GMS Store Revitalization and Product and Sales-Floor Reform

「In the GMS business, 11 new stores were opened and 6 existing stores were closed. Efforts were also made to renovate existing stores in line with the characteristics of their respective trading areas, resulting in capital expenditures of ¥150,957 million.」

「At physical stores, use of the new employee device All-in-One Device, which incorporates AI Kakaku, AI Order, the Product Location Search System, and other functions, narrowed differences in employees' experience and knowledge while improving the efficiency of price changes, expiry-date and inventory checks and ordering, and product replenishment.」

「Self-checkout rollout in food sales areas was nearly complete across all stores. The number of stores offering Regigo, which allows customers to scan products while shopping in each sales area, check the total, and pay together at an unattended checkout machine, exceeded 300 in June and reached 337 stores at the end of the current consolidated fiscal year.」

「In apparel, where reforms are being pursued with the gross margin targets of vertically integrated specialty retailers in mind, the company is introducing a specialty-store model across 6 categories: daily casual, next age (younger customers), sports life, second life (senior customers), occasionwear, and general merchandise. The model reforms ways of working, including the sales-floor environment, product lineup, and customer service, and had expanded to a cumulative total of 6 stores by the end of the interim accounting period. ... A further 8 stores are scheduled to adopt the model in the second half.」

「Self-checkout rollout in food sales areas was nearly complete, and the number of stores offering Regigo, which allows customers to scan products as they shop in each sales area, monitor the total, and pay together at an unattended checkout machine, exceeded 300 in June 2024.」

「At イオンリテール㈱, the rollout of self-checkout lanes in food sales areas was nearly complete. In May 2024, the scope of AI Kakaku, which reduces food waste by presenting the optimal markdown rate for the specific day and time, was expanded from prepared foods and daily-delivery products to the meat and seafood departments. Use of AI also advanced through measures such as nearly doubling the number of products covered by AI Order, which forecasts demand and optimizes product ordering, in June 2024.」

「In food, products were renewed to increase added value in Topvalu and the delicatessen business. In frozen foods, a growth area, the opening of @FROZEN specialty stores and expansion of existing sales areas resulted in food sales at existing stores increasing to 103.4% of the year-earlier period.」

「In the GMS and SM businesses, the introduction of self-scanning and self-checkout systems shortened checkout queues, improving customer convenience and operational efficiency at stores and thereby increasing labor productivity.」

「The current consolidated fiscal year was positioned as the final year of the revival period, and reforms were pursued on two fronts: structural reform and the creation of a foundation for growth. ... The introduction of AI Kakaku and a review of the product lineup also proved effective, resulting in a substantial year-on-year improvement in the markdown rate in the delicatessen business.」

「AEON STYLE Online nearly doubled the number of products offered from the previous year, and sales during the period increased substantially to 238% of the year-earlier period.」

「The Do-Anything Checkout Regigo service was newly rolled out at 36 stores, bringing the combined total for the company and AEON RETAIL STORE Co., Ltd. to 58 stores as of the end of August.」

「In addition, 3 new stores were opened and 12 existing stores were revitalized during the cumulative first-quarter period.」

「In addition to these initiatives, inventory reductions were actively pursued as a measure to improve operating efficiency. Inventory was reduced by approximately 20% from the beginning of the fiscal year, and the gross profit margin also showed a trend of improving each period.」

「AEON STYLE Fujimino in Saitama Prefecture held its grand opening. In terms of products, sales of the autumn/winter series from Home Coordy, which addresses demand for spending more time at home, remained strong. Products included a raised kotatsu suitable for teleworking, cold-weather accessories, and a two-compartment hot pot for enjoying hot-pot meals at home.」

「For the online supermarket business, delivery slots were increased, while the number of stores offering pickup at dedicated counters or parking areas was expanded to 178 as of the end of August, diversifying pickup options. Regigo, a service introduced to meet the growing demand for contactless, no-interaction shopping during the COVID-19 pandemic, had been rolled out at 11 stores as of the end of August.」

「During the three months ended the first quarter, AEON Retail Co., Ltd. revitalized 20 existing stores and opened 5 new stores.」

