Building a profitable model for facility-based stores through the Smart Store business’s new operating style

「In its store operations, the Company continued to expand relatively small stores, mainly within facilities, under the “Poplar” and “Seikatsu Saika” brands. It also promoted 24-hour operations through unmanned service using cashless and self-payment systems, seeking to improve user convenience while controlling costs and expand sales and profit.」

「In its store operations, the Company continued to expand relatively small stores, mainly within facilities, under the “Poplar” and “Seikatsu Saika” brands. It also promoted 24-hour operations through unmanned service using cashless and self-payment systems, seeking to improve user convenience while controlling costs and expand sales and profit.」

「Specifically, the Company promoted the introduction of an “Unmanned Operations Mode” using self-payment systems at POS registers. After staffed operating hours end, this extends operating hours into nights and holidays while controlling operating costs, thereby improving franchisee sales and profitability.」

「At stores within facilities, the Company switched some periods that had previously been outside operating hours to unmanned operations using self-payment only, in order to control costs such as labor expenses. This has enabled it to extend operating hours at low cost.」

「The Company developed payment terminals that are smartphone-sized yet support various cashless payment methods, enabling low-cost operation, and began rolling out small unmanned convenience stores as franchises.」

「The Company opened 5 conventional stores within facilities and 7 Smart Self stores, which are small unmanned convenience stores of approximately 1 to 5 tsubo installed in parts of business premises. As a result, the number of stores at period-end was 277, compared with 273 at the end of the same period of the previous year. The Company has also developed and introduced smartphone-sized payment terminals capable of handling various cashless payment methods, enabling it to begin installing small unmanned convenience stores at lower cost than before.」

「For new openings, we opened 13 staffed stores, mainly at hospitals and business establishments. We also continued to expand the scale and geographic coverage of Smart Self stores, which are small unmanned convenience stores of approximately 1 to 5 tsubo installed in part of an office or other business facility, and opened 24 new stores during the consolidated fiscal year. As a result, the number of stores at period-end was 225 staffed stores and 52 unmanned stores, for a total of 277 (262 at the end of the same period of the previous year).」

「In addition, the Smart Self business, which installs an unmanned mini convenience store of approximately 1 to 5 tsubo in a corner of a business facility, continued to expand strongly, with 20 new stores opened during the fiscal year, bringing the number of stores at period-end to 48.」

「Next, regarding the Smart Self business, which installs an unmanned mini convenience store of approximately 1 to 5 tsubo in a corner of a business facility, we opened 15 new stores during the fiscal year, mainly in Hiroshima, bringing the number of stores at period-end to 43.」

「As a new strategy to establish sales locations near customers, the Company opened 10 new Smart Self stores during the cumulative first quarter. Smart Self consists of unmanned mini convenience stores of approximately 1 to 5 tsubo installed in parts of business premises. Drawing on its experience to date, the Company operates these stores under the control of a staffed hub store, including by opening stores to meet diverse needs across large factory sites.」

「As a new strategy to establish sales locations near customers, the Company launched the Smart Self business, installing unmanned mini convenience stores of approximately 1 to 5 tsubo in parts of business premises, and opened 27 stores during the consolidated fiscal year.」

「As a new strategy of establishing sales space near customers, we launched the Smart Self business, which installs an unmanned mini convenience store of approximately 1 to 5 tsubo in a corner of a business facility, and opened 18 stores during the cumulative third-quarter period. Based on the results accumulated since launch, we are seeking to increase sales by installing fixtures and selecting merchandise suited to the needs associated with each location and environment. We are also considering reducing initial investment and are planning to develop the format as a new franchise store model.」

「As a new strategy to establish sales locations near customers rather than simply waiting for them to visit stores, the Company launched the Smart Self business, installing unmanned mini convenience stores of approximately 1 to 5 tsubo in parts of business premises, and opened 12 stores during the cumulative second quarter. Six months after launch, it has accumulated know-how and performance data on locations, product ranges suited to each situation and needs, and the fixtures that can be installed. It is now expanding the business, including through collaboration with external operators.」

「The sales division sought to expand sales by capitalizing on the strength of its multi-point offering combining “Rakuten Point” and “d POINT.” It conducted alternating monthly “Instant Point-Rebate Campaigns” and ran the “ONE BUY ONE” promotion weekly, under which customers purchasing designated products with manufacturer sponsorship were guaranteed to receive popular products. The Company also expanded delivery services to capture stay-at-home demand and broadened its store-opening options by diversifying store formats. In particular, as a new strategy to establish sales locations near customers rather than simply waiting for them to visit stores, it launched the Smart Self business, installing unmanned mini convenience stores of approximately 1 to 5 tsubo in parts of business premises, and opened 4 stores during the cumulative first quarter. As a result, revenue from the Smart Store business was ¥1,249 million, down 30.2% year on year, while the operating loss narrowed to ¥120 million from ¥499 million in the same period of the previous year.」

「In the sales division, the Company worked to reduce store operating costs by reviewing store-visit methods and digitizing communication tools with franchisees. To capture demand from stay-at-home consumption, it introduced delivery services and sought to expand sales by diversifying store-opening formats. Departmental profitability improved substantially as a result of a significant reduction in unprofitable company-operated stores.」

「In the sales division, the Company worked to reduce store operating costs by reviewing store-visit methods and digitizing communication tools with franchisees. To capture demand from stay-at-home consumption, it introduced delivery services and sought to expand sales by diversifying store-opening formats.」

「In the sales division, the Company reviewed store-visit methods and digitized communication tools with franchisees to reduce store operating costs. To offset the decline in sales caused by COVID-19, it introduced delivery services and diversified store-opening formats. In the manufacturing and wholesale divisions, it improved profitability by raising utilization through the consolidation and streamlining of factories and centers and reducing logistics costs through flexible reconfiguration of delivery routes.」

「The Company worked to prevent gaps in functionality, expand its product range and improve departmental efficiency by rebuilding its product procurement structure and specializing in buying suited to stores within facilities. In the manufacturing and wholesale divisions, it improved profitability by raising utilization through the consolidation and streamlining of factories and centers, and reducing logistics costs through flexible reconfiguration of delivery routes.」

「In the Smart Store business, centered on the operation of the Company’s existing proprietary-brand stores, “Poplar,” “Seikatsu Saika,” “Three Eight” and “Kurashi House,” the Company has already launched a new “New Style Operations” model suited to stores within facilities, which account for most of the business following the recent restructuring. By reviewing store visits by sales employees and digitizing communication tools with franchisees, it is significantly reducing store operating costs. It is also working to establish a reliable profitable business model for stores within facilities by reducing logistics costs through a review of store delivery operations and flexible reconfiguration of delivery routes, and by rebuilding its product procurement structure.」