Improving Logistics Efficiency and Low-Cost Operations Through Proprietary Infrastructure

「In February 2026, the company relocated and expanded the existing Kansai Distribution Center and began operating the Komeri (New) Kansai Distribution Center. The center is the largest of the 12 logistics facilities in Japan. The company will achieve further low-cost operations by introducing new systems designed to save labor and reduce staffing requirements.」

「• In response to Japan's 2024 logistics issue, the company introduced scheduled delivery times for delivery vehicles at each distribution center and worked to reduce vehicle waiting times. As part of this effort, it developed a dedicated delivery-receipt app, reducing the average waiting time for delivery vehicles from 25 minutes to 5 minutes. • The existing Kansai Distribution Center will be relocated and expanded, and the Komeri (New) Kansai Distribution Center is scheduled to begin operations in spring 2026.」

「• In June 2024, the company began operating the Komeri Shizuoka Distribution Center, its 12th logistics facility in Japan, to strengthen store expansion in the Tokai region and improve logistics efficiency. • In June 2024, construction began on the Komeri (New) Kansai Distribution Center.」

「In June 2024, the company began operating the Komeri Shizuoka Distribution Center, its 12th logistics facility in Japan, to strengthen store expansion in the Tokai region and improve logistics efficiency. • In June 2024, construction began on the Komeri (New) Kansai Distribution Center.」

「To expand its logistics functions, the company will expand its 11 distribution centers currently operating in Japan, promote the insourcing and efficiency of logistics and reduce the cost of store operations, while also addressing Japan's 2024 logistics issue.」

「As part of the expansion of its logistics functions, the company established a Fresh Management Center (FMC) in July on the premises of the Komeri Hanamaki Distribution Center to process and distribute cut flowers within the Group. As an industry-first initiative, the Group's FMCs are now operating at three distribution management centers in Ibaraki, Niigata and Hanamaki. Fresh cut flowers are available at approximately 700 stores, mainly in eastern Japan, and have received strong customer support.」

「The logistics issue facing Japan in 2024 has become unavoidable for the Group, which aims to modernize distribution in the building materials, hardware and tools, and gardening and agriculture sectors. The Group will continue to provide comprehensive support from production to sales and expand and improve the efficiency of its logistics functions through more than 1,200 stores and 11 distribution centers in Japan. On 1 June 2023, it also established a Logistics Planning Division to formulate strategies for the logistics structure.」

「In terms of profit, the company saw improvement from renewing its store operating model and promoting EDLP initiatives, but gross profit margin deteriorated due to cost-push inflation, while higher utility costs also had a significant impact.」

「In these circumstances, our group has focused on providing products that address customers' latent needs by sourcing from the world's best sources, and proposing services that improve the home environment, using a logistics network centered on 11 distribution centers nationwide and a network of more than 1,200 stores, with the aim of protecting and enhancing customers' lives through the modernization of distribution in underdeveloped housing-related sectors.」

「In these circumstances, our group has focused on providing products that address customers' latent needs by sourcing from the world's best sources, and proposing services that improve the home environment, using a logistics network centered on 11 distribution centers nationwide and a network of more than 1,200 stores, with the aim of protecting and enhancing customers' lives through the modernization of distribution in underdeveloped housing-related sectors.」

「Under these circumstances, to fulfill its role as social infrastructure, the Group has used a logistics network centered on 11 distribution centers nationwide and a store network of more than 1,200 locations nationwide to maintain a stable supply of products used by local professional customers, including tools, hardware and building materials for construction businesses such as local contractors, and fertilizers, agricultural chemicals and agricultural materials for farmers.」

「Under these circumstances, to fulfill its role as social infrastructure, the Group has used a logistics network centered on 11 distribution centers nationwide to maintain a stable supply of products used by local professional customers, including tools, hardware and building materials for construction businesses such as local contractors, and fertilizers, agricultural chemicals and agricultural materials for farmers.」

「To fulfill its role as social infrastructure, the Group has used a logistics network centered on 11 distribution centers nationwide to maintain a stable supply of essential housing and lifestyle products, including building materials for construction businesses such as local contractors, agricultural materials for farmers, and DIY and gardening materials used by many customers.」

「Selling, general and administrative expenses decreased, mainly advertising expenses, as the company shifted from print-based advertising to digital media and refrained from distributing flyer advertisements in response to the declaration of a state of emergency.」

「The effect of containing selling, general and administrative expenses through BPR (business process reengineering) and other measures also supported progress in low-cost operations. Net income attributable to owners of the parent reached a record high for the first quarter for the third consecutive fiscal year.」

「利益面では、新たな開発商品の導入、ＥＤＬＰ政策の推進、ＢＰＲ(ビジネスプロセス・リエンジニアリング)による更なるローコストオペレーションの追求により荒利益額、営業利益額が増加しました。」

「BPR (business process reengineering) and other measures reduced the types and volume of store work, contributing to further progress in low-cost operations. Selling, general and administrative expenses were contained, and consolidated results for the cumulative third quarter increased in both revenue and profit.」

「In terms of business performance, unseasonable weather in May had a negative impact on sales and profit, particularly for gardening products. However, selling, general and administrative expenses were contained through more efficient operations, including BPR (business process reengineering), and consolidated results for the cumulative first quarter increased in both revenue and profit.」

「In terms of profit, the profit margin improved through an improvement in merchandise gross margin and more efficient operations through BPR. Operating profit was ¥16,964 million (101.6% of the year-earlier period), and ordinary profit was ¥17,087 million (101.6%).」

「In terms of profit, the profit margin improved through an improvement in merchandise gross margin and more efficient operations through BPR (business process reengineering).」

「Profit also exceeded the previous year's results, owing to an improvement in merchandise gross margin and more efficient operations through BPR (business process reengineering).」

「The Group has promoted the globalization of product development, developed its logistics network and information systems, built a nationwide distribution network, and established a low-cost operating structure.」

「また、ローコストオペレーションの更なる強化により、店舗運営及び経営全体の効率化による経費削減を図ってまいりました。」

「また、ローコストオペレーションの更なる強化により、店舗運営及び経営全体の効率化による経費削減を図ってまいりました。」

「The company has also improved the efficiency of store operations and overall management by further strengthening its low-cost operating model.」

「The stores and products described above are supported by the company's proprietary logistics and information systems. By making full use of these systems, the company has achieved detailed product management and low-cost operations at its stores.」