「During the first 3 quarters of the current fiscal year, AEON Retail Co., Ltd. responded to the increasingly diverse needs of local customers by revitalizing 33 existing stores and opening 9 new stores.」

「During the six months ended the second quarter, AEON Retail Co., Ltd. opened 8 stores. At existing stores, it revitalized 22 stores during the six-month period to meet the diversifying needs of local customers.」

「During the first quarter of the current fiscal year, AEON Retail Co., Ltd. opened 4 stores. AEON Style Kamiasao, which opened in March in Kanagawa Prefecture, offers Koko de Deli, where customers can eat steak, pasta and other dishes on site, as well as a product range centered on food, including fresh foods and prepared foods. It also offers pharmaceuticals and prescription dispensing, operating as a food supermarket where local customers can purchase everything they need in one place.」

「Meanwhile, 29 existing stores were revitalized. AEON Style Itabashi in Tokyo, which was converted to the AEON Style format in early November, strengthened its food offering and introduced large specialty-store sections such as Kids Republic, Glam Beautique, HOME COORDY and iC.」

「During the nine months ended the third quarter, AEON Retail Co., Ltd. opened 8 stores. Meanwhile, it revitalized 29 existing stores. AEON Style Itabashi in Tokyo, which was converted to the AEON Style format in early November, recorded November sales of 108.2% and customer traffic of 110.6% of the previous fiscal year.」

「During the six months ended the second quarter, AEON Retail Co., Ltd. opened 4 stores. It also revitalized 18 existing stores, and gross margin improved by 0.2 percentage points through fewer price changes and growth in Topvalu sales. In addition, it promoted efficient expense management, improving operating income by ¥3.020 billion from the previous-year period.」

「During the three months ended the first quarter, AEON Retail Co., Ltd. opened 3 stores. It also revitalized 12 existing stores, improving the number of items purchased per customer at existing stores to 102.3% of the previous-year period.」

「During the fiscal year, AEON Retail Co., Ltd. opened 9 stores and revitalized 51 existing stores. As a result, the number of items purchased per customer at existing stores improved to 101.1% of the previous fiscal year’s level after adjustment for the day of the week. In addition to an improvement in gross margin driven by growth in sales of Topvalu products, efforts to reduce expenses, including more efficient promotional spending, proved effective, and operating income improved by ¥3.430 billion from the previous fiscal year.」

「During the six months ended the second quarter, AEON Retail Co., Ltd. opened 4 new stores and revitalized 39 stores to strengthen product assortments and services in response to diversifying needs.」

「During the three months ended the first quarter, AEON Retail Co., Ltd. opened 2 new stores and revitalized 23 stores to provide product assortments and services that meet customers’ diversifying needs. Existing-store sales were 97.3% of the previous-year period, but gross margin continued to improve as product and sales-floor reforms took hold, exceeding the previous-year period by 0.2 percentage points. As a result of efforts to control expenses, selling, general and administrative expenses at existing stores were 97.8% of the previous-year period, and operating income improved by ¥1.693 billion from the previous-year period.」

「The gross margin for the fiscal year continued to improve as product and sales-floor reforms initiated in the previous fiscal year took hold, exceeding the previous fiscal year’s result by 0.8 percentage points. Selling, general and administrative expenses at existing stores were 98.5% of the previous fiscal year’s level. As a result, operating income improved by ¥3.557 billion from the previous fiscal year, resulting in higher revenue and profit.」

「As part of its support for working women and dual-income households, the company held AEON Night Market in the food area from 6 p.m. to 9 p.m., which received strong customer support and increased sales during those hours. In addition, it held Black Friday for 3 days from 25 to 27 November as the first such event by a major general merchandise retailer in Japan, attracting significant attention. Existing-store sales during the period were at least 115% of the same weekdays in the previous year, while apparel sales increased particularly strongly to at least 130%.」

「During the six months ended the second quarter, AEON Retail Co., Ltd. revitalized 38 existing stores to meet the diversifying needs of local customers.」

「During the three months ended the first quarter, AEON Retail Co., Ltd. opened 4 new stores and revitalized 21 existing stores to meet the diversifying needs of local customers.」