Restructuring Regional Core Stores

「At the Uehommachi store, we introduced several new brands, including OSAKA PEACH, the first permanent Peach Sweets store in Japan, in the confectionery section on the second basement floor. At the Kusatsu store, we strengthened the prepared-food selection and introduced a frozen-food section in the first-floor grocery section to meet growing demand for individual meals and time-saving products. We also introduced Hands, its first store in Nara Prefecture, on the second floor of the Wakayama store, and Green Cosmetic Garden, a semi-self-service cosmetics shop, on the first floor of the Yokkaichi store. We actively expanded franchise and company-operated sections and worked to improve profitability.」

「At our regional stores, we worked to create attractive stores with the aim of becoming indispensable to local communities.」

「For regional stores, structural reforms following the COVID-19 pandemic enabled all stores to achieve profitability during the previous and current medium-term management plan periods. During the current medium-term management plan period, we will thoroughly implement three reforms, namely revenue-structure reform, cost-structure reform and work-style reform, to sustain profits, and advance store-structure reform to the next stage.」

「To realize town centers that co-create with local communities under the medium-term management plan, we held the All-Nara Fair throughout Kashihara store in conjunction with the opening of the collaboration shop Plugs Market, operated by Kintetsu Department Store and Hands. At Uehommachi store, we also opened Plugs Market and held the Eeyan! Rediscover Osaka Fair throughout the store. Through these initiatives proposing new value to customers, we steadily advanced the medium-term management plan.」

「To realize town centers that co-create with local communities under the medium-term management plan, we held the All-Nara Fair throughout Kashihara store in conjunction with the opening of the collaboration shop Plugs Market, operated by Kintetsu Department Store and Hands. At Uehommachi store, we also opened Plugs Market and held the Eeyan! Rediscover Osaka Fair throughout the store. Through these initiatives proposing new value to customers, we steadily advanced the medium-term management plan.」

「To realize town centers that co-create with local communities under the medium-term management plan, we held the All-Nara Fair throughout Kashihara store in conjunction with the opening of the collaboration shop Plugs Market, operated by Kintetsu Department Store and Hands. At Uehommachi store, we also opened Plugs Market and held the Eeyan! Rediscover Osaka Fair throughout the store. Through these initiatives proposing new value to customers, we steadily advanced the medium-term management plan.」

「At regional flagship and suburban stores, we carried out renovations tailored to local characteristics, including promoting the transformation into town centers that combine lifestyle, commercial and community functions and actively expanding the franchise business, with the aim of becoming an indispensable presence in local communities. We also sought to stabilize profitability and shift to low-cost operations by introducing large-format specialty stores. At Nara store, the 2nd-floor fashion area was renovated using a scramble merchandising approach across the entire floor, combining new shops such as Hokkaido Dosanko Plaza, which is popular at the flagship store, and Humpty Dumpty, a new franchise-business format offering lifestyle goods. At Yokkaichi store, we introduced Plugs Market through collaboration with Hands and pursued community co-creation.」

「On 2 November, we opened Humpty Dumpty, a lifestyle goods shop offering a wide range of products from food to apparel, at Nara store as our 16th new business format, strengthening the franchise business.」

「We are advancing the conversion to town centers, multifunctional commercial service facilities designed to co-create with local communities. On 20 April, we opened Plugs Market Yokkaichi, a collaboration shop with Tokyu Hands, at Kintetsu Department Store Yokkaichi.」

「At Uehommachi, Nagoya and other stores, we also carried out renovations tailored to local characteristics, including the proactive introduction of franchise stores to meet the needs of customers in each catchment area.」

「Basic Policy 2. Converting regional flagship and suburban stores into town centers: As compact cities become more prevalent in regional and suburban areas, this initiative aims to convert stores into multifunctional commercial service facilities that combine lifestyle, commercial and community functions while leveraging the advantages of locations near railway stations.」

「There were no significant changes in the issues that the Group needed to address during the cumulative third quarter of the fiscal year under review.」

「As part of our initiatives at local suburban stores, we renovated the prepared foods and fresh foods zones in each store's food section, while converting the upper floors to specialty stores, in an effort to improve customer traffic and profitability. In particular, at Kusatsu store, which underwent a full-store renovation, we opened our 1st fitness business store under a franchise model in November last year and, in February this year, opened Plugs Market, Tokyu Hands' new collaborative format, for the 1st time in Japan.」

「As part of our initiatives at suburban stores, we renovated the prepared foods and fresh foods zones in the food sections of local suburban stores, while converting the upper floors to specialty stores, in an effort to improve customer traffic and profitability.」

