Implementing Group-wide Cost Structure Reform

「We continued to allocate selling, general and administrative expenses to initiatives for advancing human capital management, including base-pay increases, and appropriately invested in expenses contributing to stronger sales capabilities after assessing their expected benefits. At the same time, we pursued cost-reduction initiatives, which improved selling, general and administrative expenses from the previous year's actual level despite unavoidable increases in factors such as utility costs.」

「We also kept the increase in SG&A expenses from the previous year to a minimum. As we continued to pursue cost-reduction initiatives, including further efficiency improvements in store operations, SG&A expenses as a percentage of total operating revenue were lower than in the previous year.」

「We kept the increase in selling, general and administrative expenses from the previous year to a minimum. While appropriately investing in human capital, including base-pay increases, and in initiatives to strengthen sales capabilities, such as introducing new brands, we also pursued cost reductions, including further efficiency improvements in store operations. As a result, SG&A expenses as a percentage of total operating revenue were lower than in the previous year.」

「In the department store business, the cost structure reforms undertaken since last year were expanded to all stores this year, producing a certain level of progress in building an operating framework capable of generating profits.」

「In the department store business, the company is steadily building a structure capable of generating profits by continuing the cost structure reform undertaken since last year.」

「In the department store business, the company’s core business, its top priority is to establish a management structure capable of generating stable profits. At the 5 large stores—Osaka, Kyoto, Nihombashi, Yokohama and Shinjuku—it is working both to strengthen sales capabilities and to reform the cost structure.」

「In the department store business, the company’s core business, its top priority is to establish a management structure capable of generating stable profits. It introduced at the Kyoto, Nihombashi, Yokohama and Shinjuku stores, the 4 large stores, from September the structural reform model first introduced at the Osaka store in March, and is strengthening sales capabilities and improving operating efficiency.」

「In March, the company began full-scale structural reform at the Osaka store, covering both its operating structure and expenses, and will expand these initiatives to other stores from the second half onward.」

「The group formulated the Takashimaya Group Three-Year Plan as a specific action plan for achieving its management objectives, targeting consolidated operating profit of ¥30 billion in fiscal 2023. Following the first year, fiscal 2021, the group will continue to implement the plan steadily based on the PDCA cycle from fiscal 2022 onward.」

「As part of its efforts to revitalise the department store business, the company is pursuing cost structure reform and stronger sales capabilities in parallel. Under the cost structure reform, it is reducing operating expenses through productivity improvements, establishing an appropriate staffing structure and bringing outsourced work in-house, with the aim of shifting to a structure capable of generating stable profits.」

「Under the cost structure reform, the company worked to reduce operating expenses through productivity improvements, establishing an appropriate staffing structure and bringing outsourced work in-house, with the aim of shifting to a structure capable of generating stable profits.」

「In the current fiscal year, the first year of the Three-Year Plan, the company is working to reduce operating expenses in order to achieve an early return to profitability.」

「As a specific action plan for achieving its management priorities, the group newly formulated the Takashimaya Group Three-Year Plan, which targets consolidated operating profit of ¥30 billion in fiscal 2023, and will implement it steadily based on the PDCA cycle.」

「Meanwhile, in light of the difficult performance resulting from the impact of COVID-19, the company will pursue a more fundamental review of its cost structure to further strengthen earnings power.」

「Against this backdrop, the group has identified deepening and expanding the Group Comprehensive Strategy, “Machizukuri” (the Machizukuri Strategy), and implementing group-wide cost structure reform as management priorities for the current fiscal year, and is pursuing growth in each business.」