Restructuring in the Food Sector, a Vertically Integrated Food Retail Model and a New Discount-Store Format

「Food retail is the Group's core business, with the largest sales scale and concentration of management resources within the Group. Under this medium-term management plan, we will steadily transform the earnings structure so that scale is converted into profit by integrating and coordinating products, store operations and formats, thereby maximizing the contribution to profit growth across the Group.」

「We aim to shift to a business structure in which products, store operations and formats are coordinated as an integrated whole.」

「In addition, effective 1 March 2026, MaxValu Kanto Co., Ltd. integrated Daiei Co., Ltd.'s Kanto business and AEON Market Co., Ltd., launching as the new AEON Food Style Co., Ltd. In the Kinki region, Daiei merged with Koyo Co., Ltd., strengthening competitiveness through the consolidation of procurement and store operations.」

「In August, we entered into a basic agreement with MaxValu Kanto and Daiei concerning the start of discussions on integrating Daiei's Kanto business and AEON Market, and are considering the integration scheduled for March 2026.」

「The Group brought the Maruetsu Soka Delica Center into full-scale operation, expanding its range of prepared foods in response to growing demand and reducing store workload. It began supplying products to approximately 500 of the Group's 660 stores.」

「We are preparing for the November management integration with Inageya and exploring a structure capable of maximizing integration benefits through joint procurement, development and efficiency improvements for logistics and process centers, back-office cost reductions, joint initiatives such as cashless payments and point cards, and the development and expansion of online businesses.」

「Following its management integration with Inageya in November 2024, United Super Markets Holdings Inc. aims to achieve Group sales of ¥1 trillion and a network of 1,000 stores. It also aims to improve operating efficiency and generate synergies through joint procurement, the development of logistics and process centers, back-office cost reductions, joint initiatives such as cashless payments and point cards, and the development and expansion of online businesses.」

「In June, the food business began operating Craft Delica Funabashi, a next-generation prepared-food process center in Funabashi, Chiba, capable of efficiently producing and selling products meeting the quality standards of a full-service restaurant.」

「In November, under the “¥1 trillion supermarket vision for the Kanto region,” our tender offer for shares of Inageya, capped at 51%, was completed.」

「Inageya joined our Group as a consolidated subsidiary, and on 25 April 2023 we entered into a basic agreement to achieve the management integration of U.S.M.H. and Inageya, meaning that Inageya would become a wholly owned subsidiary of U.S.M.H.」

「We reached a basic agreement with Inageya Co., Ltd. and United Super Markets Holdings Inc. toward management integration. In the Tokyo metropolitan area, where competition is expected to intensify further and restrictions on store expansion exist, we aim to strengthen the store network and realize economies of scale.」

「We launched AKIBA Runway, an open-innovation platform for collaboration and co-creation with startups and other companies possessing proprietary technologies, and entered into an exclusive distribution agreement with BEYOND MEAT, INC., a U.S. producer of plant-based meat alternatives. We also brought a fully indoor plant factory into full-scale operation and are working to establish a new integrated business model spanning production through sales.」

「During the current consolidated fiscal year, we plan to put the plant factory into operation, expand the number of stores handling its products, use them in products such as salads and meal kits, and expand them as proprietary products.」

「To build a proprietary supply chain resilient to climate change and natural disasters, we established an integrated production-to-retail model for vegetables through a partnership with PLANTX Co., Ltd., which has specialized expertise in plant factories, and began sales at selected stores.」

「To establish and grow the discount-store business, we are consolidating the business within the Group. In March, Big-A Co., Ltd. and Acolle Co., Ltd. integrated their operations to accelerate dominance in the small-format discount-store business in the Tokyo metropolitan area and establish a new growth strategy. In June, AEON BIG Co., Ltd. merged with MaxValu Nagano Co., Ltd., further consolidating and strengthening the discount-store business.」

「In March, MaxValu Nishinihon Co., Ltd. merged with its subsidiaries Maruнака Co., Ltd. and Sanyo Marуnaka Co., Ltd., becoming the new MaxValu Nishinihon Co., Ltd. While leveraging the management resources and know-how developed by each company, it will further strengthen fresh-food operations and locally focused management and promote greater operating efficiency through digital and operational reforms. To improve customer satisfaction with food, it launched construction of the Okayama Integrated Process Center in June to pursue supply-chain reform involving its own procurement, production and sales, including direct delivery from production areas and fishing ports, with a focus on seasonality, freshness and taste.」

