Food Supermarket Store Network Restructuring and Improvements in Items per Basket and Profitability

「Although the impact of the withdrawal from the food supermarket business in the previous fiscal year was present,」

「The company has decided to exit this business during the current fiscal year, with operations at all stores scheduled to end in November, and is proceeding with the transfer and closure of stores. Following the closure of 23 stores since September of the previous fiscal year, the number of operating stores stood at 11 at the end of the interim consolidated accounting period.」

「The company has decided to exit this business during the current fiscal year and is proceeding with the transfer and closure of stores. Following the closure of 17 stores since September of the previous fiscal year, the number of operating stores stood at 17 at the end of the first quarter.」

「The food supermarket business is systematically proceeding with store transfers and closures in order to complete its exit from the business by the end of January 2025.」

「However, in addition to continued intensifying competition, the closure of 5 unprofitable stores also affected results. Sales in this business segment declined 2.6% year on year to ¥11.761 billion, while operating loss narrowed to ¥489 million from an operating loss of ¥517 million in the same period of the previous fiscal year.」

「To improve productivity, the company promoted stronger centralized supply of seafood products and a hub-and-spoke store model in which prepared foods are supplied from large stores to small stores.」

「To improve productivity, the company promoted stronger centralized supply of seafood products and a hub-and-spoke store model in which prepared foods are supplied from large stores to small stores.」

「As announced in the “Notice Regarding the Execution of a Memorandum of Basic Agreement for the Transfer of Shares in a Consolidated Subsidiary” dated 31 October 2022, the company planned to transfer all shares it held in Toho Store Co., Ltd. between February 2023 and the end of March 2023.」

「To establish low-cost store operations, the company began operating an agricultural products center in March and promoted a hub-and-spoke store model in which large stores process prepared foods and other products and supply them to nearby small stores.」

「To establish low-cost store operations, the company began operating an agricultural products center in March and promoted a hub-and-spoke store model in which large stores process prepared foods and other products and supply them to nearby small stores.」

「The company is also focusing on establishing a low-cost store model, including by promoting the centralization of operations, as part of its cost-control efforts.」

「To revitalize the business, the company renovated 2 stores, the Kamitakamaru store (Tarumi-ku, Kobe) in April and the Kariba Plaza store (Nishi-ku, Kobe) in October, and closed the Shimoyamate store (Chuo-ku, Kobe) in July.」

「To revitalize the business, the company renovated the Kamitakamaru store (Tarumi-ku, Kobe) in April and closed the Shimoyamate store (Chuo-ku, Kobe) in July.」

「As part of its efforts to reduce food waste, the company began selling the new “Maruyanagi Mottainai-ya” series in February in collaboration with local company Maruyanagi Oguraya Co., Ltd. (Higashinada-ku, Kobe). It also strengthened its business base by renovating the Kamitaka-maru store (Tarumi-ku, Kobe) in April.」

「To strengthen its business base, the company opened 1 new store for the first time in approximately 2 years, the Hanshin-Daishi Station store (Nada-ku, Kobe) in January, and renovated 3 stores, the Nishinagata store (Nagata-ku, Kobe) in June and the Hirano-Gion store (Hyogo-ku, Kobe) and Port Island store (Chuo-ku, Kobe) in October. It also closed 1 store, the Kozukayama store (Tarumi-ku, Kobe), in January.」

「The company placed greater emphasis on maintaining the freshness of fresh foods and prepared foods and worked to improve product quality, including by strengthening its small-portion “Chotto de Een!” series. It also renovated 3 stores, namely the Nishinagata store (Nagata-ku, Kobe) in June and the Hirano-Gion store (Hyogo-ku, Kobe) and Port Island store (Chuo-ku, Kobe) in October, thereby revitalizing the business.」

「To improve profitability, the company reviewed and rationalized its product range, optimized ordering quantities, rigorously controlled losses, and continued pursuing cost control.」

「To improve profitability, the company reviewed and rationalized its product range and ordering quantities, strengthened loss controls, and continued pursuing productivity improvements, including by automating part of its data-entry operations.」

「To strengthen its business base, the company opened the Rokko Island store in March. To improve profitability, it strengthened loss controls and continued pursuing productivity improvements, including by introducing an automatic ordering system incorporating demand forecasts in the dry grocery departments of small stores in July.」

「To improve productivity, the company began streamlining the operations of small stores, including by centralizing some vegetable-processing operations.」

「At Toho Store Co., Ltd., the company completed the opening of the Rokko Island store (Higashinada-ku, Kobe) in March 2019, one of the 2 new stores planned at the end of the previous consolidated fiscal year.」

「To strengthen its business base, the company opened the Kariba Plaza store (Nishi-ku, Kobe) in June. It also renovated the Shijimi Station Front store (Miki, Hyogo) in June and the Takasago store (Takasago, Hyogo) in September, enhancing the fresh-food sections and introducing the in-store bakery “Pan Kobo Komugiya.”」

「To strengthen its business base, the company opened the Kariba Plaza store (Nishi-ku, Kobe) in June. It also renovated the Shijimi Station Front store (Miki, Hyogo) in June and the Takasago store (Takasago, Hyogo) in September, enhancing the fresh-food sections and introducing the in-store bakery “Pan Kobo Komugiya.”」

「In June, the company opened the Kariba Plaza store in Nishi Ward, Kobe, and renovated the Shijimi Station-front store in Miki, Hyogo Prefecture, in the same month, introducing its third in-store bakery, “Pan Kobo Komugiya.”」

「To restore performance, the company proceeded with the closure of unprofitable stores and pursued initiatives to strengthen its corporate structure, including expanding the departments covered by automatic ordering to improve store operating efficiency and rigorously controlling costs.」

「The company also pursued initiatives to strengthen its corporate structure, including closing unprofitable stores, reviewing operating hours, reforming logistics, and rigorously controlling costs. In October, it expanded the departments covered by automatic ordering to further improve productivity.」

「The company also pursued initiatives to strengthen its corporate structure, including closing unprofitable stores, reviewing operating hours, reforming logistics, and rigorously controlling costs. Although these measures produced some results, sales in this business segment declined 6.3% year on year to ¥10.697 billion, reflecting the impact of closing 9 stores in the previous fiscal year and the first half of the current fiscal year, among other factors.」

「The company opened the Toho Store BiVi Tsuchiyama store (Kako District, Hyogo) in April, while closing the Beppu store (Kakogawa, Hyogo) in March and the Iku ga Oka store (Ono, Hyogo) and Fujie store (Akashi, Hyogo) in September.」

「In April, the company opened the Toho Store BiVi Tsuchiyama store (Kako District, Hyogo), while closing the nearby Beppu store (Kakogawa, Hyogo) in March. During the second half of the fiscal year, the company will continue value-focused store operations while reviewing its product assortment and merchandising to increase the number of items purchased per visit, and will pursue initiatives to reduce costs. It also plans to close 3 unprofitable stores.」