The Fashion Business, under the Medium-Term Management Plan “RISING 2026,” has adopted “conversion/redesign from the current business model” as its core strategy and is promoting three key initiatives, store initiatives, product initiatives, and digital transformation (DX) initiatives. 

In FY2024, growth in casual apparel, along with improvements in gross profit margin through restrained discounting and appropriate pricing, contributed to achieving the planned operating profit. In terms of store-related measures, renovation to improve sales floor efficiency was carried out, and the opening of ORIHICA stores (15 stores) was accelerated. On the product side, Quick Order Suits were rolled out at all stores; the Pajama Suit® series lineup was expanded; and the women’s brand “MeWORK” was promoted, resulting in an expanded item lineup and increased sales of women’s apparel. DX initiatives included promoting stable operations by leveraging RFID (electronic price tags) introduced at all ORIHICA stores in FY2023 to streamline store operations.

However, given the continuously shrinking market for suits, we recognize that it will be essential to engage in ongoing product development and service enhancements that provide value to customers. Looking to FY2025, we anticipate further growth in casual and women’s apparel, accelerating the evolution of our brands to realize “LIFE&WORK STYLE.” At the same time, ORIHICA will continue opening stores toward achieving a 200-store network, aiming to increase brand recognition and expand market share through new area development while AOKI will prepare to introduce RFID.

The Fashion Business will continue to address changes in the market and society and strive for sustainable growth by taking on the challenge of creating new value that meets the diverse lifestyles of our customers.

The Entertainment Business, under the Medium-Term Management Plan "RISING 2026," is advancing initiatives based on the core strategy of “evolution of store models and expansion of the customer base” through both company-wide measures and business-specific initiatives.

In FY2024, the plan was met in terms of operating profit thanks to higher sales driven by the growth of KAIKATSU CLUB and profit improvements achieved by closing unprofitable stores. This marked the fourth consecutive year of revenue and profit growth, with record-high earnings once again achieved. On the other hand, the Entertainment Bisiness continues to face a difficult market environment and new challenges. Specifically, late-night demand in the karaoke business continues to stagnate, requiring further adaptation to changing customer behavior patterns. In the fitness market, intensifying competition makes it essential to strengthen differentiation strategies.

Taking these issues into account, in FY2025 the Entertainment Business will continue to pursue initiatives based on the strategy of “evolution of store models and expansion of the customer base.” KAIKATSU CLUB will expand its urban stores (featuring fully private rooms with locks) while developing services, seating and room types, and food and beverage menus to meet diverse customer needs, along with promotional activities that leverage synergies across different business types. For COTE D’AZUR,karaoke aims to broaden its customer base through opening new-format stores and introducing room layouts and menus tailored to changing usage scenarios. At FiT24, we will introduce pricing plans designed to match different life stages as part of an effort to take a more finely tuned response to customer needs.

As the growth driver of the AOKI Group, the Entertainment Business is scheduled to receive around 70% of the ¥30 billion in store opening and capital investment planned under the Medium-Term Management Plan. Going forward, the Entertainment Business aims to achieve sustainable growth by generating solid investment returns, accurately capturing market changes, and continuing to take on the challenge of creating new value that meets diverse customer needs.

In FY2024, the Anniversaire and Bridal Business contributed to the AOKI Group revenue growth and achieved its operating profit targets. Specific initiatives included strengthening flagship venues and expanding the corporate banquet business. ANNIVERSAIRE OMOTESANDO, which underwent a full renovation in September 2023, has seen a significant increase in bookings for parties and exhibitions by luxury brand companies, demonstrating promising results. Likewise, ANNIVERSAIRE MINATO MIRAI YOKOHAMA made facility upgrades to strengthen its banquet offerings and bolstered its readiness to capture growing banquet demand. As a result of these initiatives, the non-wedding sales ratio rose from 2.6% in FY2023 to 5.2% in FY2024, progressing steadily toward our FY2026 target of 7%. At the same time, under the theme of “enhancing the customer experience and operational efficiency,” we launched the Project for Moving Weddings to further improve customer satisfaction while also carrying out measures such as providing head office staff support for stores and centralizing ingredient preparation. These efforts streamlined operations and reduced the burden on individual venues.

Looking ahead to FY2025 and beyond, the Anniversaire and Bridal Business will focus on addressing the long-term contraction of the bridal market while establishing the corporate banquet business as a new pillar of revenue. This will involve strengthening promotional activities and expanding corporate sales efforts to improve weekday facility utilization while further reinforcing organizational structures. For the eight venues outside our core stores, we will continue to improve management efficiency by making appropriate investments tailored to each area and store characteristics, along with standardizing operations. We will also keep developing products and services to meet the increasingly diverse needs of our customers.

Despite a challenging market environment, the Anniversaire and Bridal Business progressed its transformation in line with the Medium-Term Management Plan and achieved concrete results in FY2024. Guided by our philosophy of “Enriching people's lives,” we will continue to aim for sustainable growth by expanding into areas other than weddings while keeping the wedding business at the core.