Improving the Profitability of Overseas Operations

「ASEAN: Led by Malaysia and Vietnam, operating profit was approximately 1.5 times the previous year, and the international business recorded substantial profit growth, offsetting the weak performance in China.」

「In China, as the economic recovery slowed and consumers continued to favour saving, each company reviewed its product strategy, promoted sales expansion in priority categories, strengthened promotions for key sales campaigns such as uniform-price events, National Day and Double 11, and pursued reforms to its cost structure. Measures to restore earning power made steady progress.」

「ASEAN recorded higher revenue and profit. AEON Vietnam performed steadily against a backdrop of the country’s high economic growth rate, resulting in substantial increases in revenue and profit.」

「At MyAEON2go, an online supermarket whose delivery area was expanded nationwide in May, transaction volume increased 11% from the year-earlier level and average spend per customer rose 3%. Sales increased in all categories: food, clothing, and home and leisure.」

「In addition, sales at the online supermarket "myAEON2go" in AEON Malaysia increased by 40% from the year-earlier level.」

「In e-commerce, the company continually improved its product range and on-time delivery rate to respond to post-pandemic consumer behaviour. As a result, sales at the online supermarket "myAEON2go" have remained approximately 30% higher than the year-earlier level.」

「In e-commerce, the company continually improved its product range in response to changes in customer purchasing patterns associated with restrictions on movement, and increased the on-time delivery rate. As a result, sales at the online supermarket "myAEON2go" increased by approximately 30% from the year-earlier level.」

「In e-commerce, the company strengthened operations centred on two platforms, the 永旺APP (Aeon app) and JD Daojia. Food accounted for 13.6% of Chinese online supermarket sales, exceeding the ratio in Japan.」

「In e-commerce, the company worked to address issues such as inventory maintenance on its proprietary online supermarket platform and shorter picking times, while also strengthening operations using external platforms. Online supermarket sales reached 166.5% of the year-earlier level, and the online supermarket's share of total food sales rose to 13.6%.」

「At the Chinese online supermarket, the company focused sales promotions on categories with strong online demand and strengthened initiatives to complete delivery within one hour from order placement. As a result, sales in the consolidated fourth-quarter period increased by approximately 70% from the previous period, and food accounted for approximately 12% of sales.」

「Meanwhile, sales at AEON (HUBEI) CO., LTD., which operates in Wuhan, where COVID-19 infections first spread, recovered to approximately 1.2 times the year-earlier level in the cumulative consolidated third-quarter period. At the Chinese online supermarket, the company focused sales promotions on categories with strong online demand and strengthened initiatives to complete delivery within one hour from order placement. As a result, sales in the cumulative consolidated third-quarter period increased to 162.5% of the year-earlier level.」

「Sales at the Chinese online supermarket increased to 142.4% of the year-earlier level from January to June. To further expand sales, the company recruited new members and implemented initiatives using social media to direct users to the app screen.」

「In China, sales at AEON (HUBEI) CO., LTD., which operates in Wuhan, where COVID-19 infections first spread last year, recovered to approximately 1.5 times the year-earlier level. At 青島永旺東泰商業有限公司, operations resumed in the tenant areas that had been subject to operating restrictions in the same period a year earlier, and earnings improved at both companies.」

「In response to these changes in customer behavior, we introduced the AEON app at all stores in China and promoted information and services that leveraged the strength of having physical stores, while also significantly expanding the rollout of self-checkout tills.」

「To reduce the burden on customers, the company introduced temporary reductions in interest and other charges and repayment grace periods for credit cards and various loans, and conducted campaigns including cash rebates based on the amount spent by credit card on its e-commerce site.」

「The International Business segment reported operating revenue of ¥118.962 billion, or 101.8% of the same period of the previous year, and operating income of ¥1.433 billion, or 82.4% of the year-earlier level.」

「In China, Beijing Aeon and Qingdao Aeon delivered strong sales during the Chinese New Year period after promotions were timed to coincide with the peak in demand. In addition, beginning with a digital coupon campaign at AEON (HUBEI) CO., LTD., the company promoted the shift to digital promotions delivering coupons and sale information to smartphones.」

「In China, Beijing Aeon and Qingdao Aeon delivered strong sales during the Chinese New Year period after promotions were timed to coincide with the peak in demand. In addition, beginning with a digital coupon campaign at AEON (HUBEI) CO., LTD., the company promoted the shift to digital promotions delivering coupons and sale information to smartphones.」

