Opening New Shops and Expanding Sales-Floor Space

「In terms of sales operations, Fashion Plaza Pasios opened on 25 September 2024 on the third floor of the Yokosuka store, and Life opened on 16 October 2024 on the first basement floor of the Fujisawa store. In addition, we acquired part of the eighth-floor restaurant area at the Fujisawa store on 1 November 2024, Pompadour opened on the first floor of the Fujisawa store on 23 May 2025, and Locust Off-Price Shop opened on the third floor of the Yokosuka store on 18 July 2025. These initiatives helped attract new customers and further increased recurring tenant rental income.」

「At the Yokosuka store, Fashion Plaza Pasios opened on 25 September 2024, and at the Fujisawa store, the Life supermarket opened on 16 October 2024. These openings attracted new customers and increased recurring rental income from tenants.」

「At the Yokosuka store, York Foods opened on 20 March on the first basement floor, which had been temporarily closed for renovation since September of the previous year, producing effects similar to those at the Fujisawa store. We also held renovation sales in connection with the opening of Sundrug on the first floor of the Yokosuka store on 19 June and the planned opening of Life on the first basement floor of the Fujisawa store in the autumn. These sales contributed to higher revenue, and we expect rental income to increase further after the openings.」

「Following this, York Foods opened on 20 March on the first basement floor of the Yokosuka store, which had been temporarily closed for renovation since September of the previous year. We expect effects similar to those at the Fujisawa store. In addition, we began a pre-renovation sale in late January ahead of the planned opening of the Life supermarket on the first basement floor of the Fujisawa store this autumn. The sale contributed to higher revenue, and we expect rental income to expand further from the next fiscal year onward.」

「From the fourth quarter onward, the opening of Yamada Denki on 2 June increased visitor numbers and generated synergies with the department store zone. 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.」

「Together with the clearance sale held for the major renovation of the Fujisawa store in preparation for the opening of Yamada Denki, Japan's largest home electronics retailer, in early summer 2023 as planned, these measures made a significant contribution to the increase in sales for the current period.」

「At the Fujisawa store, the specialist bullion-buying shop KAITORI SALON opened on the first floor on 9 March 2022 and has been well received by customers. We also strengthened bullion buying at the Yokosuka and Kawasaki stores, which led to higher fee income. In addition, the Yokosuka store increased its number of operating days by 7 from the prior-year period to improve customer convenience and increase sales.」

「The specialist bullion-buying shop KAITORI SALON opened at the Fujisawa store on 9 March 2022. We also strengthened bullion buying at the Yokosuka and Kawasaki stores, resulting in higher fee income.」

「At the Yokosuka store, Gotochi no Dendo Saikaya e STAGE, Salon de AFC and the 100-yen shop Seria opened on 20 October 2021 and have been well received by customers.」

「In September, the Fujisawa store opened Shonan Yaoya Kouta's Fruit Parlor, a popular shop in Hiratsuka, Kanagawa Prefecture, offering the highest-quality seasonal fruit sourced from across Japan. The shop has been well received.」

「In September, the Fujisawa store opened Shonan Yaoya Kouta's Fruit Parlor, a popular shop in Hiratsuka known for offering the highest-quality seasonal fruit sourced from across Japan. The shop has been well received.」

「In August 2019, the Fujisawa store introduced the beauty-related shops Nails Unique and Shiseido Beauty Salon.」

「To enhance the appeal of the stores, the Fujisawa store opened 5 women's and men's apparel brands, including Scapa, in March 2019, followed by the flower shop Monceau Fleurs in April. The Yokosuka store opened 2 apparel brands, including the women's pants shop Story, in March and April 2019, and hosted Black Rifle Coffee as a temporary event shop in April. We also sought to attract new customers by bringing in, as a tenant in the north annex of the Yokosuka store in April 2019, a business partner operating the culture school previously run by the Company, with a diverse range of classes and many members in the Yokosuka area.」

「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.」

「Under the initiative to strengthen sales capabilities, the Fujisawa store, our flagship location, benefited from the opening of 13 new shops in June and from increased customer traffic generated by the partial closure of nearby commercial facilities during renovation. The prior year's renovation also supported visitor numbers and earnings. Sales exceeded the prior-year level in both the third quarter and the nine-month period, following the same trend as in the second quarter. Rental income from the conversion of part of the store to tenant space also increased.」

「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.」

「We also introduced shops supported by local customers, including Garden Sen Soniquno, Aramis and the Miki House Kids Pal preschool. In addition, we plan to open 13 new shops at the Fujisawa store in June to strengthen its sales capabilities further.」

「At the Fujisawa store, we opened Nitori across the sixth and seventh floors in April 2017 to strengthen our lifestyle and merchandise proposal capabilities and attract more customers. We also reviewed the merchandise and presentation of the department store zone and opened new shops, including Sawamitsu Seika and Ginza Hageten, on the first basement floor to strengthen food sales. In August 2017, we opened Tully's Coffee on the second floor to further increase customer traffic and attract new customers.」

「During the nine-month period, we implemented the following measures to strengthen sales capabilities. At the Fujisawa store, we carried out a full-store remodel, including the opening of Nitori in April, and visitor numbers exceeded the prior-year level every month. In October, we held Fujisawa Station South-North Department Store Weeks, our first joint initiative with Odakyu Department Store's Fujisawa store. Through various events and joint promotions, we also worked to revitalize the area around Fujisawa Station. At the Yokosuka store, we remodeled the produce section in March, and sales at the produce shop have been progressing steadily.」

「To strengthen sales capabilities, the Fujisawa store opened Nitori in April and Tully's Coffee on the second floor in August, completing its remodeling. To strengthen food sales, which account for a large share of sales and comprise daily-use products, the store opened Sawamitsu produce, while the Yokosuka store opened Kyusyuya.」

「During the cumulative first-quarter period under review, the Company strengthened sales capabilities by opening Nitori in April across the sixth and seventh floors of the Fujisawa store, using two floors, with the aim of introducing a tenant supported by customers. At the same time, it reviewed the products and presentation in the department store zone. To strengthen food sales, a Sawamitsu produce shop and Ginza Hageten were opened at the Fujisawa store, while Kyusyuya was opened at the Yokosuka store, further strengthening sales capabilities at both stores. Both shops have been well received.」

「Amid this operating environment, the Company implemented the following sales initiatives during the fiscal year. At the Fujisawa store, it opened the women's apparel shop Lauren Ralph Lauren on the second floor in April and renovated and reopened Kodawariya and other specialty food shops from October through November to revitalize the basement first-floor food level.」

「During the cumulative nine-month period under review, the Company implemented the following sales initiatives. At the Fujisawa store, in October, it expanded and renovated the sales area of Kodawariya, a specialty shop on the basement first-floor food level offering mainly domestic foods made with minimal use of chemical pesticides, fertilizers and synthetic additives. At the same time, Tokachi Daimyo, an adjacent shop specializing in ohagi and other sweets, was relocated and reopened under the name Sazae. In November, the popular bakery Pompadour, where bakers prepare and bake bread from scratch every day in the shop's own workshop, reopened following renovation with a new eat-in area. At the Yokosuka store, the sweets café Sabo Saya opened in September on the basement first-floor food level.」

「At the Fujisawa store, we opened the women's apparel shop Lauren Ralph Lauren in April. At the Yokosuka store, we also opened a shop for Hayuka Sohonten, a renowned local Misaki tuna specialty store, in May, and both shops have been well received. At the Kawasaki store, orders for gifts and school uniforms have exceeded plan since its opening last June, and we have therefore expanded the sales-floor space.」