Aggressive investment in strong-performing channels and inventory clearance

「We accelerated promotional sales to optimize inventories toward the latter half of the season.」

「Meanwhile, the number of small-parcel deliveries handled by ヤマト ファッションサービス株式会社, a subsidiary that handles the Group's logistics operations, has increased each year as the e-commerce business has grown. The Company is also responding to changes in logistics operations by using the automated sorter, automated case erector and sealer, and camera-based authentication system introduced in recent years. Going forward, it will further improve productivity by promoting automation and labor saving through proactive investment.」

「E-commerce sales fell 4% year on year as sales opportunities were lost during the peak season, as in physical stores. Sales, which had continued to grow by double digits annually since the fiscal year ended August 2016, have temporarily slowed, but the key metric of total Crocodile membership continued to grow steadily, exceeding 1 million and reaching 1.16 million users.」

「We will continue to focus on acquiring members, developing and selling high-value-added products, securing inventory for sale and maintaining consistent communications, strengthening these initiatives to achieve steady growth for both Crocodile and CITERA.」

「The Crocodile app, introduced the year before last, continued to attract users steadily, taking membership beyond 600,000. Sales increased 33% year on year, while company-wide e-commerce sales, including the new business CITERA, continued to grow, increasing 25% year on year.」

「Meanwhile, ヤマト ファッションサービス株式会社, a subsidiary that handles the Group's logistics operations, is working to improve the accuracy of inventory management and shipping and receiving operations. It is also making proactive investments, including introducing a new automated case erector and sealer for the rapidly growing e-commerce business, to further improve operational productivity.」

「In addition to the automated sorters used to date, we are making active investments, including the introduction of new automatic carton erectors and sealers for the rapidly growing e-commerce business, with the aim of further improving operational productivity.」

「Meanwhile, e-commerce, which would not be an exaggeration to call the most important element of the channel strategy amid the COVID-19 pandemic, received active investment not only in marketing that effectively combines digital and analogue channels, but also in SNS advertising and the introduction of new services aimed at improving convenience, including the launch of Style UP, a new video-content service. Following the steady growth in users of the Crocodile app introduced last year, the target of 300,000 members was achieved in the first half, and membership continued to grow to approximately 440,000 at fiscal year-end. Sales also increased 21% year on year, while company-wide e-commerce sales, including the new CITERA business, continued to grow, rising 25% year on year.」

「As a result of active investment in marketing that effectively combines digital and analogue channels, the introduction of new services aimed at improving convenience, and the launch of the Crocodile app, the number of Crocodile members reached approximately 270,000, up 37% year on year. Crocodile sales rose 31% year on year, while company-wide e-commerce sales, including the new business, continued to grow strongly, increasing 34% year on year.」

「In addition, amid the COVID-19 pandemic, we are actively investing in channels such as e-commerce that are performing well, while focusing on appropriate inventory liquidation and pursuing medium- to long-term initiatives in parallel with a view to the post-pandemic period.」