Advancing joint businesses and next-generation initiatives with ARCS COMPANY, LIMITED and VALOR HOLDINGS CO., LTD.

「Within the New Japan Supermarket Alliance, formed through the capital and business alliance among the Company, 株式会社アークス and VALOR HOLDINGS CO.,LTD. on 25 December 2018, the Company formed 5 subcommittees covering products, operational reform, sustainability, next-generation business development, and management. To create synergies and further enhance corporate and shareholder value, the subcommittees conduct joint initiatives such as product development, expense reductions, and human-resource development, and hold top-management reporting meetings 3 times a year.」

「The New Japan Supermarket Alliance formed by our company, 株式会社アークス and VALOR HOLDINGS CO.,LTD. continues joint initiatives in product development, cost reduction and human-resource development through 5 subcommittees: products, business reform, sustainability, next-generation business development and management.」

「The New Japan Supermarket Alliance formed by our company, 株式会社アークス and VALOR HOLDINGS CO.,LTD. continues to advance various initiatives through 5 subcommittees, including joint procurement planning for products, cost reductions through joint sourcing of materials, and discussions of common retail-industry issues and sharing of expertise.」

「The New Japan Supermarket Alliance formed by our company, 株式会社アークス and VALOR HOLDINGS CO.,LTD. continues joint initiatives in product development, cost reduction and human-resource development through 5 subcommittees: products, business reform, sustainability, next-generation business development and management.」

「Although we entered into a basic agreement regarding a capital and business alliance dated 3 April 2023, we terminated the alliance as of 31 October 2023 and, on the same date, transferred to VALOR HOLDINGS CO.,LTD. the 1,000 shares of Valor Financial Services acquired under the basic agreement.」

「The Company and VALOR HOLDINGS CO.,LTD. entered into a basic agreement on a capital and business alliance to enhance the corporate value of both groups by mutually providing and utilizing their respective know-how and management resources and generating operational synergies. The Company acquired shares in バローフィナンシャルサービス, a subsidiary of VALOR HOLDINGS CO.,LTD. Number of shares acquired: 1,000 shares; consideration paid: ¥50,000,000; transfer date: 3 April 2023.」

「Within the New Japan Supermarket Alliance, the Company formed 5 subcommittees covering products, operational reform, sustainability, next-generation business development, and management. To create synergies and further enhance corporate and shareholder value, the subcommittees conduct joint initiatives such as product development, expense reductions, and human-resource development, and hold top-management reporting meetings 3 times a year.」

「The Company reviewed product delivery routes and consolidated logistics centers from 8 locations to 3 within the Marumiya Store Group, among other measures, to improve logistics profitability, and began operating a new logistics structure in June 2022.」

「The Company reviewed product delivery routes and consolidated logistics centers from 8 locations to 3, among other measures, and began operating a new logistics structure in June 2022. As a result, logistics profitability is expected to improve by ¥38 million as of the end of February 2023, while profit is expected to increase by ¥27 million from usage fees for lending logistics fixtures.」

「The New Japan Supermarket Alliance formed by our company, 株式会社アークス and VALOR HOLDINGS CO.,LTD. continues to advance initiatives through 4 subcommittees, including joint procurement, promotions and sales, cost reductions through joint sourcing of materials, sharing expertise on operational improvements and centralization through DX, joint SDG initiatives, and research into smart stores.」

「The alliance continues to pursue joint procurement, joint promotions, joint sales, and reductions in the cost of consumable materials, fixtures and equipment, while also beginning information sharing aimed at promoting digital transformation and improving operational efficiency, together with initiatives to promote the SDGs.」

「The New Japan Supermarket Alliance formed by our company, 株式会社アークス and VALOR HOLDINGS CO.,LTD. continues to work on joint procurement, joint promotions and joint sales, reducing the cost of consumable materials and store fixtures, sharing information to promote DX and improve operational efficiency, and promoting the SDGs.」

「The New Japan Supermarket Alliance, formed by the Company, 株式会社アークス and VALOR HOLDINGS CO.,LTD., continues to pursue joint procurement, joint promotions, joint sales, and reductions in the cost of consumable materials, fixtures and equipment, and has also begun initiatives to promote the SDGs.」

「The New Japan Supermarket Alliance formed by our company, 株式会社アークス and VALOR HOLDINGS CO.,LTD. continues to advance various initiatives through 4 subcommittees, including joint procurement, joint promotions and sales of jointly developed private-label products.」

「In addition, to establish smart stores through digital transformation, the Company began operating shopping carts equipped with checkout functions developed by Retail AI at the Aruku Itozu store in Kokurakita-ku, Kitakyushu, in July 2020, and has confirmed certain benefits from the rollout.」

「Under the New Japan Supermarket Alliance formed through the capital and business alliance among the Company, 株式会社アークス and VALOR HOLDINGS CO.,LTD., the product subcommittee has conducted joint procurement in each fresh-food category, sold jointly developed products in the prepared-food category, and sold manufacturer tie-up products in the processed-food category. The alliance launched the No. 1 Project, aimed at achieving Japan's top sales performance, and has expanded its activities. In addition, the Company has undertaken initiatives in partnership with TRIAL Holdings,Inc. to establish smart stores through digital transformation. To improve customer service by increasing checkout productivity, addressing cashier staffing shortages, providing customers with useful information while shopping, and shortening shopping time through faster checkout, the Company began operating a shopping cart equipped with checkout functions at the Aruku Itozu store in Kokurakita-ku, Kitakyushu, in July 2020, and is conducting a pilot.」

「Regarding intercompany collaboration centered on the New Japan Supermarket Alliance established through the capital and business alliance between our company, 株式会社アークス and VALOR HOLDINGS CO.,LTD., new objectives continue to be set and initiatives advanced through 4 subcommittees: products, operations, indirect functions and next-generation business development.」

「The Partnership Promotion Committee was launched in January 2019, and 4 subcommittees covering products, operations, indirect functions and next-generation business development were established. As each pursued its initiatives, various alliance benefits were generated as described below.」

「We are currently promoting initiatives to generate benefits by setting specific items in the Product, Operations, Indirect Functions and Next-Generation Business Development subcommittees.」

「In January 2019, the New Japan Supermarket Alliance Partnership Promotion Committee was launched, and 4 subcommittees covering products, operations, indirect functions and next-generation business development were established to begin detailed discussions.」

「① Strengthening existing areas: mutual sharing of information on local products, production regions and business partners; joint purchasing of materials, supplies and store fixtures; sharing expertise in store development and operations; sharing expertise in logistics and distribution-center operations; joint development of peripheral retail businesses such as sports clubs; sharing expertise in recruitment and employee training; and other initiatives. ② Initiatives for the next generation: joint research into the card business and consideration of integration; joint research including integration of back-office operations; consideration of joint operation of financial and payment businesses; and joint research into new technologies such as smart stores, or next-generation stores; and other initiatives.」