Strengthening the Home Improvement Business’s Expertise and Regional Market Share

「As a result of continuing group-wide supplier negotiations led by Alenza Holdings, reviewing procurement terms and raising the sales mix of private-label products, the gross profit margin improved by 2 percentage points to 32.8%.」

「We identified increasing the proportion of sales from private-label products and developing leading regional products as priority issues, and worked to improve the gross profit margin.」

「To strengthen its earnings base, the company identified achieving a 20% sales mix for private-label products and developing the leading products in each region as priority initiatives under its merchandising reform program, while working to reduce costs, curb markdowns and address losses.」

「Operating revenue in the home center business was ¥66,189 million, up 4.6% year on year, and operating profit was ¥1,852 million, down 16.0% year on year. Revenue increased but profit declined because selling, general and administrative expenses rose due to higher personnel, utility and cashless payment processing costs, as well as renovation costs including those for 5 former Home Center Ant stores.」

「Operating revenue in the home center business was ¥93,539 million, down 0.3% year on year, and operating profit was ¥2,847 million, down 24.9% year on year. The company focused on developing private-label products and opened new professional shops specializing in tools and materials. However, consumers became more inclined to economize due to higher prices, particularly for daily necessities, and stay-at-home demand declined. Existing-store sales at the 3 companies of 株式会社ダイユーエイト, 株式会社ホームセンターバロー and 株式会社タイム combined declined 1.5% year on year, resulting in lower revenue.」

「Operating revenue in the home center business was ¥63,269 million, down 0.1% year on year, and operating profit was ¥2,206 million, down 27.2% year on year. To strengthen its earnings base, the company focused on developing private-label products and opened new professional shops specializing in tools and materials. However, consumers became more inclined to economize due to higher prices, particularly for daily necessities. Existing-store sales at the 3 companies of 株式会社ダイユーエイト, 株式会社ホームセンターバロー and 株式会社タイム combined declined 1.5% year on year, resulting in lower revenue. Despite efforts to reduce expenses, expenses increased due to surging resource prices and other factors, resulting in lower profit.」

「Operating revenue in the home center business was ¥32,413 million, down 1.0% year on year, and operating profit was ¥1,437 million, down 26.9% year on year. Despite efforts to reduce expenses, profit declined as utility and other costs increased due to surging resource prices.」

「Operating revenue in the home center business was ¥124,962 million, up 1.6% year on year, and operating profit was ¥4,620 million, down 8.7% year on year. Profit declined due to higher utility and logistics costs and increased cashless payment processing fees, among other factors.」

「Operating revenue in the home center business was ¥93,857 million, up 1.8% year on year, and operating profit was ¥3,793 million, down 15.5% year on year. In this business, the company worked to improve margins by expanding the number of private-label products handled and strengthening sales, but profit declined due to higher utility and logistics costs and increased cashless payment processing fees, among other factors.」

「In this business, the gross profit margin improved as the company accelerated the development and expanded sales of private-label products, but profit declined due to higher utility costs and other expenses. The company opened 1 store and closed 1 store, bringing the group total to 158 stores as of the end of the second quarter.」

「In this business, the company accelerated the development of private-label products and expanded sales, improving the gross profit margin. However, expenses, mainly facility costs, increased, resulting in lower profit.」

「In this business, the company worked to improve product costs while advancing the development and sale of private-label products. In its stores, 株式会社ダイユーエイト opened 3 stores and closed 1 store, 株式会社ホームセンターバロー opened 2 stores, and 株式会社タイム opened 1 store, bringing the group total to 157 stores as of the end of the third quarter.」

「In this business, the company worked to improve product costs while advancing the development and sale of private-label products. In its stores, 株式会社ダイユーエイト opened 2 stores and closed 1 store, 株式会社ホームセンターバロー opened 1 store, and 株式会社タイム opened 1 store, bringing the group total to 155 stores as of the end of the second quarter.」

「In this business, the company worked to improve product costs while advancing the development and sale of private-label products. In its stores, 株式会社タイム opened 1 store and 株式会社ダイユーエイト closed 1 store, bringing the group total to 152 stores as of the end of the first quarter.」

「At the 3 companies of 株式会社ダイユーエイト, 株式会社ホームセンターバロー and 株式会社タイム, customer traffic at existing stores increased 5.8% year on year and existing-store sales increased 7.7%. The business as a whole reported higher revenue and profit as the benefits of the integration improved product costs and advanced the introduction of private-label products, improving the gross profit margin, while curbing flyer-based promotions and reducing the expense ratio as sales increased.」

「In this business, product costs continued to improve as a benefit of the business integration, while the introduction of private-label products expanded further, improving the gross profit margin. The company opened 6 stores and closed 2 stores, bringing the group total to 152 stores as of the end of the third quarter.」

「In this business, product costs continued to improve as a benefit of the business integration, while the introduction of private-label products expanded further, improving the gross profit margin. In its stores, 株式会社ダイユーエイト opened 2 stores and closed 1 store, bringing the group total to 149 stores as of the end of the second quarter.」

「In this business, product costs improved as a benefit of the business integration, while the introduction of private-label products gradually expanded, improving the gross profit margin. In its stores, 株式会社ダイユーエイト opened 1 store and closed 1 store, bringing the group total to 148 stores as of the end of the first quarter.」

「For private-label products, the company is gradually developing and introducing the new Alleanza brand while selling the former products across the group and adjusting inventory.」

