In the Fashion Business, the basic strategy of the Medium-Term Management Plan is to “conversion/redesign the current business model” by formulating priority measures for each area, which includes stores, products, and DX. First, as measures for our stores, we will improve sales floor efficiency and strengthen store openings in areas where ORIHICA stores have not yet opened. We will also relocate AOKI stores to places such as shopping centers and GMSs that are more efficient for attracting customers. Next, our product-related measures will focus on entering the wellness and sportswear markets while stepping up collaboration with partners, aiming to expand our sales mix for women’s products and casual products, while also developing new items such as Business x Sports. Finally, our DX measures will see us working to improve operational efficiency through means that include utilizing AI technologies and RFID, and strengthening our e-commerce business.
 

Our focus on “reviewing our existing business model and establishing a foothold for our next growth initiatives” over the last two years has brought to light the business challenges we face. In FY2024, we will speed up efforts to reform and grow by using selection and concentration to become “LIFE&WORK STYLE AOKI and ORIHICA.”

For this business, we will steadily implement the measures described in our Medium-Term Management Plan to reduce store opening costs, improve investment efficiency, and close unprofitable stores. On top of that, we will respond to price hikes and labor shortages in recent years by making productivity improvements through DX and other measures to make our human capital more efficient. We will target different businesses with different initiatives. For KAIKATSU CLUB, we will develop a new station-front café model and open cafés in front of major stations in metropolitan areas, while in the suburbs we will develop a shopping mall-style model aimed at attracting a wider range of customers. We are also considering café openings overseas.
 

For the COTE D’AZUR, to accommodate changing usage patterns with respect to karaoke places, we will streamline store operations by optimizing room sizes and improving interior design and amenities so as not to set limits on the type of customer and their reasons for dropping by. We will also differentiate the business by reviewing our COTE D’AZUR concept and strengthening product development. Our focus for FiT24, meanwhile, will be on gaining support from a wider range of customers and differentiating it within the industry. This will involve developing a store model whereby each location has different training areas and machines for customers with different attributes, from beginners to more advanced users, encouraging customers to establish a gym-going habit.

In the Bridal Business, we sought to offer weddings that better fit market needs at the ANNIVERSAIRE OMOTESANDO, which reopened in September 2023. At ANNIVERSAIRE MINATO MIRAI YOKOHAMA, we renovated the banquet room and entrance hall in preparation for improving occupancy rates in September 2024. At our other eight existing locations, we will also improve management efficiency by increasing market share and sales through appropriate investments tailored to the characteristics of each area and location, and by further standardizing operations. In 2023, we launched the Project for Moving Weddings as a collaborative effort among all departments and locations. We will continue striving to provide truly great weddings to our customers. At the same time, we will make the most of ANNIVERSAIRE’s high profile and well-located facilities to devise a new brand business. We will collaborate with top-shelf brands, strengthen MICE promotions such as corporate meetings, exhibitions, and events, and develop a business utilizing our accumulated bridal know-how and grow it into a new revenue source.