Improving the profit structure of store operations

「In the retail business, sales increased substantially from the previous year, driven by higher sales at existing stores and a significant contribution from 株式会社最上鮮魚, which had newly become a consolidated subsidiary. Gross profit increased with higher sales, and operating income rose as selling, general and administrative expenses were reduced through strict cost controls at stores, including utilities and consumables.」

「Although gross profit increased with higher sales, the gross profit margin declined because of higher purchasing costs resulting from increases in logistics and other costs. In addition to expenses associated with higher sales, the substantial increase in labor costs and other factors meant that the increase in selling, general and administrative expenses was about the same as the increase in gross profit.」

「In the retail business, we focused on building new purchasing capabilities, procuring a wide variety of fish with an awareness of seasonal availability, and creating lively sales floors characteristic of a specialty fresh-fish retailer. We also sought to differentiate our products by adding value and strengthened sales of high-value-added products such as sashimi and sushi made with fresh fish toppings.」

「In the retail business, we focused on building new purchasing capabilities, procuring a wide variety of fish with an awareness of seasonal availability, and creating lively sales floors characteristic of a specialty fresh-fish retailer. We also sought to differentiate our products by adding value and particularly strengthened sales of sushi made with fresh fish toppings. Meanwhile, to address increases in purchasing and logistics costs as well as labor costs resulting from wage increases, we allocated personnel according to the new patterns of busy and slow periods at each store, pursued thorough cost reductions through further operating efficiency, including standardization of work operations and streamlining of materials, and considered appropriate selling prices. As a result, sales were ¥14.620 billion, up 6.5% from the same period of the previous year, and operating income was ¥691 million, up 34.5%.」

「As a result, sales were ¥22.854 billion, up 8.7% from the same period of the previous year, and operating income was ¥1.341 billion, up 47.7%.」

「As a result, sales were ¥13.724 billion, up 4.3% from the same period of the previous year, and operating income was ¥513 million, up 28.0%.」

「In the retail business, as the impact of COVID-19 eased, we allocated personnel according to the new patterns of busy and slow periods at each store to address increases in purchasing and logistics costs as well as labor costs resulting from wage increases. While pursuing further operating efficiency, including standardizing work operations, and cost reductions such as streamlining materials, we worked to create lively sales floors focused on seasonal products and add value to merchandise, with particular emphasis on strengthening sushi sales. As a result, sales were ¥6.857 billion, down 0.2% from the same period of the previous year, while operating income was ¥328 million, up 28.1%.」

「We worked to procure better products at lower prices and to reduce delivery costs, including by restructuring routes and reducing the number of vehicles. However, these measures were still insufficient to offset the decline in earnings resulting from lower sales.」

「We worked to procure better products at lower prices and to reduce delivery costs, including by restructuring routes and reducing the number of vehicles. However, these measures were still insufficient to offset the decline in earnings resulting from lower sales.」

「We worked to procure better products at lower prices and to reduce delivery costs, including by restructuring routes and reducing the number of vehicles. However, these measures were still insufficient to offset the decline in earnings resulting from lower sales.」

「Reducing cost of sales is also an important issue. In fiscal 2019, we completed a logistics network based at Toyosu Market that integrated chilled and frozen logistics, and we have continued efforts during the fiscal year by restructuring routes, reducing the number of vehicles, and cutting delivery costs.」

「In the retail business, while affected by the spread of COVID-19, we worked to make operations more efficient under personnel allocations tailored to the new patterns of busy and slow periods at each store, while striving to create lively sales floors that emphasized seasonal products. We also worked to procure better products at lower prices and increase the proportion of "Shun-no-nama" products to differentiate ourselves through quality, while responding to higher purchasing and logistics costs.」

「In the retail business, while affected by the spread of COVID-19, we worked to make operations more efficient under personnel allocations tailored to the new patterns of busy and slow periods at each store, while striving to create lively sales floors that emphasized seasonal products. We also worked to procure better products at lower prices and increase the proportion of "Shun-no-nama" products to differentiate ourselves through quality, while responding to higher purchasing and logistics costs.」

「Although same-store sales in April 2020 were 79.7% of the previous year's level and those in May were 92.6%, partly because stores shortened their operating hours in response to the spread of COVID-19, customer traffic at existing stores recovered because we handle food products essential to daily life. Customers also showed a tendency to buy in larger quantities, and from June onward same-store sales exceeded approximately 100% of the previous year's level in each month. Performance recovered to the point that full-year same-store sales reached 103.5% of the previous year's level.」

「In particular, in response to the spread of COVID-19, we undertook measures to secure operating income despite the lack of sales growth, including reallocating personnel by store, reducing expenses through further improvements in store operating efficiency, and partially introducing remote work at headquarters. We also worked to maintain and strengthen operations while giving full consideration to preventing the spread of infection. Against this backdrop, because we handle food products essential to daily life, customer traffic at existing stores recovered from its April trough, and customers also showed a tendency to buy in larger quantities. From June onward, same-store sales exceeded 100% of the previous year's level in each month, and performance recovered to the point that same-store sales for the first 3 quarters of the consolidated fiscal year reached 102%.」

