Ongoing Review of the Product Mix and Enhancement of the Jonetsu Kakaku Value Brand

「段階的にラインアップを増やし、9月末時点のシリーズ累計販売数は約20万本に上る。」

「In the domestic business, as consumers became more conscious of protecting their household budgets and more price-sensitive, the company promoted pricing strategies and sales promotions in response to changes in customer behavior, resulting in an increase in customer traffic at existing stores. As selective consumption progressed, sales of IP-content products that match customer preferences, one of the company’s strengths, and trend products remained strong and contributed to higher net sales.」

「By accurately capturing consumers' selective spending preferences, highly preference-driven trend products, including IP content and beauty-related products, are contributing to sales.」

「For PB/OEM products, the company has increased the sales mix and contributed to a higher gross margin by improving its ability to develop products that address customer needs and adopting a strategy of converting standard products to OEM products.」

「In the domestic business, revenue and operating profit increased as same-store sales grew 5.8%, driven by higher duty-free sales, growth in PB/OEM product sales, strong seasonal products, greater media exposure and pricing strategies.」

「For PB/OEM products, the company improved awareness through media exposure and strengthened its sales structure, while promoting new product development and improvements to existing products using customer feedback. As a result, PB/OEM sales increased and contributed to a higher gross margin.」

「For PB/OEM products, one of the key initiatives in the medium-term management plan, the company improved awareness through media exposure and strengthened its sales structure, while promoting improvements to existing products and the development of new products. As a result, the PB/OEM sales mix increased and contributed to a higher gross margin.」

「For PB/OEM products, one of the key initiatives in the medium-term management plan, the company increased television advertising and SNS distribution, improving brand awareness through greater media exposure. It also promoted product development focused on popular products and expanded in-store offerings with superior designs and reasonable pricing. These efforts increased the sales mix of PB/OEM products and contributed to a higher gross margin.」

「For PB/OEM products, one of the key initiatives in the medium-term management plan, the company continued to improve brand awareness and strengthen its sales structure. It also strengthened initiatives following the integration of the merchandising headquarters for the discount and GMS businesses in the previous consolidated fiscal year, and the resulting increase in the number of products in the GMS business contributed to higher sales.」

「For PB/OEM products, one of the key initiatives in the medium-term management plan, the company strengthened its development capabilities by improving its ability to respond to trends and its development speed, and expanding products with strong differentiation. In addition to more active in-store sales efforts, greater media exposure improved brand awareness and branding, resulting in higher sales and an increased sales mix of PB/OEM products.」

「PB/OEM products, one of the growth drivers in the medium-term management plan, continued to progress steadily during the cumulative third-quarter consolidated period. By product category, food contributed to sales in the consolidated accounting period under review, with high-gross-margin categories such as confectionery and delicacies showing growth. Sales also increased in categories that had been sluggish since the COVID-related demand surge, such as bedding and kitchenware, led primarily by collaborative products with manufacturers.」

「Private-brand and OEM products accounted for 16.8% of sales at domestic discount stores, up 2.9% from the same period of the previous year. In addition to converting party goods for Halloween and Christmas into private-brand and OEM products and increasing carry-case sales in line with stronger travel demand, the company increased media exposure, including its first television commercial since the rebranding of 情熱価格 in December 2022. Cumulative sales of the 6 products featured in the commercial rose 160% from the pre-broadcast level, making a substantial contribution to higher brand awareness and sales. In December, PB/OEM products recorded their highest sales ever.」

「Sales and operating profit increased as the expansion of private-brand product sales and growth in outdoor and leisure products led to a higher gross margin.」

「The Group will further strengthen its private brand "情熱価格" and deliver products offering value and appeal that generate even greater excitement and anticipation among customers. To differentiate itself from competitors, it will also implement various initiatives, including offering imports not previously sold in Japan and products with distinctive characteristics.」

「In February 2021, the Group announced that it would revamp Don Quijote's private brand "情熱価格," which had reached its 12th year and offered approximately 3,900 items. To pursue greater excitement and anticipation among customers, the brand would be repositioned as a "People Brand (PB)" created together with customers, rather than a "private brand" developed entirely in-house. Specific initiatives included launching a dedicated website, "ダメ出しの殿堂," to solicit candid customer criticism and serve as a platform for co-creation, and redesigning the "情熱価格" logo to make a strong impact and communicate that it represents Don Quijote's flagship products.」

「MEGA Don Quijote, the Group's family-oriented format, was affected by unfavorable weather and the spread of COVID-19, among other factors, but its community-focused product mix, pricing and services gained customer support, resulting in 0.2% same-store sales growth.」

「In terms of sales performance, same-store sales grew 0.9%, supported by strong food demand and the success of initiatives to strengthen non-food categories such as apparel and home-related products.」

「MEGA Don Quijote, the Group's family-oriented format, continued to gain customer support through its community-focused product mix, pricing and services, but unfavorable weather and the consumption tax increase resulted in a 0.4% decline in same-store sales.」

「MEGA Don Quijote, the Group's family-oriented format, saw strong sales of food and daily consumables as its community-focused product mix, pricing and services gained customer support. Same-store sales grew 2.7%.」

「MEGA Don Quijote UNY will strengthen its food departments, including the four fresh-food categories of produce, seafood, meat and prepared foods, with an even greater focus on quality and freshness, aiming to operate stores that satisfy customers across a broad range of age groups.」

「MEGA Don Quijote, the Group's family-oriented format, increased repeat purchases through its community-focused product mix, pricing and services, but repeated natural disasters caused customer traffic to decline, resulting in a 0.2% decrease in same-store sales.」

「MEGA Don Quijote, the Group's family-oriented format, saw strong sales of food and daily consumables as its community-focused product mix, pricing and services gained customer support. Same-store sales grew 1.2%.」

「In March 2018, the awards ceremony for the 5th Generic Consumer Electronics Awards was held, and 2 products from the Group's private brand "情熱価格" won the grand prize and a category award. The grand prize marked a second consecutive win following the previous year's award.」

「MEGA Don Quijote, the group's family-oriented format, has continued to increase customer repeat rates through locally tailored product mixes, pricing and service. Sales of food and everyday consumables remained strong, and same-store sales grew 3.1%.」

「The group's private-brand product development continues to make steady progress. In March 2017, Jibun Senyo PC & Tablet won the grand prize and the digital consumer electronics award at the 4th Generic Consumer Electronics Product Awards, while the 50-inch 4K-compatible LCD television launched in June sold out immediately. In addition, 2 apparel brands developed as private-label products were brought into full operation and are being developed as a key component of the future growth strategy.」

「For the family-oriented MEGA Don Quijote and New MEGA Don Quijote formats, locally tailored product mixes, pricing and service increased customer repeat rates, while sales of essential goods such as food and everyday consumables drove performance.」

「For the family-oriented MEGA Don Quijote and New MEGA Don Quijote formats, locally tailored product mixes, pricing and service increased customer repeat rates, while sales of essential goods such as food and everyday consumables drove performance.」

「We will accelerate improvements and development of the Jyonetsu Kakaku private-brand products planned in response to customer feedback, pursuing new quality-related value in addition to competitive pricing so that customers will be satisfied.」