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Reform for Improving Store Effi ciency

Refurbishment of Stores Progressing as Planned

 Full reform of approximately 650 directly operated stores is steadily progressing in line with the Medium-term Business Plan. Sales are favorable for TVs, backed by demand for 4K TVs and demand associated with the Olympic Games, and cooking appliances and other white goods that refl ect individual preferences are also selling well. We have succeeded in arranging floor layouts in response to such moves and have increased sales and operating profi t margins.

Plan to Expand Experience-based Stores in Front of Large Stations

 In November 2016, LABI LIFE SELECT TACHIKAWA, a new experience-based store, was opened. Thanks to its location just in front of Tachikawa Station, sales have been above our expectation despite the declining birthrate, the aging of society, and people's return to urban areas. The former LABI Senri, also located in front of a large station, was completely remodeled into a similar experiencebased store and was opened as LABI LIFE SELECT SENRI in March 2017.

 We will increase experience-based stores while scrutinizing and selecting appropriate locations.

Efforts to Improve Customer Satisfaction

 Since 2016, we have sequentially established Digital Support Stations to offer PC support services meticulously under a group-wide system. This service has contributed to increasing sales and operating profi t margins, improving the customer experience, and also enhancing customer satisfaction accordingly.

Consideration of New Store Modes

 We will seek means to more effectively utilize real stores and present various proposals therefor, such as the reorganization of sales modes and the development of a network of stores incorporating new concepts, in consideration of changes in the social structure, including the declining birthrate, the aging of society, and people's return to urban areas, as well as changes in customer needs and preferences. The ability to fl exibly and speedily respond to everchanging economic trends and social situations is one of our strengths and we will continue taking on challenges under the management philosophy "Creation and Challenge."