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The company group aims to expand store network through new store openings and enhance the attractiveness and profitability of stores through strengthening food offerings with a focus on fresh food, as well as store renovations in the retail distribution business. Additionally, in the Retail AI business, the group strives to improve the value proposition to retail companies, food and consumer goods manufacturers, and vendors through the development of new products and solutions, as well as the enhancement of existing products.
1.New Store Openings and Store Renovations:
In the distribution and retail business, the Group's core business, opening new stores and renovating existing stores to improve customer attraction and profitability are important growth drivers.
The Group has developed its own trade area analysis software, Retail Map, which combines a wide range of in-house data (customer attributes, purchasing information, etc.) with general data (trade area information, map information, statistical information, etc.) to enable analysis. The data is used by the Group to consider store openings and closures, and to improve the performance of existing stores.
While the Super Center will continue to be our main format, we have multiple store formats with different store sizes and product mixes, enabling us to flexibly open stores in former locations of food supermarkets, electronics and furniture mass retailers, home centers, apparel stores, etc., where other companies have withdrawn, and to open dominant stores that reduce our own competition.
In addition to opening its own stores, the Company is also actively considering business expansion through restructuring and partnerships, and has achieved small store expansion through the October 23, 2023, acquisition of certain businesses from SATOCHO CO.,LTD.
The Group has strategically curbed the number of new store openings from FY2021 to FY2022, as it has invested resources in creating stores with enhanced "food" such as fresh and prepared foods through renovations of existing stores.
From FY2023 onward, new store openings are underway with an emphasis on "food," and we plan to continue to expand our store network, together with inorganic growth such as business acquisitions.
The company aims to expand its network in regions other than Kyushu, centering on Kyushu, where it has a network of stores, as the dominant location for new store openings.
In terms of formats, while focusing on our mainstay Super Centers, we will open roadside Mega Centers and smart stores in urban areas, and expand the opening of small stores (TRIAL GO, etc.) as satellite stores of Super Centers in order to capture and expand customer support in each region.
For existing stores, we will introduce IoT devices such as Skip Cart, improve operations by allocating man-hours reduced by mechanization and streamlining to higher value-added operations, and strengthen product lineups tailored to local characteristics, including fresh foods, to create attractive stores where local customers can conveniently and enjoyably shop. In FY2024, 30 stores were remodeled, and a certain level of sales improvement has been achieved. In addition, we expect to remodel about 30 stores each year for the next several years.
In addition to these new store openings and store remodeling, the Company aims to improve its ability to attract customers and profitability by strengthening the development of private brand products, continuously reviewing its product mix, setting appropriate selling prices, and thoroughly controlling costs, including selling, general and administrative expenses.
2.Human Resources Strategy:
The Group considers "human resources" to be the source of its competitive advantage in realizing sustainable, medium- and long-term improvements in corporate value, and considers the development of a work environment and education system in which diverse human resources can play an active role and work with a sense of fulfillment and security, and the training of next-generation managers to be important issues in its management strategy.
In order to realize our purpose, "Enrich every aspect of people's lives through all we do," it is important to respect diverse viewpoints and values. We have launched the Diversity and Inclusion Project to develop and promote a support system that enables diverse human resources, including women, non-Japanese, mid-career workers, senior employees, and employees with disabilities, to play an active role. In addition, to link the success of our diverse human resources to the growth of the company, it is essential to continuously promote the understanding and penetration of our management philosophy among all employees, and we will practice this as a top priority in our educational efforts.
TRIAL Company, Inc. is a retail business company which is main part of our group. The name "TRIAL" implies "TRIALs" for difficulties. It represents our will to continue to challenge the impossible for the future. The name "Company" shows "Companions" aside a meaning of corporation. To take on "TRIALs" for difficulties with our "Companions" is what's into the name of TRIAL Company. Based on the corporate culture that failure is an asset, we will implement and continuously improve our evaluation and compensation systems and next-generation management development programs to create a rewarding work environment where each employee can challenge himself/herself. We will continue to improve our evaluation and compensation systems and next-generation management development programs to create a rewarding work environment in which each employee can take on challenges. We have also positioned the strengthening of cooperation with other companies as an important management issue to eliminate inefficiencies in the distribution and retail industry, and have established a distribution DX development base in Miyawaka City, Fukuoka Prefecture, where manufacturers, wholesalers, and other retailers are working together to develop human resources for distribution DX. We will further strengthen our efforts in this area in the future.
We believe that the lifelong growth of each of our diverse employees will lead to the maximization of two values: the development and growth of our Group and the development and growth of society as a whole.
3.Utilization of Technology and Data:
Changes in the external environment, such as the fragmentation of customer preferences, diversification of purchasing behavior, and the increasing ratio of e-commerce (EC), have made the use of IT, AI, and other technologies an essential element for retailers that mainly operate brick-and-mortar stores. Since its establishment, the Group has consistently managed its business using IT and data, and has now separated its business segment as the "Retail AI Business" from the "Distribution and Retail Business," and is actively investing in the development of products and solutions that utilize technology. The Group not only uses these technologies in-house, but also provides them to manufacturers, wholesalers, and retailers outside the Group, and receives fees for the use of its services.
For the distribution and retail industry, the transformation of business models through the use of technology and data is extremely important, and we believe that the need for and willingness to invest in digital transformation (DX) will continue to increase. We believe that the need for and willingness to invest in digital transformation (DX) will continue to increase. We will not only utilize DX within the Group, but also build an industry-wide distribution ecosystem by seamlessly sharing data among manufacturers, wholesalers, logistics companies, and retailers, and by expanding our products and solutions to companies outside the Group. By sharing seamless solutions among logistics and retail companies, we hope to create a distribution ecosystem for the entire industry.