Establishing the confectionery merchandise sales business and expanding mass-production capabilities and sales channels

「Accordingly, the Company will pursue sustainable growth by improving production capacity through the establishment of a new production facility, Cafe ＆ Factory HACHIOJI, and expanding the market through new store openings. The new facility is planned not merely as a production facility but as an experiential production facility with an attached café, targeted to begin operations around mid-August 2026.」

「As a result, merchandise division sales increased to ¥818 million, up 8.5% year on year.」

「Accordingly, the Company will pursue sustainable growth by improving production capacity through the establishment of a new production facility and expanding the market through new store openings. The new facility is planned not merely as a production facility but as an experiential production facility with an attached café, targeted to begin operations in early summer 2026.」

「In September 2024, the Company opened a new Atelier Ukai confectionery store at Gransta Tokyo, an in-station commercial facility at JR East Tokyo Station, regarded as Tokyo's main gateway, making it available to even more customers. Atelier Ukai Tama-Plaza closed at the end of August of the same year upon expiration of its contract.」

「At Atelier Ukai Takashimaya Kyoto Store and Atelier Ukai Takashimaya Osaka Store, the merchandise division's core confectionery business has seen a pause in sales growth following the opening-driven growth through the previous fiscal year. Nevertheless, the Company is working to secure stable earnings by improving its products to raise customer satisfaction and actively strengthening sales at department-store events nationwide, wholesale sales and e-commerce sales with a view to further increasing brand awareness.」

「At Atelier Ukai Takashimaya Kyoto Store and Atelier Ukai Takashimaya Osaka Store, the merchandise division's core confectionery business has seen a pause in sales growth following the opening-driven growth through the previous fiscal year. Nevertheless, the Company is working to secure stable earnings by improving its products to raise customer satisfaction and actively strengthening sales at department-store events nationwide, wholesale sales and e-commerce sales with a view to further increasing brand awareness.」

「In confectionery, the merchandise division's core business, the Company is working to secure stable earnings by improving its products to raise customer satisfaction and actively strengthening sales at department-store events nationwide, wholesale sales and e-commerce sales with a view to further increasing brand awareness. In the food division, which is being developed as a new business format to drive growth, the Company has used flash-freezing technology that preserves taste and freshness for extended periods to develop products that chefs who have served as head chefs at the Company's restaurants can use to easily recreate restaurant dishes at home. The product lineup has been expanded and sales launched as a frozen-food series through UKAI GOURMET DELI (Ukai Gourmet Deli), an online shop for gourmet foods available for delivery that grand-opened in June 2023.」

「In the food division, which is being developed as a new business format to drive growth, the Company has used flash-freezing technology that preserves taste and freshness for extended periods to develop products that chefs who have served as head chefs at the Company's restaurants can use to easily recreate restaurant dishes at home. The product lineup has been expanded and sales launched as a frozen-food series through UKAI GOURMET DELI (Ukai Gourmet Deli), an online shop for gourmet foods available for delivery that grand-opened in June 2023. Going forward, the Company will establish and grow the brand by strengthening promotional activities, including holding events featuring a combination of confectionery, tofu and frozen products as Ukai gourmet offerings, while rolling out attractive new products in sequence.」

「In May 2022, the merchandise division opened Atelier Ukai Takashimaya Osaka Store, a new confectionery store, in Osaka-Namba. Replacing Atelier Ukai Hankyu Umeda Main Store, which closed at the end of March of the same year upon expiration of its contract, it serves as a new base for promoting the Company's brand from Osaka and is visited by very many customers every day.」

「In May 2022, the merchandise division opened Atelier Ukai Takashimaya Osaka Store, a new confectionery store, in Osaka-Namba. Replacing Atelier Ukai Hankyu Umeda Main Store, which closed at the end of March of the same year upon expiration of its contract, it serves as a new base for promoting the Company's brand from Osaka, and is visited by very many customers every day. Sales at Atelier Ukai Ecute Shinagawa substantially exceeded those of the same quarter of the previous year as customer traffic recovered following the easing of restrictions on activities and other measures. E-commerce and external sales, which saw increased demand during the pandemic, also remained strong at levels similar to the previous year. In September of the same year, in response to the recent rise in raw-material and other costs, the Company revised prices and began charging for some paper bags to maintain quality and service.」

