Proactive Sales and Rigorous Cost Management

「Under cost structure reform, we improved productivity by improving operational efficiency through the use of an automatic ordering system equipped with demand forecasting and the introduction of electronic shelf labels, reducing electricity costs through efforts to lower usage, and reviewing all expenses while thoroughly identifying and eliminating waste. As a result, selling, general and administrative expenses decreased from the year-earlier period (down 2.7% year on year).」

「We will also advance cost-structure reform by reviewing expense unit prices and usage, expanding employee capabilities and promoting cross-functional ways of working.」

「This year, we have identified the execution of the Medium-Term Management Plan, strengthening sales capabilities, and cost structure reform as our priority policies. We will clarify the issues to be addressed and the necessary responses, establish cross-organizational task forces to advance these policies, and promote the formulation and implementation of specific measures.」

「Selling, general and administrative expenses rose 2.3% to ¥120.788 billion due to continued aggressive wage increases and store investment, as well as higher utilities expenses resulting from rising electricity unit prices. Operating profit fell 12.9% to ¥4.501 billion.」

「Selling, general and administrative expenses were reduced substantially by reviewing electricity contracts and cutting consumption, while productivity was improved by reducing store workloads through increased fresh-food supplies from process centres to stores. We also implemented substantial wage increases in response to rising prices and to improve employee satisfaction. In addition, SG&A expenses for revitalising existing stores, which we are strongly promoting, promotional expenses such as the 新生フジ誕生祭, and head-office relocation expenses were recorded as planned. As a result, SG&A expenses exceeded the level of the same period of the previous year. (Selling, general and administrative expenses: up 6.0% year on year; personnel expenses: up 8.1%; utilities expenses: down 21.5%)」

「In cooperation with the AEON Group, we reviewed contracted electricity capacity and significantly reduced electricity unit prices. We also reduced costs by creating integration synergies, including the inexpensive procurement of LED lighting, equipment and auxiliary materials through joint initiatives by フジ・Ｒ and ＭＶ西日本. In addition, we worked to improve operational efficiency through digitalisation, raise productivity by reducing labour requirements, and save on office supplies and consumables. (Selling, general and administrative expenses: up 0.9% year on year; personnel expenses: up 3.9%; electricity charges: down 15.2%)」

「Although we raised wages to respond to inflation and improve employee motivation, utilities expenses fell below the initial plan as we reduced electricity consumption, converted shelf lighting to LED, and replaced refrigerated cases. We also worked to improve operational efficiency through digitalization, raise productivity through labor-saving measures, and reduce office supplies and consumables expenses, but selling, general and administrative expenses exceeded the same period of the previous year (selling, general and administrative expenses up 3.2% year on year; personnel expenses up 5.1%; company-wide electricity consumption down 6.7%; electricity costs down 9.8%).」

「Utilities expenses, mainly electricity costs, exceeded the same period of the previous year, although we worked to reduce electricity consumption across the company and lower unit prices by changing contracts. We also raised wages to respond to inflation and improve employee motivation, while working to improve productivity through more efficient and labor-saving operations and to control costs. However, selling, general and administrative expenses exceeded the same period of the previous year (selling, general and administrative expenses up 5.8% year on year; personnel expenses up 5.0%; company-wide electricity consumption down 8.2%; electricity costs up 27.2%).」

「Amid rising costs across the board, the sharp increase in utilities expenses, particularly electricity costs, had a significant impact on results. Although we proactively worked across the company to reduce electricity consumption, improve productivity through more efficient and labor-saving operations, and review advertising expenses, selling, general and administrative expenses exceeded the previous year (selling, general and administrative expenses up 5.8% year on year; company-wide electricity consumption down 1.0%; electricity costs up 49.6%).」

「Although we proactively worked across the company to reduce electricity consumption and improved productivity through more efficient and labor-saving operations and reviewed advertising expenses, selling, general and administrative expenses exceeded the previous year (selling, general and administrative expenses up 6.6% year on year; electricity costs up 52.6% year on year).」

「Based on this understanding, we continuously analyze purchasing behavior from the customer’s perspective and focus on responding to the latest needs, while working to reduce losses through rigorous product management and cut electricity costs by reducing consumption.」

「We also strengthened product management and worked to reduce disposal losses and inventory.」

「In addition, we strengthened product management and worked to reduce disposal losses and inventory.」

「Meanwhile, by improving ordering accuracy and reducing inventory, we reduced losses and raised the gross profit margin. We also reduced or canceled sales promotions and events, refrained from business trips because of travel restrictions, moved meetings and training online, and systematically reduced or restrained capital investment and other expenditures. As a result of these efforts to cut selling, general and administrative expenses, operating profit and ordinary profit exceeded the initial outlook and increased year on year.」

「Meanwhile, at our stores, we reduced losses and improved the gross profit margin by improving ordering accuracy and reducing inventory. We also reduced selling, general and administrative expenses by scaling back or canceling sales promotions and events, refraining from business trips because of travel restrictions, moving meetings and training online, and systematically reducing or restraining capital investment and other expenditures」

「In sales, we aim to increase customer support by pursuing strong stores through deeper merchandising that meets customer needs, greater use of customer feedback, and profit improvement through a review of our cost structure. Merchandising refers to all activities required to provide products to customers.」

「“Changing our systems to make the business profitable!”」

「The company designated its management policy for fiscal 2019 as "Improve our ability to sell and make work enjoyable! Think and act for customers," and is pursuing various initiatives to build a corporate culture in which employees can consistently act from the customer's perspective, based on the policies of "establishing a customer perspective and a local-market focus," "creating new systems and reforming work," and "developing human resources and improving employee satisfaction."」

「“Creating new systems and reforming work practices”」

「In the general merchandise retailing business, the company designated its management policy for fiscal 2019 as "Improve our ability to sell and make work enjoyable! Think and act for customers," and is pursuing various initiatives to build a corporate culture in which employees can consistently act from the customer's perspective, based on the policies of "establishing a customer perspective and a local-market focus," "creating new systems and reforming work," and "developing human resources and improving employee satisfaction."」

「In the general merchandise retail business, we positioned fiscal 2018 as a year of renewed beginnings, taking a new step forward after our 50th anniversary. We adopted “Seriously, enjoyably, and anew: delivering customer satisfaction and improving employee satisfaction,” which is also our new action guideline, as the theme of our management policy, with “establishing the new action guidelines,” “reviewing the business structure and expanding operating profit,” and “building a strong management foundation” as our policies. We are pursuing various initiatives to further refine our corporate culture, which values the customer’s and local community’s perspectives.」

「In the general merchandise retail business, we positioned fiscal 2018 as a year of renewed beginnings, taking a new step forward after our 50th anniversary. We adopted “Seriously, enjoyably, and anew: delivering customer satisfaction and improving employee satisfaction,” which is also our new action guideline, as the theme of our management policy, with “establishing the new action guidelines,” “reviewing the business structure and expanding operating profit,” and “building a strong management foundation” as our policies」

「As priority initiatives, we will work to “think and act from the customer’s perspective,” “coexist and prosper with local communities,” “provide detailed merchandising and services tailored to customer and local needs,” “restructure the business and optimize costs,” “strengthen functions supporting sales and management,” and “develop and make use of our people’s strengths.”」

「As priority initiatives, we will work to “deliver customer satisfaction,” “strengthen our ties with local communities,” “master the basics and take on new challenges,” and “improve cost performance.”」

「“An aggressive sales approach and rigorous cost management”」

「“An aggressive sales approach and rigorous cost management”」

「“An aggressive sales approach and rigorous cost management”」