「In this business, while the "Alenza Holdings Founding Festival," a sales promotion campaign conducted across the Alenza group to mark the business integration, got off to a strong start, the company held joint supplier negotiations to improve its product offering. In September, it revised its organizational structure so that the procurement functions formerly held by the holding company changed from the holding company to the operating companies, 株式会社ダイユーエイト and 株式会社タイム, while the holding company promoted product development and joint procurement to reduce costs and steadily strengthen regional competitiveness and create synergies.」

「In April, the company opened its second store for professionals and tradespeople, "PROsite名港店" in Minato-ku, Nagoya, Aichi Prefecture, by converting an existing store to the new format. It expanded building materials, tools and hardware, workwear and other products suited to the characteristics of the local market. In June, it opened "ダイユーエイト小高店" in Minamisoma, Fukushima Prefecture. As of the end of the first quarter, the group had 147 stores in total.」

「In this business, the company expanded its building and agricultural materials to pursue greater specialization, while aiming to become the leading store in each region by strengthening lifestyle categories such as automotive tire replacement, pet supplies and outdoor products. In September 2018, it installed the 12th Tire Ichiba location at "HCバロー正木店" in Gifu, Gifu Prefecture. At "HCバロー稲沢平和店" in Inazawa, Aichi Prefecture, where the product mix was reviewed by department beginning in January 2019, the company introduced specialist tools, hardware and other products whose range had been expanded at "PROsite各務原インター店," which had been converted to the specialist format in the previous fiscal year.」

「In this business, the company expanded its building and agricultural materials to pursue greater specialization, while aiming to become the leading store in each region by strengthening lifestyle categories such as automotive tire replacement, pet supplies and outdoor products. In September 2018, it installed the 12th Tire Ichiba location at "HCバロー正木店" in Gifu, Gifu Prefecture. Following the renovation of "HCバロー羽島インター店" in June, it renovated "HCバロー各務原中央店" in Kakamigahara, Gifu Prefecture, in November and expanded its outdoor product offering and other merchandise.」

「In June 2018, the company renovated "HCバロー羽島インター店" in Hashima, Gifu Prefecture, expanding its range of outdoor products and other merchandise. In September, it installed the 12th Tire Ichiba location at "HCバロー正木店" in Gifu, Gifu Prefecture.」

「In this business, the company expanded its building and agricultural materials to pursue greater specialization, while aiming to become the leading store in each region by strengthening lifestyle categories such as automotive tire replacement, pet supplies, and outdoor and leisure products.」

「To further strengthen its specialist offerings, the company converted an existing store to a new format in February 2018 and opened "PROsite各務原インター店" in Kakamigahara, Gifu Prefecture, a specialist format targeting construction professionals and tradespeople. Before opening the store, the company acquired shares in 株式会社ファースト, an online-only building materials and tool retailer headquartered in Miyagino-ku, Sendai, Miyagi Prefecture, making it a subsidiary. The acquisition was intended to build functions supplementing its range of tools, hardware and other products and to operate online sales more efficiently.」

「In addition, the "Tire Ichiba" tire installation and storage service has expanded to 11 stores, including "HCバロー久居インター店" in Tsu, Mie Prefecture, "HCバロー小牧岩崎店" in Komaki, Aichi Prefecture, and "HCバローミタス伊勢店" in Ise, Mie Prefecture, which were introduced as part of store renovations.」

「In April 2017, we opened HC Valor Hamamatsu Hamakita Store in Hamamatsu, Shizuoka, marking our first entry into Shizuoka Prefecture, bringing the number of stores to 36 as of the end of the second quarter. Based on the characteristics of the store's trade area, we designated outdoor and leisure products as priority categories and rolled out the assortment and merchandising methods introduced at the new store to other stores. Tire Market, the vehicle tyre fitting and storage service, was expanded to a total of 10 stores, including the renovated HC Valor Hisai Inter Store in Tsu, Mie, and HC Valor Komaki Iwasaki Store in Komaki, Aichi.」

「In April 2017, we opened HC Valor Hamamatsu Hamakita Store in Hamamatsu, Shizuoka, marking our first entry into Shizuoka Prefecture, bringing the number of stores to 36 as of the end of the first quarter. Also that month, at HC Valor Inazawa Heiwa Store in Inazawa, Aichi, we expanded the vegetable direct-sales section and installed the highly requested meat section as the final stage of renovations under way since the previous fiscal year.」

「In February 2017, we opened a separate Pet Building.」

「In September 2016, we opened HC Valor Kani Sakado Store in Kani, Gifu. Its expansive sales floor of approximately 3,400 tsubo offers a broad range of specialist products such as building materials, and its service offering includes Tire Market, a vehicle tyre fitting and storage service, and Benri Valor Kani Sakado Store, a household support service. Ahead of the opening, we closed a total of 3 stores, including 2 nearby small-format stores, bringing the number of stores to 35 as of the end of the third quarter. In November 2016, we also installed the first self-service petrol station at HC Valor Inazawa Heiwa Store in Inazawa, Aichi, to further increase the flagship store's ability to attract customers.」

「In September 2016, we opened HC Valor Kani Sakado Store in Kani, Gifu. Its expansive sales floor of approximately 3,400 tsubo offers a broad range of specialist products such as building materials, and its service offering includes Tire Market, a vehicle tyre fitting and storage service, and Benri Valor Kani Sakado Store, a household support service.」

「We also renovated 4 stores with sales floors second in size only to the flagship store, expanding their assortments in key categories.」

「In the home improvement business, we will strengthen our specialist capabilities, continue opening stores and expand our regional market share.」