「In May 2022, the merchandise division opened Atelier Ukai Takashimaya Osaka Store, a new confectionery store, in Osaka-Namba. Replacing Atelier Ukai Hankyu Umeda Main Store, which closed at the end of March of the same year upon expiration of its contract, it serves as a new base for promoting the Company's brand from Osaka, and is visited by very many customers every day. Together with Atelier Ukai Takashimaya Kyoto Store, which opened in November of the previous year, it made a substantial contribution to sales growth. As a result, the merchandise division recorded sales of ¥377 million, up 15.9% year on year.」

「The Company increased sales by opening Atelier Ukai Takashimaya Kyoto Store in November 2021, its second store in western Japan. Overall, the merchandise division substantially exceeded pre-pandemic sales levels. Atelier Ukai Hankyu Umeda Main Store closed at the end of March 2022 upon expiration of its contract.」

「In November of the same year, the Company opened a new Atelier Ukai confectionery store at Takashimaya Kyoto Store in Shimogyo-ku, Kyoto, expanding the chain to 3 stores in the Kanto region and 1 store in western Japan and making it available to even more customers.」

「Meanwhile, the merchandise division, which manufactures and sells confectionery products, remained strong despite the continuing impact of the infection. In particular, e-commerce sales grew in response to demand from customers who found it difficult to shop directly at stores while staying home. External sales, including sales at department-store events, also increased as the division actively participated in response to requests to hold events. With these contributions, sales remained at approximately the same level as in a typical year.」

「Meanwhile, the merchandise division, which manufactures and sells confectionery products, remained strong despite the continuing impact of the infection. In particular, e-commerce sales grew in response to demand from customers who found it difficult to shop directly at stores while staying home. External sales, including sales at department-store events, also increased as the division actively participated in response to inquiries from business partners. With these contributions, sales remained at approximately the same level as in a typical year.」

「However, from the second quarter onward, many sales channels, including Atelier Ukai Hankyu Umeda Main Store and e-commerce and external sales, performed above the same period of the previous year and remained strong. In particular, e-commerce sales grew in response to demand from customers who found it difficult to shop directly at stores while staying home. This contribution also meant that the decline in merchandise sales was smaller than that of the Company's other businesses.」

「Meanwhile, e-commerce sales grew as they benefited from demand among people who found it difficult to purchase products directly at stores because of requests to refrain from going out. As a result, the decline in revenue in the retail business was smaller than in the company’s other businesses.」

「Meanwhile, revenue in the retail business increased through sales at existing permanent stores, our e-commerce site and department-store events, with an additional contribution from the new Atelier UKAI Hankyu Umeda Main Store resulting in a substantial increase in revenue compared with the previous fiscal year.」

「Meanwhile, revenue in the retail business increased through sales at existing permanent stores, our e-commerce site and department-store events, with a further contribution from the new Atelier UKAI Hankyu Umeda Main Store resulting in a substantial increase in revenue compared with the same quarter of the previous year.」

「Under “Promoting growth in the retail business,” we opened a new Atelier UKAI store in April of the same year at Hankyu Umeda Main Store in Kita-ku, Osaka, Osaka Prefecture. This new “Atelier UKAI Hankyu Umeda Main Store” was our first permanent store in western Japan and has performed well, attracting many customers every day. It has also had a positive spillover effect on our e-commerce site.」

「Under “Promoting growth in the retail business,” we constructed a new building at the Atelier UKAI Hachioji workshop in October 2018, a production base for baked goods, the main products of the retail business, to strengthen production capacity. This enabled mass production without compromising quality, and in February 2019 we decided to open “Atelier UKAI Hankyu Umeda Main Store,” the first permanent store in western Japan, and proceeded with preparations for its opening on 17 April of the same year.」

