Closure of the Yokosuka Store and Concentration of Management Resources on the Fujisawa Store

「In February 2021, the company temporarily closed the unprofitable Yokosuka store, then relaunched operations in March 2021 as “SAIKAYA YOKOSUKA SHOPPING PLAZA,” with a smaller sales floor and a low-cost operating model run by a small number of employees.」

「In terms of operations, the “Yokosuka Store Closing Appreciation Sale,” a long-running sale scheduled to last approximately 5 months, began at the Yokosuka store on 16 September 2020 and is supporting sales.」

「In estimating future cash flows for the impairment loss on property, plant and equipment and the assessment of future funding under the going concern assumption, the company has considered, in addition to the assumptions above, the impact of the Yokosuka store closure on sales.」

「At a board meeting held on 8 May 2020, the company resolved to close the “さいか屋横須賀店新館・南館” (the “Yokosuka store”). Sales at the Yokosuka store had continued to decline, and it had been persistently unprofitable since the fiscal year ended February 2017. Although the company had pursued measures including more efficient store operations, the decline in sales could not be halted and there was no prospect of a recovery in performance. The store will therefore be closed, with management resources concentrated on the Fujisawa store to improve profitability. The closure is scheduled for February 2021.」