Partial realization of the Fujisawa store remodel effects and shortfall for the store as a whole

「The average number of visitors entering the store has increased by approximately 1,500 or more per day since Round One opened, and synergies between the department-store and tenant zones are also emerging. We therefore believe this will contribute to future growth in performance.」

「At the department-store-sponsored Chocolate Festival in January and February, which featured a selection of chocolates at the Yokosuka and Fujisawa stores, many customers visited the stores, among other results, and synergies between the tenant and department-store areas have begun to emerge.」

「Since Yamada Denki opened at the Fujisawa store in June of the previous year, synergies with the department-store zone have been generated, including increased customer traffic, and rental income has also increased. Following this, at the Yokosuka store, York Foods, a supermarket, opened on the first basement floor on 20 March, and Sundrug, a drugstore, opened on the first floor on 19 June, producing similar effects to those at the Fujisawa store.」

「At the Yokosuka store, York Foods, a supermarket, opened on 20 March on the first basement floor, which had been temporarily closed for refurbishment since September of the previous year, producing effects similar to those at the Fujisawa store.」

「Since Yamada Denki opened at the Fujisawa store in June of the previous year, synergies with the department-store zone have been generated, including increased customer traffic, and rental income has also increased.」

「Although sales at the Fujisawa store declined in the third quarter because of refurbishment work, including the reorganization of the existing store, in preparation for the opening of Yamada Denki, a major consumer electronics retailer, from the fourth quarter onward the increase in customer traffic following Yamada Denki's opening on 2 June generated synergies with the department-store zone, while rental income also increased.」

「In the third quarter, sales declined due in part to the reduction in sales-floor space resulting from renovations, including the reorganization of existing stores, ahead of the opening of Yamada Denki, a major home electronics retailer.」

「In addition, the 150th anniversary grand appreciation event for commercial customers was well received by many customers as a concept extending beyond the framework of previous events. Together with the clearance sale held for the extensive refurbishment of the Fujisawa store in preparation for the opening of Yamada Denki, Japan's largest consumer electronics retailer, scheduled for early summer 2023, this made a significant contribution to the increase in sales for the current fiscal year.」

「To improve customer convenience and respond to the shift toward cashless payments in Japan, the Fujisawa store introduced code-based payment services from 26 May 2021 for 6 domestic brands. Following the lifting of the state of emergency on 30 September 2021, sales of fashion accessories and apparel, which have strong occasion-based demand, entered a recovery trend, and sales exceeded the previous year's results for the full year.」

「At the Fujisawa store, sales of fashion accessories and apparel, which have strong occasion-based demand, have been recovering since the state of emergency was lifted on 30 September 2021.」

「Although sales in April and May 2021 significantly exceeded the previous year's results due to the reaction to the temporary closures from 8 April to 26 May of the previous year, excluding the food floor, the strong impact of the spread of COVID-19, including the application of priority preventive measures and requests to refrain from going out, caused sales for the first-quarter cumulative consolidated period to fall below plan at all stores.」

「Some effects of the measures have begun to emerge, including customer traffic at the Yokosuka store exceeding the previous year's level. However, company-wide sales fell below the forecast for all stores because of weather-related factors, including sluggish apparel sales due to low temperatures, heavy rainfall, a prolonged rainy season and a record warm winter, as well as temporary closures caused by Typhoon No. 19, and the impact of the October consumption tax increase.」

「As a result of the sales initiatives described above, customer traffic at the Fujisawa and Yokosuka stores was at approximately the previous year's level in the second quarter, as it had been in the first quarter. The downward trend in customer traffic has been eliminated, and we will increase customer traffic by implementing further customer-attraction measures. At the Kawasaki store, sales for the cumulative second-quarter period were 100.9% of the previous year's level and exceeded the previous year's results.」

「At the core Fujisawa store, where sales were 102.2% of the previous year's level, and the Kawasaki store, at 101.9%, sales exceeded the previous year's results in the first quarter. At the Yokosuka store, the decline in sales improved for 3 consecutive months from March 2019, while customer traffic exceeded the previous year's results for 2 consecutive months in April and May 2019, indicating steady results from the various measures implemented to date.」

「At the Fujisawa store, our flagship location, the March and June renovations introduced shops supported by local customers. Customer traffic also benefited from the partial closure of nearby commercial facilities for renovation, while the previous year's renovation continued to support visitor numbers and earnings. In the fiscal year ending February 2019, sales exceeded the prior-year level, indicating that the measures implemented to date are steadily producing results.」

「At the core Fujisawa store, the opening of 13 new shops in June, among other factors, increased the benefit from attracting customers during partial closures associated with renovation work at neighbouring commercial facilities. The effects of the previous year's renovation also supported customer traffic and earnings. Sales exceeded those of the same period of the previous year in both the third quarter, following the second quarter, and the cumulative third quarter, indicating that the effects of measures implemented to date are steadily emerging. Rental income also increased following the conversion of some areas to tenant space.」

「At the Fujisawa store, our flagship location, the opening of 13 new shops in June, together with the effects of the prior year's renovation, supported an increase in visitor numbers and earnings. Sales for the six-month period exceeded the prior-year level, indicating that the various measures implemented to date are beginning to produce results.」

「At the Fujisawa store, new shops, including Nitori, which opened last year, supported customer traffic and earnings. The effects of measures implemented last fiscal year are emerging, with sales in March and April exceeding those of the same months of the previous year.」

「In the fiscal year ended February 2018, two floors at the Fujisawa store were converted to tenant space as part of the full-store renovation carried out in April 2017, reducing the department store floor area by approximately 23% and bringing sales to 92.4% of the previous fiscal year. Meanwhile, rental income from the new tenants has supported earnings, and earnings at the Fujisawa store, including rental income, have begun to bottom out. Following the renovation, customer traffic exceeded the previous year's level every month, with full-year customer traffic at 109% of the previous fiscal year, and sales at many individual shops exceeded the previous year's results.」

「At the Fujisawa store, the entire store was remodelled in April, including the opening of Nitori, and customer traffic has exceeded the previous year's level every month. The department store floor area has decreased because some areas were converted to tenants as part of the remodel, resulting in lower total sales. However, many sales areas have begun to exceed the previous year's results, and rental income is supporting earnings, indicating that the effects of the remodel are beginning to emerge.」

「At the Fujisawa store, the effects of the remodel are clearly emerging, including an increase in customer traffic and sales exceeding the previous year's level in some sales areas. However, the effects have not yet been realised across the store as a whole.」