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Reform for Improving Store Efficiency

In order to improve customer convenience, Yamada Denki is carrying out scrap and build (S&B) and renovation of existing stores nationwide to change business forms. Renovation is not limited to repair work but is intended to revitalize stores into ones anticipating future needs and market changes. Yamada Denki’s stores are to be updated constantly so as to ensure a unique lineup and provision of original services.

Renovate Existing Stores in Response to Market Changes

 We renovate existing stores from the customers’ viewpoint to ensure that customers can enjoy shopping safely and conveniently, through such means as reviewing the lineup, expanding aisles, repairing and renewing store equipment, and making bathrooms barrier-free.

 We are actively renovating existing stores partly in order to respond to changes in the market environment and social needs due to the declining birth rate and the aging of society, population decrease and the development of the Internet society. Sensing such changes acutely, we are trying to make our stores more and more attractive by improving the lineup and devising displays of products by life scenes to emphasize the features of each product. In this context, we strategically implement S&B of stores that cannot sufficiently respond to market changes in their current forms.

Increase Earnings through Strategic Renovation

 Generally, store renovation is implemented uniformly and efficiently based on a predetermined format. However, as popular products differ by region, we employ a method wherein officers observe the site in advance and decide lineups and layout flexibly based on opinions and requests of store staff, thereby creating optimal sales floors in accordance with respective local markets.

 Timing of renovation directly affects sales and is very significant. We implement renovation strategically, while obtaining information on market trends and competitors’ moves as early as possible. Flexible and speedy responses are required, but know-how that we have accumulated over years enables us to carry out timely renovation at the fastest speed in the industry.

 Under such strategy, we have successfully increased sales and gross profit and significantly improved store efficiency.

New Stores Responding to Diverse Needs

 Yamada Denki positions store renovation and S&B as a significant strategy for securing market share, and the development of stores with various concepts is also promoted under the Medium-term Business Plan up to fiscal 2019. We aim to build a store network without peer in the world consisting of diverse types of stores from large suburban stores like Tecc Land, urban stores (general stores, large stores, category-based stores and concept-based stores), and outlet/reuse stores.

 We will endeavor to create stores nationwide that can satisfy not only customers but also employees working therein so that our stores can be sources to transmit information that always leads to new discoveries. Strengthening of Existing Businesses Strengthening of Existing Businesses Original Product Development Services Reform for Improving Store Efficiency Develop and Sell Original Home Appliances that are Environmentally-Friendly and are Easy to Handle Renovate Existing Stores to Respond to Market Changes Speedily at a Pace of 200 Stores a Year, the Top Level in the Industry Topics Structural Reform for Enhancing Corporate Value