expanding the lineup of Hokkaido wines and alcoholic beverages, and establishing a new hobby section with an expanded touch-and-try space where children can have fun.」

「Under “the Challenge of Becoming the Overwhelmingly Leading Store and Company in the Region,” we actively revitalized stores during the first half to meet local customer needs and enrich customers’ lives, making revitalization investments of ¥1,054 million, ¥843 million more than in the same period of the previous year.」

「As the final year of the medium-term management plan, we are pursuing “the Challenge of Becoming the Overwhelmingly Leading Store and Company in the Region.”」