「Beginning with a digital coupon campaign at AEON (HUBEI) CO., LTD., the company promoted the shift to digital promotions delivering coupons and sale information to smartphones. Some digital promotions achieved coupon redemption rates of over 40%, making a significant contribution to higher sales.」

「In China, Beijing Aeon and Qingdao Aeon delivered strong sales and earnings improved, as promotions were timed to coincide with the peak in demand during the Chinese New Year sales campaign, the largest sales period of the year. In addition, beginning with a digital coupon campaign at AEON (HUBEI) CO., LTD., the company promoted the shift to digital promotions delivering coupons and sale information to smartphones. Some digital promotions achieved coupon redemption rates of over 40%, making a significant contribution to higher sales.」

「In China, revenue increased and earnings improved as the cold wave from January to February contributed to higher sales of winter clothing, early preparations for the Chinese New Year sales campaign proved effective, and food sales were strong following 52-week merchandising initiatives centred on weekday promotions, among other factors.」

「In China, revenue increased and earnings improved by ¥1,036 million, as the cold wave from January to February contributed to higher sales of winter clothing, early preparations for the Chinese New Year sales campaign proved effective, and food sales were strong, driven by weekday promotions, among other factors.」

「In China, revenue and profit increased as a cold wave from January to February contributed to higher sales of winter clothing and early action for the Lunar New Year campaign proved effective. AEON Cornhill and AEON Whampoa, the flagship stores of AEON STORES (HONG KONG) CO., LTD. that were comprehensively revitalized as AEON STYLE stores in 2016, performed strongly and drove the company's results.」

「In response to the expansion of e-commerce, we sought new developments through our omnichannel strategy while strengthening convenience by expanding in-store dining and focusing on fresh and delicatessen products to capitalize on the strengths of our stores.」

「Qingdao AEON (Qingdao Yongwang Dongtai Commercial Co., Ltd.), which closed underperforming stores in the previous fiscal year and concentrated management resources on existing stores through initiatives including the revitalization of core stores, returned to profitability. Overall performance in mainland China also improved substantially.」

「Qingdao AEON (Qingdao Yongwang Dongtai Commercial Co., Ltd.) closed underperforming stores in the previous fiscal year and concentrated management resources on existing stores, resulting in a substantial increase in profit and a return to profitability. At Beijing AEON (Yongwang Commercial Co., Ltd.) and AEON East China (AEON EAST CHINA (SUZHOU) CO., LTD.), ongoing initiatives to improve profitability toward achieving profitability and higher profit also proved effective, leading to steady improvements in profit and loss.」

「In China, continued efforts to strengthen the business platform and improve profitability resulted in improved profit and loss for 2 consecutive quarters. Profit and loss also improved steadily at Qingdao AEON (Qingdao Yongwang Dongtai Commercial Co., Ltd.), AEON East China (Yongwang East China (Suzhou) Commercial Co., Ltd.), and Beijing AEON (Yongwang Commercial Co., Ltd.).」

「In the ASEAN region, AEON VIETNAM CO., LTD. and AEON CAMBODIA CO., LTD. achieved a return to profitability in operating profit and loss for the current consolidated fiscal year. In China, we comprehensively revitalized the flagship stores of AEON STORES (HONG KONG) and reopened them as AEON STYLE stores for the first time overseas, with AEON STYLE Cornhill in July and AEON STYLE Whampoa in September.」

「AEON VIETNAM CO., LTD. achieved higher revenue, higher profit, and a return to profitability during the nine months ended the third quarter of the current consolidated fiscal year. In China, as part of efforts to improve profitability, we comprehensively revitalized the flagship stores of AEON STORES (HONG KONG) and reopened them as AEON STYLE stores for the first time overseas, with AEON STYLE Cornhill in July and AEON STYLE Whampoa in September.」

「In China, as part of efforts to improve profitability, we began comprehensive revitalization of AEON Cornhill and AEON Whampoa, the flagship stores of AEON STORES (HONG KONG) CO., LTD. We also began revitalizing the apparel and home and leisure departments of AEON East, the flagship store of Qingdao AEON (Qingdao Yongwang Dongtai Commercial Co., Ltd.). Along with continuing to strengthen our business platform in China, we worked to improve profitability. Profitability in the overseas business was on an improving trend, with profit improvement achieved from the second quarter of the current consolidated fiscal year.」