Overall optimization through vertical merchandising

「販売費及び一般管理費につきましては、物流経費の減少などにより前年同期を下回りました。主に、配送体制の適正化を進めたことによるものです。また、前期に計上した新DC稼働に係る備品購入費等の一巡も物流経費の減少に寄与いたしました。」

「In the logistics strategy project that we have been pursuing, all 6 of our completed distribution centers began full-scale operations in the fiscal year ending March 2026.」

「To reduce the cost of sales, we are continuing to switch products through specification changes and review raw materials, while also developing an in-house manufacturing system starting from raw materials and improving production efficiency through the introduction of the latest equipment. In addition, by making greater use of our strength as a vertically integrated manufacturing, logistics, IT and retail company, we have improved gross margin through measures such as reducing transport costs by making product packaging more compact.」

「For the domestic logistics network, we are pursuing initiatives focused on the optimal placement and consolidation of functions at distribution center locations, with operations, shipping and delivery networks, and business processes as reform themes. We plan to invest approximately ¥350 billion to establish distribution centers at 8 locations nationwide. New distribution centers in Ishikari, Hokkaido, and Kobe, Hyogo Prefecture, began operating by fiscal 2023, followed by new distribution centers in Satte, Saitama Prefecture, Nagoya, Aichi Prefecture, and Sendai, Miyagi Prefecture, in fiscal 2024. We will establish distribution centers at 3 additional locations nationwide while optimizing inventory and lead times and achieving a low-cost structure.」

「We are promoting a logistics strategy project and advancing the optimal placement and consolidation of functions at distribution center locations. During the interim consolidated accounting period, the Sendai distribution center was completed in August 2024. We also began operating double-trailer trucks for long-distance transport between distribution centers to address driver shortages associated with the logistics “2024 problem,” reduce environmental impact and improve logistics efficiency.」

「As a business foundation supporting the realization of our long-term vision, we will further develop the “manufacturing-logistics-retail” business model, in which we control the entire supply chain cultivated since our founding through our own network, into a “manufacturing-logistics-IT-retail” business model by using digital technology, whose importance has increased in recent years.」

「As logistics measures, we are promoting a logistics strategy project aimed at optimizing logistics functions across the entire supply chain, from upstream to downstream, and advancing the optimal placement and consolidation of functions at distribution center locations. In addition to expanding a domestic container transport network using our own vehicles and an in-house logistics network covering the last mile, we are also implementing measures in response to the so-called “2024 problem,” combining relay transport, modal shifts, reviews of delivery frequency and changes to loading and unloading times. During the cumulative third-quarter consolidated period, construction began on the Fukuoka distribution center in September 2023 and the Nagoya distribution center was completed in November 2023.」

「We are promoting a logistics strategy project aimed at optimizing logistics functions across the entire supply chain, from upstream to downstream, and advancing the optimal placement and consolidation of functions at distribution center locations. During the cumulative second-quarter consolidated period, construction began on the Fukuoka distribution center in September 2023.」

「With respect to selling, general and administrative expenses, we worked to control expenses by reducing shipping and delivery costs through the in-house operation of logistics and the relocation of facilities.」

「As global store expansion is expected to accelerate and the Group's sales locations and manufacturing and procurement sources become increasingly dispersed across regions worldwide, we will work to shorten product lead times and curb cost increases resulting from higher raw-material and transportation costs.」

「Alongside strong sales, our continued cost-reduction efforts, including switching to products with lower cost ratios, standardizing raw materials and improving production processes jointly with overseas suppliers, contributed to an improvement in the gross profit margin.」

「As part of our cost-reduction initiatives, the Global Merchandising Division has built a foundation to respond to the global business environment and the rapidly changing external environment, and the common-use rates for products, store layouts and promotional materials have generally progressed as planned. To continue bringing the richness of home living to people around the world, we will promote standardization with the Group's sales companies in each country and pursue economies of scale.」

