Major Overhaul of the Product Assortment and Rollout Schedule and Expansion of National-Brand Products

「In product procurement, we further increased the production ratio in the ASEAN region, led by the Trading Department, thereby limiting increases in procurement costs resulting from soaring raw-material prices and foreign-exchange fluctuations.」

「In product procurement, the Company addressed increases in procurement costs by using its trading division to expand production in ASEAN through direct transactions with overseas suppliers.」

「The Company increased sales by reviewing product rollout schedules and strengthening the promotion of functions and materials suited to weather conditions.」

「In product procurement, the Company expanded ASEAN production by using its trading division to transact directly with overseas suppliers as a response to higher procurement costs. To address a warm winter, it also optimized winter inventory, mainly for outerwear and underwear, by using fabric contracts.」

「In product procurement, the Company expanded short production cycles for the additional production of best-selling products to practical apparel, where they were effective in increasing sales. The use of its trading division to transact directly with overseas suppliers and the review of the production-country mix helped contain increases in procurement costs.」

「In product procurement, the Company used short production cycles to produce additional quantities of best-selling products within a short period, contributing to higher sales. It also sought to contain increases in procurement costs by using its trading division to transact directly with overseas suppliers and reviewing the production-country mix.」

「The Company used short production cycles coordinated with suppliers, including producing additional quantities of best-selling products in approximately 40 days and returning them to stores. It also strengthened product management according to store location, including urban and suburban areas and cold and warm regions, and implemented thorough brand-specific sales floor and inventory management for PBs and JBs, helping to control markdowns.」

「In inventory management, the Company managed products appropriately according to various store locations, including urban and suburban areas and cold and warm regions. For PBs and JBs, whose sales scale had expanded, thorough brand-specific sales floor and inventory management helped control markdowns.」

「In inventory management, some products experienced delivery delays due to the Shanghai lockdown, but the Company worked with suppliers to address the issue. As a result, it was able to prepare sufficient summer merchandise for the heat from late June onward, and sales increased significantly in July.」

「In inventory management, the Company continued to use short production cycles coordinated with suppliers, including producing additional quantities of best-selling products and returning them to stores within a short period, enabling it to control markdowns despite sharp temperature fluctuations.」

「In inventory management, the use of short production cycles to produce additional quantities of best-selling products and return them to stores within a short period contributed to higher sales and efficient inventory control, while markdowns were also reduced.」

「The expansion of short production cycles coordinated with suppliers, including producing additional quantities of best-selling products and returning them to stores within a short period, contributed to higher sales and efficient inventory control, while markdowns were also reduced.」

「In inventory management, the Company used short production cycles coordinated with suppliers and flexibly revised budget allocations by division to control inventory efficiently. As a result, seasonal merchandise was maintained at appropriate inventory levels, contributing to reduced markdowns.」

「In inventory management, the Company used short production cycles coordinated with suppliers and flexibly revised budget allocations by division to control inventory efficiently. As a result, autumn and winter merchandise was maintained at appropriate inventory levels, contributing to reduced markdowns.」

「In response to sales fluctuations during the COVID-19 pandemic, the Company used short production cycles in coordination with suppliers and exercised detailed inventory control, reducing inventory levels from the previous year. This enabled additional production of best-selling products and reduced markdowns on seasonal merchandise」

「The proportion of products made on short production cycles also expanded to 27% of women’s apparel and 52% of the Teens and Young division, enabling additional production of best-selling products and inventory restraint.」

「The Company is reviewing its production cycle in collaboration with apparel manufacturers and local factories. In the current fiscal year, approximately 20% of women’s apparel was produced on short cycles of approximately 40 days, enabling additional production of best-selling products and inventory restraint.」

「In the core Shimamura business, the Company sought to increase the number of women’s and men’s apparel items to make shopping more enjoyable and enhance the variety of products. It also began reviewing its production cycle and, in collaboration with apparel manufacturers and local factories, incorporated short production cycles of approximately 40 days for a certain proportion of women’s apparel. This established a method of adjusting inventory by producing additional quantities of best-selling products and responding to fluctuations in sales.」

「We will expand the number of items, focusing on outerwear, and proceed with developing the high-fashion, high-quality CLOSSHI PREMIUM private-label brand.」

「The Company increased national-brand products and inventory volume at the start of the season, progressing with a product range that met the expectations of fashion-conscious customers.」

「The Company substantially reviewed its product mix and rollout schedule, increased national-brand products and maintained greater inventory volume at the start of the season, changing its product range to meet the expectations of fashion-conscious customers.」

「The Company substantially reviewed its product mix and rollout schedule, increased national-brand products, and maintained greater inventory volume at the start of the season, meeting the expectations of fashion-conscious customers.」