Overhaul of the PB, Logistics and IT Business Infrastructure

「In addition, supply from Craft Delica Funabashi, a process center for prepared-food production in Chiba Prefecture, rose to 118.7% of the prior-year period, with the number of recipient Group companies expanding to 14. This is improving the quality of prepared foods and the efficiency of store operations.」

「また、惣菜加工を行うプロセスセンター「クラフトデリカ船橋」(千葉県船橋市)の供給高は同118.7％となり、供給先はグループ14社まで拡大しました。」

「Beginning in August, 19 operating and functional companies started using integrated IDs for grocery, daily-use and other products.」

「Topvalu is developed around 3 brands, Topvalu Best Price (price-focused), Topvalu (value-added) and Topvalu Green Eye (environmentally responsible), while we are also expanding local PBs in collaboration with regional producers and PBs in highly specialized fields.」

「For Topvalu, our private-label brand, we are using the Group's scale to build a supply chain covering the entire process from upstream to downstream, from strategy and planning through store operations. This enables us to provide high-quality products at consistently attractive prices while also working to improve gross profit margins.」

「Through these initiatives, we aim to achieve total PB sales of ¥2 trillion by fiscal 2025. In addition, by 2025 we will develop all Topvalu products to meet the 3R requirements of Reduce, Reuse and Recycle, creating a system in which customers' everyday shopping helps reduce environmental impact.」

「In food, Craft Delica Funabashi, a next-generation prepared-food process center capable of manufacturing and selling products efficiently while achieving the quality served at full-service restaurants, began operations in June in Funabashi, Chiba. In July, the new logistics center AEON Fukuoka XD in Higashi Ward, Fukuoka, began full-scale operations.」

「As part of efforts to strengthen earnings through the internalization of product planning, manufacturing and sales, in apparel we renewed the brand from Topvalu Collection to TVC, a daily casual brand for families, in March 2024. In food, we launched operations in June at Craft Delica Funabashi in Funabashi, Chiba, a next-generation prepared-food process center capable of manufacturing and selling products efficiently while achieving the quality served at full-service restaurants.」

「In October, we and Mujin Co., Ltd. agreed to form a partnership as technology partners to build a next-generation automated model, launching the next-generation upgrade of the AEON Group's shared logistics network.」

「To achieve total PB sales of ¥2 trillion in 2025, we are targeting ¥1.5 trillion this fiscal year, including ¥1 trillion from the 3 brands Topvalu, Topvalu Best Price and Topvalu Green Eye.」

「This fiscal year, to achieve total PB sales of ¥1.5 trillion and sales of ¥1 trillion from the 3 Topvalu brands, we will convert half of approximately 5,000 products, excluding fresh foods and delicatessen products, into new or renewed products.」

「This fiscal year, we are targeting ¥1.5 trillion in total private-label sales, including ¥1 trillion from 3 Topvalu brands. In addition, by 2025, we will shift all Topvalu products to environmentally responsible 3R products developed to incorporate one or more of Reduce, Reuse and Recycle.」

「To strengthen the digital business, initiatives in collaboration with the US-based Boxed, Germany's SIGNA Sports United GmbH and the UK's Ocado, with which we already have investment and partnership relationships, have begun. We will accelerate business growth in both B2C and B2B, making this a new pillar of growth for the Group.」

「For products, we strengthened development of the private-label brand eatime, bringing the total number of products handled to 104 as of the end of the third quarter of the current consolidated fiscal year. On the expense side, we advanced the introduction of full and semi-self-service checkouts, productivity improvement initiatives, and a review of personnel allocation between headquarters and stores.」

「In December, we announced an investment in SIGNA Sports United GmbH, which operates Europe's No. 1 sports e-commerce platform. In addition to bicycle assembly and automated logistics systems, SSU has expertise in optimal pricing using AI through its proprietary software and strong customer recommendations through personalized apparel customization. Through this investment, we will broadly apply SSU's expertise, actively use its sports e-commerce business model and e-commerce expertise, and accelerate the digital shift.」

「In April, as part of the digital shift, we announced an investment in US venture company Boxed. The company has expertise in highly effective AI-based customer recommendations and a proprietary, highly automated logistics system. By building and strengthening partnerships in data platforms and logistics, we will acquire Boxed's expertise and maximize customer satisfaction.」

「In addition to building the business platform, we will invest ¥500 billion over 3 years in private-label expansion and digital initiatives, including e-commerce and the digitalization of stores, with the aim of completing our food and digital transformations at an early stage.」

「Our private-label products, logistics and IT platforms currently serve as sources of differentiation from competitors and cost competitiveness. We will renew these business platforms, which will form the foundation of our future corporate competitiveness.」