「In the trading business in China, we reviewed the distribution channels and expanded in-house operations for product development, quality control and trade administration. This is reducing costs, strengthening the product supply structure and further promoting vertical merchandising.」

「In addition, since the previous fiscal year we have maintained the Global Merchandising Division as an organization responsible for building a foundation to respond to the global business environment and the rapidly changing external environment. We have continued to promote further vertical merchandising, reduce logistics costs through downsizing product packaging and other measures, and pursue the standardization of raw materials and products for global product development.」

「As part of the Group's initiatives, we established the Global Merchandising Division in the previous fiscal year as an organization responsible for building a foundation to respond to the global business environment and the rapidly changing external environment. We promoted further vertical merchandising, worked to reduce logistics costs through downsizing product packaging and other measures, and pursued the standardization of raw materials and products for global product development.」

「To provide customers with more affordable products of consistent quality, the Company decided to launch a fabric business at its Ba Ria-Vung Tau plant in Vietnam, with weaving, dyeing and sewing operations. By expanding the supply chain upstream to raw materials, it will build a more competitive and stable product supply structure.」

「We newly established the Global Merchandising Division as an organization responsible for building a foundation to respond to changes in the global business environment and the rapidly changing external environment. In addition to further promoting vertical merchandising and reducing costs and improving quality through the consolidation of raw materials, we worked to reduce logistics costs by reducing package sizes and improving packaging materials.」

「As part of the Group's initiatives, we continued to pursue cost reductions and quality improvements through the consolidation of raw materials as part of our vertical merchandising activities, and worked to reduce logistics costs by reducing package sizes and improving packaging materials. We are also focusing on steadily expanding the manufacture of furniture and carpets at our overseas plants and building a more competitive and stable product supply structure.」

「As part of the Group's initiatives, we continued to pursue cost reductions and quality improvements through the consolidation of raw materials as part of our vertical merchandising activities, and worked to reduce logistics costs by downsizing products for delivery, compressing packaging and improving packaging materials in response to higher freight rates charged by delivery companies. We are also expanding production at our own plants in Vietnam and Thailand and building a structure for the stable supply of more competitive products.」

「As part of the Group's initiatives, we continued to pursue cost reductions and quality improvements through the consolidation of raw materials as part of our vertical merchandising activities, and worked to reduce logistics costs by reducing package sizes and improving packaging materials, while promoting global product development.」

「As part of the Group's initiatives, we continued to promote vertical merchandising, pursue cost reductions and improve quality through the consolidation of raw materials, and work to reduce logistics costs by reducing package sizes and improving packaging materials.」

「As part of the Group's initiatives, we continued to promote cost reductions and quality improvements through the consolidation of raw materials as part of our vertical merchandising activities.」

「As part of the Group's initiatives, we promoted quality improvements and stable supply through the consolidation of raw materials and the development of substitute materials as part of our vertical merchandising activities.」

「In addition, we are continuing our vertical merchandising activities and promoting global product development from the perspective of optimization across the Group, including the common use of raw materials across multiple products and the reduction of package sizes.」

「In addition, we are continuing our vertical merchandising activities and developing products from the perspective of overall optimization, including the common use of raw materials across multiple products, the development of original parts and the reduction of package sizes, while pursuing cost reductions and further strengthening product competitiveness.」

「In addition, we are continuing our vertical merchandising activities, promoting the common use of raw materials across multiple products and developing new suppliers, while developing products through overall optimization and pursuing cost reductions and further strengthening product competitiveness.」

「We promote vertical merchandising and develop products based on overall optimization that considers total costs from raw materials onward, while continuing to pursue cost reductions, quality improvements and stronger product competitiveness. The single mattress “Porta 2,” which received the 2015 Good Design Award, was packaged in a compressed roll to reduce its package size and enable customers to take it home themselves. This reduced transportation costs by more than the cost of the compression process, achieving a reduction in total costs.」