Development of New Revenue Sources through the Franchise Convenience Store Business

「At our regional stores, we also worked to create attractive stores with the aim of becoming an “indispensable presence” in the local community. At the Uehommachi store, we introduced several new brands, including “OSAKA PEACH,” the first permanent specialty store in Japan for peach sweets, in the confectionery section on the second basement floor. At the Kusatsu store, we strengthened the prepared-food offering and introduced a frozen-food section in the first-floor grocery department to meet growing demand for individual meals and time-saving products. We also introduced “Hands,” its first store in Wakayama 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. In these and other ways, we actively expanded our franchise and self-operated sales areas and worked to improve profitability.」

「We actively expanded franchise and self-operated sales areas and worked to improve profitability.」

「For our franchise format, in which we have expanded the number of categories and stores, we will shift from “quantity” to “quality,” while also seeking to improve business productivity.」

「In the franchise business, which we are strengthening to improve profitability, we opened “24th-Century Ramen Abeno Harukas” on 2 March on the 12th floor of “Abeno Harukas Dining” at our main store, making it the fourth restaurant category. In addition, we opened “KAFFE OTTE,” a bakery café and shop offering an experience of the Nordic and Danish lifestyle, on 17 April. With these openings, our franchise business now covers 25 categories.」

「In the franchise business being strengthened to improve profitability, we opened 24th Century Ramen Abeno Harukas at 12th-floor Abeno Harukas Dining at the Main Store on 2 March, making it the fourth restaurant business format. As a “near-future brand” of Menya Jinrui Mina Menrui, the restaurant provides value that can be experienced only there. In addition, we opened KAFFE OTTE, a bakery café and shop offering an experience of the Nordic and Danish lifestyle, on 17 April. With these openings, our franchise business now covers 25 sectors.」

「As part of “Monetizing the Strengths of Department Stores” under the medium-term management plan, we strengthened the franchise business and, on 12 April, opened Babyface Sky Terrace Abeno Harukas, our first full-service restaurant business under a franchise agreement, on the 14th floor of Abeno Harukas Dining, one of Japan's largest restaurant areas, at the Abeno Harukas Kintetsu Main Store. In addition, based on the desire to “bring more delicious smiles to everyone, from small children to adults,” we opened Pekolicious, a dessert brand making its Japan debut and jointly developed with Fujiya Co.,Ltd., on 27 September under the theme “Happiness for cheeks around the world.” With this opening, our franchise business now covers 21 sectors.」

「With this opening, our franchise business now covers 20 sectors.」

「In the department-store business, we have made “Monetizing the Strengths of Department Stores” a basic policy of the medium-term management plan and are strengthening the franchise business. On 12 April, we opened Babyface Sky Terrace Abeno Harukas, our first full-service restaurant business under a franchise agreement, on the 14th floor of Abeno Harukas Dining, one of Japan's largest restaurant areas, at the Abeno Harukas Kintetsu Main Store. With this opening, our franchise business now covers 20 sectors.」

「First, at the Abeno Harukas Kintetsu Main Store, to strengthen premium brands, we introduced Celine in the premium apparel section on the first floor of the Tower Building and renovated Loewe. On the fifth floor of the Wing Building, we also introduced Irodori Marche, including a food specialty shop, as the second rollout of Scramble MD, a sales floor combining apparel, food, household goods and services. In addition, as part of our franchise business, we introduced the first Fruit Fleur new-format fruit café on the 12th-floor restaurant level of the Tower Building, working to secure a new revenue source.」

「On 20 April, we opened Plugs Market Yokkaichi, a collaboration shop with Tokyu Hands, at the Yokkaichi store, and on 3 August, opened Fruit Fleur, a new-format fruit café, at the Abeno Harukas Kintetsu Main Store. On 2 November, we also opened Humpty Dumpty, a lifestyle-goods shop with a broad selection ranging from food to apparel, at the Nara store as the 16th new business format, strengthening the franchise business.」

「On 3 August, we opened Fruit Fleur, a new-format fruit café under a franchise model, on the 12th floor of Abeno Harukas Dining, one of Japan's largest restaurant areas, at the Abeno Harukas Kintetsu Main Store. On 20 April, we had also opened Plugs Market Yokkaichi, a collaboration shop with Tokyu Hands, at the Kintetsu Department Store Yokkaichi. The franchise business now covers 15 sectors.」