「Next, to further advance our efforts to deepen ties with local communities and establish department stores that co-create with their communities, Nara store established Yamatoji: Living Space, a new section for discovering, developing and promoting local products, and opened Baby Garden, where various events can be held to build a local community and encourage visits by families with young children. Kashihara store carried out renovations centered on the food section, including the establishment of a Yamatoji shop. Higashi-Osaka store also underwent its first renovation in 11 years, and we continued to focus on the structural reform of suburban stores.」

「Next, to further advance our efforts to deepen ties with local communities and establish department stores that co-create with their communities, Nara store established a new section, Yamatoji: Living Space, to discover, develop and promote local products, and carried out renovations to strengthen its range of products proposing a high-quality lifestyle in Nara. Kashihara store carried out renovations centered on the food section, including the establishment of a Yamatoji shop. At Higashi-Osaka store, we also carried out its first renovation in 11 years, establishing new shops and improving the sales-floor environment, and continued to focus on the structural reform of suburban stores.」

「At Yokkaichi store, which underwent its first large-scale renovation in 11 years, we worked toward establishing a model for future suburban stores by building on employees' ideas. In November last year, the store reopened as a multifunctional department store combining a department store, specialty stores and community facilities.」

「At Yokkaichi store, we carried out the first large-scale renovation in 11 years, aiming to expand services beyond merchandise sales as a department store that co-creates with the local community and to create a place where local residents can gather for a variety of purposes. We worked to create and monetize a new business model, including the introduction of Tokai's largest MUJI, Mie Prefecture's first Café&Meal MUJI, and SYNTH Business Center, a serviced office to strengthen community functions. At Nara store, we fully launched Yamatoji as a concept shop for the regional trading company business and developed the franchise-model premium food supermarket Seijo Ishii, thereby promoting new attractions.」

「We developed stores to meet market needs in each region. At Uehommachi store, a large-scale full-store renovation was carried out, including the introduction of a home fashion specialty store and the reconfiguration of the women's accessories and food sections. At Nara store, renovations were carried out to promote new attractions, including the introduction of Yamatoji as a concept shop for the regional trading company business and the development of the Company's 3rd premium food supermarket, Seijo Ishii, under a franchise model.」

「At Uehommachi store, a large-scale full-store renovation was carried out, including the introduction of a home fashion specialty store, the reconfiguration of the women's accessories section and the introduction of new shops in the food section. In addition, Seijo Ishii, the Company's 3rd premium food supermarket, was introduced in the food section at Nara store, along with Yamatoji, a concept shop for the regional trading company business that promotes the new appeal of the local Nara area.」

「At regional flagship and suburban stores, we focused on developing stores that meet the needs of customers in each catchment area and earn their trust. Renovations introducing large-format specialty stores were carried out at Uehommachi store, while renovations centered on strengthening the product range in the food sections were carried out at Nara and Ikoma stores.」

「We actively opened Company-operated stores under a franchise model, including introducing our original bakery brand Brodonn, which opened at Yokkaichi store, at Nara and Ikoma stores, and introducing the premium food supermarket Seijo Ishii at Ikoma store.」

「Renovations were also carried out at regional flagship stores such as Uehommachi store, including the introduction of large-format specialty stores and work on each floor.」

「Renovations were also carried out at regional flagship stores such as Uehommachi store, including the introduction of large-format specialty stores and work on each floor.」

「At Nara store, a full-store renovation was carried out to review the merchandise mix on each floor in conjunction with the reopening of Nara Family, the shopping center housing the store. At Uehommachi store, the renovation centered on introducing large-format specialty stores such as a sporting goods specialty store. At Kashihara, Wakayama and Yokkaichi stores, large-scale renovations spanning each floor, including the food section, were carried out to emphasize the strengths of a department store.」

「At Nara store, a full-store renovation was carried out to review the merchandise mix on each floor in conjunction with the reopening of the shopping center Nara Family, which houses the store. Large-scale renovations centered on the introduction of new shops were also carried out at Uehommachi, Kashihara, Wakayama and Yokkaichi stores.」

「At the regional flagship stores, to further differentiate them from large shopping centers in the surrounding areas, Nara store opened Tokyu Hands, a large-format specialty store for household goods and the first of its kind in Nara Prefecture, on the 5th floor. Large-scale renovations centered on the introduction of new shops were also carried out at Uehommachi, Kashihara, Wakayama and Yokkaichi stores.」

「At the regional flagship stores, to further differentiate them from large shopping centers in the surrounding areas, Nara store opened Tokyu Hands, a large-format specialty store for household goods and the first of its kind in Nara Prefecture, on the 5th floor. Large-scale renovations, including the introduction of new shops on each floor, were also carried out at Uehommachi, Kashihara, Wakayama and Yokkaichi stores.」