Profit growth through improved sales efficiency in the wholesale business

「As existing business partners declined and sales-floor space contracted, the Company reviewed its sales methods and channels, pursued collaboration with companies in other industries and other brands, and worked to develop new businesses and business partners.」

「External e-commerce marketplaces performed well, led by the men’s shoe brands “REGAL,” “REGAL Casual” and “Kenford,” with sales up 21.3% year on year」

「At our core department-store locations, the space allocated to business categories has been trending downward at each sales floor amid the shift toward casualization. Casual shoes from the high-value-added men’s shoe brand “REGAL” and the reasonably priced, versatile women’s shoe brand “R.Dot” performed steadily. Meanwhile, external e-commerce marketplaces, which have a high sales mix of men’s shoes, performed well, led by “REGAL,” “REGAL Casual” and “Kenford,” with sales up 22.9% year on year」

「However, as a result of efforts to reduce distribution discounts by reviewing sales methods for customers to improve profitability and develop new customers as a means of creating new demand, operating profit was ¥255 million, up 187.6% year on year.」

「At local shopping malls, specialty shoe stores and large chain stores, consumers are also showing a tendency to economize and favor lower prices due to rising consumer prices. Our mid-priced products continue to face difficulties, and in response we are newly proposing the women’s casual shoe brand “R.Dot” and “View Fit,” basic shoes for adults with an emphasis on Japanese manufacturing.」

「In addition to development proposals for corporate OEM and other products, development of new customers in new business formats and industries, and stronger initiatives involving external e-commerce marketplaces, total sales increased 6.8% year on year, while profits are also on a recovery trend.」

「We have also been actively making development proposals for corporate OEM and other products, developing new customers in new business formats and industries, collaborating with competitors, apparel companies and influencers, and holding events with select shops, gradually increasing new sales channels and customers.」

「We have also been actively making development proposals for corporate OEM and other products, developing new customers in new business formats and industries, and pursuing collaboration with competitors and influencers, but at present these efforts have not resulted in a significant improvement in profitability.」

「In the shoe wholesale business, amid a decline in customers and the downsizing of sales floors, we have worked to review sales methods for existing customers to improve profitability and develop new customers as a means of creating new demand. / We have also gradually been making development proposals for corporate OEM and other products and developing new customers in new business formats and industries, but at present these efforts have not been sufficient to offset the decline in sales.」

「In addition, leveraging our strengths as a shoe manufacturer, we will seek to expand our sales channels beyond existing customers, whose numbers are declining, by proposing the planning, development and manufacture of OEM products and other offerings for various companies.」

「Going forward, we will further optimize and improve the efficiency of the brands we carry and the number of items offered, improve inventory efficiency and review our sales and promotional methods to focus on improving profitability, while proposing products that address changes in lifestyles and customer needs. In addition, leveraging our strengths as a shoe manufacturer, we will seek to expand our sales channels beyond existing customers, whose numbers are declining, by proposing the planning, development and manufacture of OEM products and other offerings for various companies.」

「In addition, leveraging our strengths as a shoe manufacturer, we will seek to develop sales channels beyond existing customers, whose numbers are declining, by proposing the planning, development and manufacture of OEM products and other offerings for various companies.」

「Going forward, we will propose products suited to diversifying lifestyles and business-casual trends, further optimize and improve the efficiency of the brands we carry and the number of items offered, and promptly improve inventory efficiency and review our sales and promotional methods, focusing on improving profitability. In addition, leveraging our strengths as a shoe manufacturer, we will seek to expand our sales channels beyond existing customers, whose numbers are declining, by proposing the planning, development and manufacture of OEM products and other offerings for various companies.」

「Going forward, we will propose products suited to diversifying lifestyles and business-casual trends, further optimize and improve the efficiency of the brands we carry and the number of items offered, and promptly improve inventory efficiency and review our sales and promotional methods, focusing on improving profitability. In addition, leveraging our strengths as a shoe manufacturer, we will seek to expand our sales channels beyond existing customers, whose numbers are declining, by proposing the planning, development and manufacture of OEM products and other offerings for various companies.」

「③ The wholesale business will pursue profits by improving sales efficiency.」

「Over the medium term, we will address the following matters as management strategies. ③ The wholesale business will pursue profits by improving sales efficiency.」