「As part of our franchise business, we introduced Seijo Ishii on the second basement floor and Japan's first Shennong Village lifestyle shop from Taiwan on the 10th floor, working to secure revenue sources.」

「Amid this challenging environment, we actively strengthened the franchise business, including entering the drugstore business and opening Japan's first Shennong Village lifestyle shop from Taiwan inside the Abeno Harukas Kintetsu Main Store. At the same time, we opened Shishi, a restaurant serving Taiwanese home cooking, and Oolong Market Tea Market, a specialty Taiwanese tea shop, creating a zone where customers can enjoy a Taiwanese atmosphere.」

「We actively strengthened the franchise business, including by entering the drugstore business through a franchise agreement with Kokumin Co., Ltd.」

「On 9 April, we opened Japan's first Shennong Village lifestyle shop from Taiwan under a franchise model. At the same time, we opened Shishi, a restaurant serving Taiwanese home cooking, and Oolong Market Tea Market, a specialty Taiwanese tea shop, creating a zone where customers can enjoy a Taiwanese atmosphere.」

「In particular, at the fully renovated Kusatsu store, we opened the first franchise fitness business last November and, in February this year, opened Japan's first Plugs Market, a new collaboration format with Tokyu Hands.」

「We advanced franchise openings and worked to develop new, experience-based franchise businesses, including opening the first franchise fitness business at the Kusatsu store in November. As a new business initiative, the regional trading company business combined the strengths of local companies to develop new local products and open sales channels outside the Group, while the cross-border e-commerce business worked to expand sales channels in China, and we pursued revenue growth in fields outside the department-store business.」

「We also worked energetically to expand sales channels in the regional trading company and cross-border e-commerce businesses, with the aim of expanding revenue outside the department-store business.」

「At the Nara store, we established Yamatoji: Kurashi no Ma, a new section for discovering, developing and promoting local products, and carried out renovations to strengthen the product lineup proposing a high-quality lifestyle in Nara. At the Kashihara store, we also renovated mainly the grocery section, including by establishing a new Yamatoji Shop.」

「In the regional trading company business launched in March last year, we developed original products in collaboration with local governments and producers in Nara Prefecture and began selling them at the Yamatoji Shop at the Nara store in November last year.」

「At the Nara store, we fully launched Yamatoji as a concept shop for the regional trading company business and showcased new attractions, including by rolling out the Seijo Ishii premium grocery supermarket under a franchise model.」

「At the Nara store, we carried out renovations to showcase new attractions, including introducing Yamatoji as a concept shop for the regional trading company business and rolling out our third Seijo Ishii premium grocery supermarket under a franchise model.」

「In addition to rolling out our third Seijo Ishii premium grocery supermarket in the grocery section of the Nara store, we newly introduced Yamatoji, a concept shop for the regional trading company business that promotes the new appeal of Nara.」

「For the FamilyMart convenience-store business, we opened Tenpōzan store, our sixth store. We also opened the second On-Days eyewear shop at the Yokkaichi store and the second Seijo Ishii premium grocery supermarket at the Ikoma store. In addition, we accelerated initiatives to expand new revenue sources by rolling out our original bakery brand Brodon, launched at the Yokkaichi store, at the 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.」

「We actively opened company-operated stores under a franchise model, including our original bakery brand Brodon, opened at the Yokkaichi store last year, at the Nara and Ikoma stores, and the premium grocery supermarket Seijo Ishii at the Ikoma store.」

「We actively opened company-operated stores under a franchise model, including our original bakery brand Brodon, opened at the Yokkaichi store last year, at the Nara store.」

「To develop future revenue sources, we have diversified our company-operated stores under a franchise model, including Tokyu Hands at the Nara store, the first Brodon bakery shop and Seijo Ishii premium grocery supermarket at the Yokkaichi store, and On-Days eyewear shop at the Abeno Harukas Kintetsu Main Store.」

「We actively advanced initiatives to develop future revenue sources by directly operating under a franchise model certain stores opened as part of store renovations, including the first store of our original bakery brand Brodon and Seijo Ishii Kintetsu Yokkaichi, a premium grocery supermarket.」

「We also actively advanced initiatives to develop future revenue sources, including directly operating the first store of our original bakery brand Brodon, opened as part of the renovation of the Yokkaichi store, under a franchise model.」

「We also actively advanced initiatives to secure future revenue sources, including directly operating the Tokyu Hands store opened at the Nara store under a franchise model.」