「Accordingly, we will seek to secure operating income by implementing measures to prevent the spread of COVID-19 at stores, reducing store operating expenses through the efficient allocation of personnel according to the trading conditions at each location, and reducing costs by reviewing purchasing terms and logistics systems in the new supply-and-demand environment.」

「In particular, in response to the spread of COVID-19, same-store sales in April 2020 fell sharply to 79.7% of the previous year's level because retail stores shortened their operating hours and restaurants temporarily closed. Nevertheless, we undertook measures to secure operating income despite the lack of sales growth, including reallocating personnel by store, further improving operating efficiency and reducing expenses, and partially introducing remote work at headquarters.」

「In the retail business, we pursued sales promotion through events such as direct-from-source fairs held in cooperation with fishing ports across Japan. Purchasing and sales worked closely together, and all stores undertook efforts to expand sales. The year-end shopping season was particularly strong, with same-store sales in December 2019 reaching 103.1% of the level in the same month of the previous year. Although sales were affected by the spread of COVID-19 in March 2020, these efforts enabled same-store sales for the fiscal year to remain at 100% of the previous year's level.」

「In the retail business, procurement and sales worked closely together and all stores worked to expand sales, including through sales promotions such as “Direct-from-the-Source Fairs” held in cooperation with fishing ports across Japan. In particular, the year-end sales season performed well, with December 2019 existing-store sales reaching 103.1% of the prior-year level. As a result, existing-store sales during the cumulative third-quarter consolidated period reached 101.1% of the prior-year level.」

「Against this backdrop, strengthening store operating capabilities and attracting customers are important. As labor shortages, including shortages of part-time and temporary staff, have become more severe, conditions do not permit unlimited store openings. It is therefore important to build an optimal store portfolio, or lean store network, that makes efficient use of limited management resources, including through negotiations with prospective store locations and closing existing stores.」

「Meanwhile, the ratio of SG&A expenses to sales declined as initiatives launched in earnest in the previous fiscal year to build a leaner store network began to produce results.」

「As a specific measure, we launched the “Petit Renewal” project in September 2017, bringing senior employees from each area and store staff together to comprehensively review existing stores, from product procurement and merchandising to employees' sales and processing skills, and create “shining stores” by harnessing the company's collective expertise. The project has substantially covered all of our existing stores, and we intend to repeat it from fiscal 2019 onward.」

「In the retail business, we promoted sales through events such as “Direct-from-the-Source Fairs” held in cooperation with fishing ports across Japan. In addition, procurement and sales worked closely together, and all stores worked to expand sales of products including bluefin tuna. Despite the effects of exceptionally hot weather and repeated typhoons during the second quarter, sales at existing stores during the cumulative second-quarter consolidated period increased 0.2% year on year.」

「In the retail business, we promoted sales through events such as “Direct-from-the-Source Fairs” held in cooperation with fishing ports across Japan. In addition, procurement and sales worked closely together, and all stores worked to expand sales of products including bluefin tuna. As a result, sales at existing stores during the cumulative first-quarter consolidated period increased 0.3% year on year.」

「As a specific measure, we launched the “Petit Renewal” project in September 2017, bringing senior employees from each area and store staff together to comprehensively review existing stores, from product procurement and merchandising to employees' sales and processing skills, and transform them into higher-level stores. The project is scheduled to run for more than 1 year, and will be implemented steadily in stages.」

「As a specific measure, we launched the “Petit Renewal” project in September, bringing senior employees from each area and store staff together to comprehensively review existing stores, from product procurement and merchandising to employees' sales and processing skills, and transform them into higher-level stores. The project is scheduled to run for approximately 1 year, and will be implemented steadily in stages.」

「As a specific measure, we launched the “Petit Renewal” project in September, bringing senior employees from each area and store staff together to comprehensively review existing stores, from product procurement and merchandising to employees' sales and processing skills, and transform them into higher-level stores. The project is scheduled to run for approximately 1 year, and will be implemented steadily in stages.」

「We believe that strengthening store operating capabilities is a key current issue. Competition among companies across retail formats is intensifying in the retail industry. In competition with food supermarkets, convenience stores and online retail, we will focus more than before on developing products and assortments that meet customer needs and improve service levels.」

「We believe that improving the profit structure of store operations is a key current issue. In competition with food supermarkets, convenience stores and online retail, we will focus more than before on developing products and assortments that meet customer needs, improve service levels and strengthen earning power.」

「Competition among companies across retail formats is intensifying in the retail industry. In response to competition not only from food supermarkets but also from online retail, we continue to develop products and assortments that meet customer needs more closely than before, improve service levels and strengthen earning power. To this end, we are working to raise employees' sales and processing skills, expand the roles of part-time and temporary staff, bring them up to full productivity quickly and improve productivity.」

「We believe that improving the profit structure of store operations is a key current issue. Competition among companies across retail formats is intensifying in the retail industry. In response to competition not only from food supermarkets but also from online retail, we will develop products and assortments that meet customer needs more closely than before, improve service levels and strengthen earning power.」