1
For net sales, our General Merchandise Store business driven by the strong performance in the foodstuffs sector recorded its first year-on-year profit in four years. However, these gains were offset by a decline in sales for other retail operations such as the Super Center and Home Center businesses, as a result of factors that included changes in the competitive environment and unseasonable weather.
As a result, overall like-for-like sales were 99.6% compared to the previous fiscal year. |
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2
Total revenues increased to 210,348 million yen (a YoY increase of 5.1%).
Operating income was 826 million yen (a YoY increase of 174 million yen), and ordinary income was 855 million yen. |
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| ■ GMS Business |
For our GMS (General Merchandise Store) business this fiscal year, we continued to implement a range of strategies to strengthen sales performance at each store, through measures such as upgrading and expanding our education and training programs and promoting the use of IT, while also increasing the appeal of individual stores.
Our foodstuffs sector registered a 4.7% like-for-like increase as compared to the previous fiscal year due to the strengthening of our Kayo-Ichi (Tuesday sales) campaign, active expansion of the range of products that are locally produced and consumed, and coordination for the simultaneous launch of local specialty products by all our stores in the region. For the home and leisure products sector, solid like-for-like sales of 99.4% were registered compared to the previous fiscal year due to factors that included the favorable sales of consumables in line with the strengthening of the foodstuffs Kayo-Ichi campaign and expanded sales achieved by ensuring a steady supply of hit products such as video games. However, the influence of unseasonable weather conditions (such as high temperatures in early spring, fluctuating weather conditions throughout summer, and the warmest winter on record) meant that in the clothing sector like-for-like sales of only 95.2% compared to the previous year were achieved.
As for new store openings, in April 2006, the AEON Fukuoka Ito Shopping Center was established with the JUSCO Fukuoka Ito Store (Nishi-ku, Fukuoka) at its core. Subsequently, the JUSCO Yahata Higashi Store (Yahata Higashi-ku, Kitakyushu) was opened in November of the same year. At our existing stores, in response to changes in both customer needs and the general operating environment, at both the JUSCO Wakamatsu and Saga Yamato stores, the floor space of our own retail stores has been renovated and expanded to introduce new tenants.
Taking into account all of the above, sales for the GMS business were 159,589 million yen (a YoY increase of 7.4%), for the like-for-like result of a 0.4% increase compared to the previous fiscal year. |
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| ■ Super Center and Home Center Business |
In the Home Center sector, strategies were implemented such as holding meetings for store managers in the same region, continually promoting information sharing to deal with store issues, and disseminating best practices. In addition, we continued to maximize management efficiency by improvements in the accuracy of replenishment order, through the increased utilization of IT systems, implementation of timely inter-store inventory stock control and distribution, and renovations and refurbishment activities in response to changes in the situations of our competitors. As one other part of our ongoing streamlining of retail operations, our Hita and Ajimu stores were closed last year in March and September, respectively.
For our Super Center sector, we continued to promote locally based operations through the ongoing introduction of locally produced products. Based on the results of our Saga store in the first year of its operations, renovations were made to optimize floor space according to product category so as to achieve retail spaces best able to meet the needs of the local community.
Of particular note for our new store openings this fiscal year was the opening of the AEON Super Center Shima store (Itoshima-gun, Fukuoka) in December 2006.
Sales for the Super Center and Home Center businesses were 38,960 million yen (a YoY decrease of 0.3%), for a like-for-like decrease of 3.2% compared to the previous fiscal year. These results were largely influenced by the unseasonable weather conditions throughout the year that impacted seasonal products such as gardening supplies and air-conditioners. Although this resulted in sluggish like-for-like sales figures compared to the previous year, through the increased efficiency of inventory control and reductions in operating losses, we were able to increase the YoY profit margin by 0.3%. |
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