Rebuilding sales floors and product categories through product reform

「Among private-label products, large home appliances such as air conditioners, consisting of manufacturers' products sold as models exclusive to the company, recorded significant sales growth. Sales of consumables such as loungewear, kitchen goods and pet sheets also increased, but private-label sales were limited to 103.1% of the same period of the previous year, while their share of total revenue fell 0.3 percentage points to 23.3%.」

「Among private-brand (PB) products, sales of home appliances such as air conditioners, washing machines and refrigerators increased substantially after products manufactured by appliance makers were sold as models exclusive to the Company. In addition, efforts to sell new products and renew existing products in categories such as food, kitchen supplies and apparel resulted in PB sales reaching 114.7% of the prior-year level, while the PB sales mix increased by 1.3 percentage points to 22.2%.」

「Among private-label products, large home appliances such as air conditioners, refrigerators and washing machines, consisting of manufacturers' products sold as models exclusive to the company, recorded significant sales growth. Sales of consumables such as kitchen goods and food also increased, resulting in private-label sales equal to 118.4% of the same period of the previous year. Their share of total revenue increased 2.0 percentage points from the same period of the previous year to 23.6%.」

「Among private-label products, large home appliances developed as revival models using older materials from appliance manufacturers and sold as models exclusive to the company recorded significant sales growth. In addition, sales of new paper products and food items increased, and existing products were renewed, resulting in private-label sales equal to 114.3% of the previous fiscal year. Their share of total revenue increased 1.6 percentage points from the previous fiscal year to 20.9%.」

「Sales of private-label products reached 114.6% of the same period of the previous year as a result of strengthening the assortment of home appliances, paper products, food and other items. Their share of total revenue increased 1.7 percentage points from the same period of the previous year to 21.6%.」

「Sales of private-label products, including rice, paper products and pet supplies, increased, reaching 112.8% of the same period of the previous year. From the second quarter onward, we will continue expanding private-label products, renovating stores, and improving and promoting e-commerce, while striving to improve business performance by enabling more customers to enjoy MrMax's low prices and convenience.」

「In particular, by consolidating production plants for private-label products and reviewing procurement to provide “valuable low prices,” the company achieved private-label sales equal to 115.1% of the previous year.」

「Although sales of profitable private-label products increased,」

「Private-label sales increased 20% from the previous fiscal year as a result of strong performance across a broad range of categories.」

「By product category, sales of private-label products grew across a broad range of products, including home appliances, storage products and food, increasing 20% year on year. From the second quarter onward, the company also planned to continue expanding private-label products, renovating stores, and improving and promoting e-commerce.」

「In addition to advancing the development of private-label products, we kept the prices unchanged on 1,000 private-label products through August 2022.」

「Sales of private-label products performed well on the appeal of low prices and newly developed products, raising their share of revenue. In addition, efforts to improve margins by narrowing the range of promoted products resulted in the gross profit margin improving 0.2 percentage points from 22.5% in the same period of the previous year to 22.7%.」

「The gross profit margin increased 0.2 percentage points from the previous year to 23.2%. Despite the difficult environment of rising raw material and transportation costs, the gross profit margin improved as a result of the increased share of private-label products in revenue, as well as thorough, planned purchasing and sales and inventory management.」

「For our product assortment, we are continuing initiatives to increase sales at existing stores while keeping investment under control, including reviewing the product mix to meet local needs and changing store layouts.」

「In addition to further refining our longstanding strength in “valuable low prices,” we will develop and expand new product categories that have strong customer support, creating attractive sales floors where customers can easily choose products and shop conveniently and enjoyably. We will also differentiate ourselves from competitors and improve profitability through the development of private-label products and expansion of their sales.」

「In addition to further refining our longstanding strength in “valuable low prices,” we will develop and expand new product categories that have strong customer support, creating attractive sales floors where customers can easily choose products and shop conveniently and enjoyably.」

「Sales were strong for original 4K-compatible televisions launched ahead of the start of 4K broadcasting in December 2018, as well as for rice, for which the company expanded its range of varieties that are popular in each region.」

「① With respect to product reform, we will create sales floors where customers can shop more conveniently and enjoyably by narrowing the range of products handled and expanding the assortment to reflect new lifestyle needs.」

「We expanded to all departments the initiative, begun in some departments in the previous fiscal year, of narrowing standard products down to strong-selling items, thereby helping prevent lost sales opportunities and improve inventory efficiency. We are also continuing sales trials for product categories to be strengthened to expand future sales, using the sales-floor space created through this initiative.」

「In addition to further refining our strength in “valuable low prices,” we will work to develop and expand product categories that have strong customer support, with the aim of creating stores where customers can “buy products without hesitation or deliberation” and where “core merchandise areas serve as symbols of each store.”」