Investment in Store Revitalization, Primarily at Transferred Stores

「We also revitalized The Big Harutori store in Kushiro in April to update it to the latest model, expanding the frozen food and delicatessen sections in response to changes in customers’ lifestyles.」

「Capital expenditures during the fiscal year amounted to ¥14,789 million. Major items included the acquisition of the trust beneficiary rights for Sapporo Naebo, maintenance and repairs at former Seiyu stores and existing stores, and sales-floor revitalizations.」

「Optimizing the business-format mix in the Sapporo area」

「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.」

「We also carried out major store revitalizations at 5 stores, reviewing product ranges and renewing facilities. In store DX investment to improve customer convenience and address labor shortages, we shifted the focus from self-checkout registers, whose rollout was nearly complete, to electronic shelf labels, which have now been introduced at more than 50% of stores.」

「We carried out major revitalizations at 4 stores during the interim accounting period. At Maxvalu Kita 26jo, we introduced i-Regi, which enables customers to scan products themselves and reduces checkout time, for the first time in our company. At Aeon Nemuro, we completely renewed facilities and created a product range suited to the store's location and customers' lifestyles, improving the shopping environment so that the store could continue to serve as an essential local lifeline.」

「We carried out major revitalizations at 2 stores, Maxvalu Kitahiroshima in March and Aeon Yoichi in April. We expanded our handling of local products popular in the community and enlarged deli and frozen-food selling space, creating product ranges suited to each store's location and customers' lifestyles. We also completely renewed facilities to improve the shopping environment.」

「During the fiscal year, we opened the 3 planned SM stores. To enhance the value of existing stores, we conducted store revitalizations by gaining a deeper understanding of customer needs at each store, reviewing product ranges and renewing facilities.」

「We carried out major revitalizations at 8 stores. In October, at Aeon Kitami, we completely renewed the household goods and apparel sales areas and improved the food court environment.」

「Under our initiative to enhance the value of products and stores, we opened 1 new store and carried out major revitalizations at 7 stores. As part of these major revitalizations, we expanded deli and frozen-food selling space and increased our range of local products popular in the community, creating product ranges tailored to each store's location and customers' lifestyles. We also completely renewed facilities, including replacing refrigerated and frozen-food cases and introducing self-checkout registers, thereby improving the shopping environment.」

「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.」

「We also carried out major revitalizations at 2 GMS stores, 4 SM stores and 2 DS stores, for a total of 8 stores, completely renewing facilities while strengthening our offerings by expanding deli products and frozen-food selling space.」

「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.」

「During the fiscal year, we carried out major revitalizations at 11 stores, comprising 4 GMS stores, 5 SM stores and 2 DS stores, completely renewing facilities and expanding product ranges to include products for which demand is growing and products popular in their respective regions.」

「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.」

「As part of our sales initiatives, we carried out major revitalizations at 6 stores during the first quarter, comprising 2 GMS stores, 3 SM stores and 1 DS store.」

「As part of our other specialty-store initiatives, we revitalized 28 SM stores to strengthen gardening and improve product appeal and services.」

「For existing-store revitalization, we undertook major revitalization at 5 stores in the first half. To provide product ranges suited to the characteristics of each trading area and renew facilities, we revitalized The Big Kawakita in Kushiro and The Big Higashi-Ganrai in Sapporo in June, and MaxValu Rumoi in July. Sales rose at each store, but the spread of COVID-19 forced us to postpone or review some planned revitalization projects.」

「For existing-store revitalization, in April we renewed MaxValu Kita in Sapporo, updating its product range to suit the characteristics of its trading area and completely renewing its facilities.」

「On the sales front, we carried out more than ¥1.1 billion of revitalization, primarily at regional stores, to increase earnings at existing stores. At Aeon Kushiro, the largest-scale Aeon store in eastern Hokkaido, and Aeon Yukawa in Hakodate, we introduced tenants making their first appearance in the respective areas and expanded the food courts. In the directly operated areas, we developed food zones meeting demand for convenience, time savings and health-conscious products. By revitalizing the entire facilities, combining directly operated and specialty-store areas, we worked to enhance their value as No. 1 shopping centers in their respective communities.」

「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.」

「Capital expenditure during the fiscal year totaled ¥11,093 million. Major items included ¥4,171 million for the acquisition of beneficial interests in a trust relating to Aeon Kamiso and ¥3,897 million for the acquisition of land for Aeon Sapporo Motomachi.」

「In our sales initiatives, we refurbished stores to develop formats suited to their local communities. At Aeon Mall Sapporo Hassamu, one of the largest shopping malls in Hokkaido, we installed Hokkaido's first priority counter for children in a food court, helping attract customers raising children as we worked to create an attractive facility that meets local needs and serves as a new community hub. As a result, specialty-store sales rose to 107.4% year on year. At Aeon Takikawa, we focused on offering products at value prices and creating sales areas that make it easy to shop across departments. The refurbishment of the food sales area enabled the food business to drive the store's overall performance, with sales rising to 113.6% year on year and gaining support from local customers.」

「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.」

「Capital expenditure during the fiscal year totaled ¥2,849 million, mainly for refurbishment work on sales areas at existing stores.」

「We revitalized 9 stores, including Sapporo Hassamu and Takikawa.」

「The main reason for the increase in revenue was the significant effect of store revitalization carried out in the previous fiscal year. The effect was particularly pronounced at Daiei stores changed to us in fiscal 2015, where sales reached 106.4% year on year.」

「We invested a record ¥1,784 million in revitalization during the fiscal year, including expenses such as repairs. Major revitalization of stores changed from Seiyu to us was carried out at Sapporo Asabu in March, Higashi-Sapporo in June and Shin-Sapporo in November, as we worked to create new sales areas suited to customers at urban stores directly connected to subway stations.」

「Sales at existing stores changed from Seiyu to us reached 104.7% year on year. One year after the change, sales continue to grow as the potential of the stores' originally favorable locations has aligned with Aeon's product range and systems.」

「In June, we undertook major revitalization centered on the food sales area at Aeon Higashi-Sapporo, a former Daiei store changed to us in the previous fiscal year. Following the revitalization, food sales at Aeon Higashi-Sapporo reached 116.7% year on year, while total store sales reached 108.6%, with the food business steadily driving the performance of the store as a whole.」

「During the fiscal year, we plan to focus on revitalizing stores changed from Seiyu to us in prime locations, with a record ¥2 billion of revitalization investment planned.」