Message from Executive Officer in Charge of Retail Strategy

The most significant and top-priority theme in the JT-2028 Management Plan is strengthening profitability of the physical store business. We will move away from our previous focus on scale and the number of stores and shift toward a sustainable, highly profitable business structure that does not depend on the number of physical stores. As part of this initiative, we will systematically close 15 unprofitable stores where profitability improvements are not expected. By optimally allocating the human capital freed up by these store closures, not only to existing stores but also to future growth areas such as home renovation and mobile services, we aim to improve profitability across the entire company.
      Our future store deployment strategy will move away from the one-size-fits-all approach we have taken in the past and instead implement marketing by store type that takes into account the regional characteristics and competitive environment for each store type, such as stand-alone stores, mall stores, and hybrid stores. Driven by our frontline teams, we will promote diverse store layouts and pricing strategies tailored to customer needs, thereby rebuilding the unique experiential value that physical stores can offer. Furthermore, we will proceed with transitioning some of our existing stores into outlet formats to enhance our competitiveness and attract more customers in the region. At our outlets, we will fully leverage our advanced logistics system, including the Kansai Ibaraki Logistics Center, our largest logistics hub, to thoroughly reduce slow-moving inventory, improve profitability through the early introduction of new products, and improve inventory turnover, thereby building a sound financial foundation.

The ideal image for the new business model we put forth in the JT-2028 Management Plan is to realize the vision of a “local electronics store that is also a mass retailer.” The essence of this strategy, which takes a proactive approach to creating new added value by leveraging our frontline capabilities, goes beyond simply providing technical services via our Rapid Response Service (delivery, repair, and construction). Our true goal is to pursue Wholehearted Customer Service, utilizing online technology to provide comprehensive, customized support tailored to the specific problems faced by each and every customer and deepen our relationships of trust.
      To create an environment where we never say “We can’t do that!” to our customers, we will strengthen service center training for store staff, ensuring they review and thoroughly master the fundamentals of delivery, construction, and repair services, and elevate their ability to resolve issues on the sales floors. And to rapidly expand this service throughout Kansai, we will roll out Wholehearted Customer Service across key areas such as the Hokusetsu area (northern Osaka), Nara, the Hannan area (southern Osaka) and Wakayama, Kyoto, and eastern Hyogo. By reallocating the human capital freed up by store closures, we will establish a community-focused organizational structure.
      In particular, we will thoroughly instill the concept of “local electronics store = wholehearted service” in the young employees who will lead the next generation and encourage a shift in their mindset. Leveraging our core strengths of overwhelming brand recognition in the Kansai region, our solid membership base, and our proprietary infrastructure, we will transform the “point” of contact represented by the sale of tangible products, namely home appliances, into a “line” of connection that resolves customers’ everyday problems. This will turn our customers into enthusiastic “core fans” and maximize their lifetime value (LTV).

The dramatic expansion of our renovation business will serve as a pillar of our next-generation growth and drive our sustainable growth. Our renovation business has, until now, centered on “packaged renovations” for repeat orders following the purchase of home appliances. However, we plan to strengthen our collaboration with Joshin Reform Kinki to expand into “tailored renovations.”
      We will broadly expand our services, centered on renovations of kitchens, bathrooms, and other water-related areas that are highly compatible with our core strength in home appliances, to include interior renovations, exterior painting, interior window replacement, and barrierfree modifications and other services addressing nursing care needs. By also expanding sales via our proprietary e-commerce site, we will ensure that our renovation business achieves a revenue scale of ¥20.0 billion in FY2028.