「In October, we announced that Big-A Co., Ltd. and Acolle Co., Ltd., which operate the discount-store business, would integrate their operations in March 2021. The integration aims to accelerate the dominance of the small-format discount-store business in the Tokyo metropolitan area and establish a new growth strategy in response to changes in the operating environment, including the normalization of new lifestyles and changes in working patterns resulting from the spread of COVID-19, growing thrift consciousness and intensifying price competition.」

「Based on the basic agreement concerning the integration of supermarket operations in 6 regions of Japan signed in 2018, management integration was implemented in fiscal 2019 in the Chugoku and Shikoku and Tokai and Chubu regions and in fiscal 2020 in the Hokkaido, Tohoku, Kinki and Kyushu regions, completing the reorganisation of all regions.」

「AEON Hokkaido Co., Ltd. completed its management integration with MaxValu Hokkaido Co., Ltd. on 1 March, taking over 84 supermarkets and launching a new structure with the management vision of becoming a company supporting health and wellness in Hokkaido. To create synergies from the integration and promote new store openings, store revitalization and the food SPA model, the company pursued product development through its newly established Food Product Development Department.」

「In fiscal 2019, we plan to transition to new structures in Chugoku and Shikoku and the Tokai and Chubu region, and to complete the transition to new structures in all regions during fiscal 2020.」

「In September, MaxValu Tokai Co., Ltd. merged with MaxValu Chubu Co., Ltd. in the Tokai and Chubu region. In Hokkaido, AEON Hokkaido Co., Ltd. entered into a merger agreement with MaxValu Hokkaido Co., Ltd. in April and decided to merge in March 2020.」

「In October 2018, AEON entered into a basic agreement on the management integration of the SM business in 6 regions of Japan. Under the agreement, in March 2019, MaxValu Nishinihon Co., Ltd. made Maruнака Co., Ltd. and Sanyo Marуnaka Co., Ltd. subsidiaries in the Chugoku and Shikoku region, launching a new integrated structure. In September, MaxValu Tokai Co., Ltd. merged with MaxValu Chubu Co., Ltd. in the Tokai and Chubu region.」

「In April, イオン北海道㈱ and マックスバリュ北海道㈱ signed a merger agreement in Hokkaido, while マックスバリュ東海㈱ and マックスバリュ中部㈱ signed a merger agreement in the Tokai and Chubu regions. The mergers were scheduled for March 2020 in Hokkaido and September 2019 in the Tokai and Chubu regions, respectively.」

「Ahead of the other regions, MaxValu Nishinihon Co., Ltd., Marunaка Co., Ltd. and Sanyo Marуnaka Co., Ltd., which were to integrate their operations in the Chugoku and Shikoku region, entered into a share exchange agreement in December and began operating under a new integrated structure on 1 March 2019.」

「In October, based on the Group's medium-term management plan, we entered into basic agreements concerning the management integration of the SM business in each region. The principal parties to the integration and the schedule for each region were as follows: Hokkaido, March 2020; Tokai and Chubu, September 2019; Kinki, March 2020; Chugoku and Shikoku, March 2019; Kyushu, September 2019.」

「On 10 October 2018, we and certain domestic consolidated subsidiaries entered into a basic agreement concerning the management integration of the supermarket (SM) businesses. ... The planned completion dates for the management integration in each area are as follows: March 2019, Chugoku and Shikoku; September 2019, Tokai and Chubu, and Kyushu; March 2020, Hokkaido, Tohoku and Kinki.」

「To address changes in the environment surrounding food and enable customers to enjoy richer lives, the Group will strengthen its private-label products in response to growing health and value consciousness and pursue a food SPA model. We will also restructure and integrate the food operations of the Group's core supermarket and general merchandise store businesses. By securing scale, we will promote locally focused operations, a stable supply of fresher products, the development of regional ingredients, property development, and the establishment of logistics and process centers, creating significant differentiation. In addition, we will proceed with the integration of discount-store businesses currently operated by Group companies, with a combined scale of approximately ¥400 billion. By developing proprietary products, narrowing the product range and improving logistics efficiency, we will achieve exceptionally low prices and establish a new discount-store model.」