Expansion of the business scope through the acquisition of Shima忠 as a wholly owned subsidiary and business integration

「家具分野においては、品質・機能・デザインを備えた中高価格帯商品 の新たなPB商品シリーズ「yutoria」を立ち上げ、島忠店舗に加え、一部のニトリ店舗においても展開を開始いたしました。また、衣料品分野においてはPB商品「Neasyシリーズ」が引き続き好調に推移しております。」

「During the current consolidated fiscal year, efforts centered on product development, sales-floor improvements and cost reviews to increase operating profit resulted in higher profit. By actively promoting private-label product development, we increased the sales mix of private-label products from the previous fiscal year and improved gross margin.」

「プライベートブランド（以下、「PB」という。）商品の開発を積極的に推進することで、PB商品の売上構成比が前期比で向上し、荒利益率の改善を実現しております。」

「During the current interim consolidated accounting period, efforts centered on product development, sales-floor improvements and cost reviews to enhance profitability resulted in higher profit. By actively promoting private-label product development, we increased the sales mix of private-label products year on year and improved gross margin.」

「株式会社ホームロジスティクス, the Group's logistics subsidiary, and EDION Corporation began collaborating on joint deliveries of home appliances transported overland from Kawasaki to Sendai, with the aim of improving logistics efficiency for both companies and reducing their environmental impact.」

「Private-label product development is also progressing smoothly, including the new development of sports-type bicycles for commuting and school travel, and the addition of 9 stores carrying the private-label apparel brand N easy.」

「The store was built on the site of the former 「島忠横浜店」, which had served local customers for 34 years. It offers home-improvement products on the first floor and furniture, home fashion and daily necessities on the second floor, with a broad lineup including more than 2,200 島忠 private-label products such as bicycles, pet sheets and casual clothing, as well as Nitori private-label products and a wide range of national-brand products.」

「In the 島忠 business, we opened Homes Yokohama Tsurumi in December 2023, the first new store opened since the business integration. Built on the site of the former 「島忠横浜店」, which had served local customers for 34 years, the store offers home-improvement products on the first floor and furniture, home fashion and daily necessities on the second floor. Its broad lineup includes more than 2,200 島忠 private-label products, including bicycles, pet sheets and casual clothing, as well as Nitori private-label products and a wide range of national-brand products.」

「In the 島忠 business, we are reviewing the product lineup. Various products, including newly launched private-label mini-velo bicycles, have been well received. We are also restructuring logistics centers in preparation for accelerating the rollout of private-label products. In addition, we have begun an initiative in which employees use products themselves so that customer-perspective feedback can be reflected in developing better products.」

「In the 島忠 business, we are reviewing the product lineup and have newly launched mini-velo bicycles as private-label products. We are also restructuring logistics centers in preparation for accelerating the rollout of private-label products.」

「During the first 6 months of the current consolidated fiscal year, in addition to making Nitori points available for earning and redemption at all 島忠 stores and on the e-commerce site 「シマホネット」, we introduced nationwide delivery at a uniform fee using the Group's delivery network, making shopping at 島忠 and Nitori more convenient. We are also renovating sales floors and facilities at existing stores to improve customer convenience. We continue to review our product lineup and, as a key Group initiative, will expand the development of private-label products and strengthen our product offering to contribute to comfortable living for customers in each region.」

「During the first 3 quarters of the current consolidated fiscal year, Nitori points became available for earning and redemption at all 島忠 stores and on the e-commerce site 「シマホネット」. The earn rate is 1 point for every ¥100 spent, making shopping at 島忠 and Nitori more rewarding.」

「In the previous consolidated fiscal year, we made 株式会社島忠 a consolidated subsidiary and have been expanding our business areas beyond furniture and interior products into home-improvement merchandise, while providing customers with comprehensive home-related services and developing businesses that address their diverse lifestyles.」

「During the nine-month period ended 30 November, the Group as a whole focused on various initiatives to realise synergies at an early stage, including developing private-label products in the home-improvement merchandise business, reducing expenses through the integration of purchasing functions, and opening Nitori Homes Miyahara, the first integrated store combining Nitori and 島忠.」

「During the first 6 months of the current consolidated fiscal year, we actively reviewed the product lineup and improved gross margin by expanding the range of Nitori products handled at 島忠 stores and developing private-label home-improvement products. We also worked to reduce expenses by integrating purchasing functions for consumables and supplies, thereby containing selling, general and administrative expenses.」

「During the first 3 quarters of the current consolidated fiscal year, as the first step toward realizing synergies at an early stage, we began selling some Nitori products at 島忠 stores. Going forward, we will strengthen our internal integration framework, spanning product development, logistics and store-opening policies, to further develop the business and maximize corporate value.」

「We decided to conduct this tender offer because we believe that the business integration through the tender offer and the making of the target company a wholly owned subsidiary will enable the two companies to achieve synergies through close collaboration, expand our business areas beyond furniture and interior products into home-improvement and general merchandise, provide customers with comprehensive home-related services, and develop businesses that address their diverse lifestyles.」