「Under “Promoting growth in the retail business,” we constructed a new building at the Atelier UKAI Hachioji workshop in October 2018, a production base for baked goods, the main products of the retail business, to strengthen production capacity.」

「The main factors were cash outflows of ¥363 million for repayment of long-term borrowings and ¥93 million for dividend payments, offset by ¥300 million from a net increase in short-term borrowings and ¥300 million in funds raised to construct a new building at the Atelier UKAI Hachioji workshop.」

「The retail business also posted higher revenue than in the same quarter of the previous year, due in part to contributions from “Atelier UKAI ecute Shinagawa” and “Atelier UKAI Trie Keio Chofu.”」

「In the retail business, we opened “Atelier UKAI ecute Shinagawa” in Takanawa, Minato, Tokyo, in July 2017 and “Atelier UKAI Trie Keio Chofu” in Chofu, Tokyo, in September of the same year. This brought the number of permanent stores of Atelier UKAI, the retail business’s main brand, to 3.」

「Under “Retail growth,” we opened permanent stores so that Atelier UKAI products could be purchased more conveniently, at ecute Shinagawa, the commercial facility inside JR East Shinagawa Station in Takanawa, Minato, Tokyo, which reopened in July 2017, and at Trie Keio Chofu, the commercial facility directly connected to Chofu Station on the Keio Line in Chofu, Tokyo, which opened in September of the same year.」

「Under “Retail growth,” we opened permanent stores so that Atelier UKAI products could be purchased more conveniently, at ecute Shinagawa, the commercial facility inside JR East Shinagawa Station in Takanawa, Minato, Tokyo, which reopened in July 2017, and at Trie Keio Chofu, the commercial facility directly connected to Chofu Station on the Keio Line in Chofu, Tokyo, which opened in September of the same year.」

「Under “Retail growth,” we decided to open new Atelier UKAI Western confectionery shops. In April 2017, we decided to open a store at “Trie Keio Chofu,” a commercial facility directly connected to Chofu Station on the Keio Line in Chofu, Tokyo, scheduled to open in autumn 2017. In May of the same year, we decided to open a store at “ecute Shinagawa,” a commercial facility inside the station in Takanawa, Minato, Tokyo, scheduled to reopen on 20 July 2017.」

「As a specific measure, we will open new stores of “Atelier UKAI,” the Western confectionery shop operated by the company. We decided to open a store in “Trie Keio Chofu,” a commercial facility directly connected to Chofu Station on the Keio Line and under construction in Chofu, Tokyo, scheduled for autumn 2017. Alongside this new store, we will further develop attractive new products and enhance our sales capabilities. We will also actively open event-based outlets at commercial facilities and elsewhere so that more people become familiar with our retail brand, thereby steadily growing the retail business.」

「In confectionery, we actively sold products as store souvenirs and through external sales and limited-time shops, resulting in steady sales growth and revenue of ¥8,739 million, up 1.4% year on year.」

「In confectionery, which is being developed as the main pillar of the retail business, we actively pursued external sales and sales through limited-time shops in addition to selling souvenir products at stores. As a result, sales grew steadily and revenue was ¥5,542 million, up 1.3% year on year.」

「In confectionery, which is being developed as the main pillar of the retail business, sales grew steadily, mainly through sales of souvenir products at stores. As a result, revenue was ¥2,853 million, up 1.4% year on year.」

「The retail business was established as part of the organizational changes in February 2016 to further enhance the brand value of our retail products, including confectionery, and to enable rapid and accurate decision-making in business development. Confectionery, the main pillar of the retail business, established a workshop in April 2015 and has been working to expand production capacity and develop new products. To grow it into a business on a par with our Japanese and Western food businesses, we will steadily establish further mass-production capacity and expand sales channels based on the issues identified. We will also develop products other than confectionery and focus on creating a more user-friendly mail-order system, with the aim of establishing the retail business as a pillar of our growth strategy.」