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Messages from Top Executives

Actively Promote Structural
Reform to Achieve Planned
Business Performance

ICHIMIYA Tadao

Representative Director, Vice Chairman and CEO

Significantly Improved Gross Profit Ratio

 In fiscal 2015, we endeavored to improve store efficiency as part of the structural reform, while establishing and implementing detailed sales strategies, and have significantly improved the gross profit ratio. We have promoted the development of “specialty store  retailer of private label apparel (SPA)” products, for which we ourselves carry out all procedures from marketing to planning and development, and the ratio of the sales thereof has increased, which also helped the improvement of business performance as a whole, together with our efforts to control selling, general and administrative expenses.

Promote Structural Reform

 We will continue and advance the structural reform which we have worked on as a group for the purpose of achieving the Medium-term Business Plan.

 The Medium-term Business Plan sets out, as a long-term vision, the achievement of an IoT company with the largest service network in Japan in order to realize sustainable growth of the Group and respond to expectations of stakeholders. We will endeavor to achieve the plan through proactively carrying out the following concrete measures for the structural reform: (i) environmental business to strengthen the outlet & reuse business in which the whole process from purchase to sale of recycled goods is completed within the Group; (ii) Yamada Net Mall Services to improve and strengthen functions of online malls and websites leading to the advancement of the IoT initiatives; (iii) Smart House Services to increase sales of houses by Yamada SxL Home Co., Ltd. and Yamada Wood House Co., Ltd.; (iv) renovation services to expand the number of customers in the B-to-B and B-to-C segments in collaboration with Housetec Inc.; (v) Daily Life Support Services to strengthen watch-over services, home appliances warranty services and loyalty point card services, etc. as measures responding to the population aging and the development of the Internet society; (vi) original product development services to promote the development of higher-margin home appliances and other products; (vii) reform for improving store efficiency to promote the development of stores with consideration for the balance between profits and costs; and (viii)personnel system reform to strengthen human resources development and build a system to manage working hours. We will carry out these reform measures simultaneously with the aim of achieving the business plan up to fiscal 2019.

Bridge the Gap between New Businesses and Existing Businesses

 I assumed the office of Vice Chairman and have been working on various activities as a leader of the structural reform. New businesses being promoted by Chairman YAMADA and existing businesses being promoted by President-Director KUWANO are both based on the infrastructure consisting of the nationwide store network and approximately 50 million members, which we have built up in response to the diverse needs of the society and the times. Standing on these business resources, we need to further develop and update our business foundation in order to create a system under which we can properly respond to future social needs. Additionally, it is my responsibility to integrate, synthesize and further increase the sophistication of these efforts in a cross-sectoral manner. Achieving the structural reform is an extremely significant task to bridge the gap between new businesses and existing businesses.

 As immediate challenges in achieving the Medium-term Business Plan, we have set up the abovementioned themes, but themes may increase while implementing measures and verifying the achievement under the new system. This is because the final goal of the structural reform is set for a period far beyond the time frame of the Medium-term Business Plan.

Implement Corporate Social Responsibility

 It is most important for us to ensure that our business operations yield results based on the strengths of diverse group companies, through offering products and expert service, and thus fulfill our corporate social responsibility for our stakeholders. I will responsibly carry out the Medium-term Business Plan and other publicized business plans as a member of the top management.