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TOP MESSAGE

Increase of Sales through Strengthening of Existing Businesses

 In fiscal 2016, as in the previous year, the home appliance distribution industry as a whole has suffered the influence of the declining birthrate and the aging of society, population decrease and the development of the Internet society. Under such circumstances, Yamada Denki succeeded inimproving the profit ratio through strengthening and promoting the structural reform.

 I take charge of existing businesses and have been working on human resources development and increase of sales through strengthening of existing businesses. While promoting measures for increasing the number of visiting customers and the average sale per customer, we started a concierge service at Concept LABI TOKYO located at Yaesu, Tokyo, in 2016. This new service is highly evaluated by customers and has also increased motivation of employees.

Measures for Increasing Sales through Strengthening of Existing Businesses

 In the fi eld of existing businesses, which I take charge of, six priority goals are set up.

 The first is the improvement of customer service and inventory. We are endeavoring to optimize and maximize staff assignment and quality by employing planned work shifts and flexibly responding to customers' needs to ensure that they can enjoy shopping confi dently and comfortably. Additionally, the headquarters and the center lead thorough inventory management to secure a lineup of products.

 The second is profit management. Managing profi ts for achieving targeted gross revenue, not just selling goods at low prices, is important. I will place stress on this, together with employee training.

 The third is the promotion of quantitative sales by area. Respective stores in the Yamada Denki Group should not deal with the same products uniformly but should flexibly devise an original lineup of products depending on the season, area, and the attributes of visiting customers. Even as the company size expands, respective stores are required to ascertain customer needs and share information in order to make meticulous responses.

 The fourth is the increase of profits of services businesses through enhancing sales promotion activities. At present, the Yamada Denki Group offers various services such as IoT business and the sale of houses. We will develop better sales promotion means in accordance with individual customers' needs by properly and effi ciently utilizing information obtained from customers.

 Measures for Human Resources Development

 The remaining two goals relate to human resources development.

 The fifth is the revitalization of human resources through education. As the percentage of part-timers is increasing, we will strengthen education and management of personnel. For employees who cannot move due to family circumstances, etc., we will introduce an area limited employment system, thereby creating working conditions under which such employees can also continue working with peace of mind.

 The sixth is the enhancement of CS and personal development. Yamada Denki sells not only home appliances but also houses including everything therein and can provide customers with proposals covering the entirety of their daily living needs. Accordingly, we encourage employees to positively obtain external qualifi cations, such as those for a certified electric home appliance advisor and a certified smart master. Such efforts will lead to upskilling and confidence development of employees and will also contribute to increasing customers' trust and satisfaction.

All employees including officers will steadily make efforts for these six priority goals and further endeavor to create profits through continuing the structural reform, aiming to be a company constantly contributing to all stakeholders of the Yamada Denki Group in order to create new social value.