Print PDF39 Community-focused stores around Japan
Operating income ¥0.1 billion (Y-on-Y -27.9%)
Against the backdrop of a halt in the decline of real-estate prices in urban centers and an extension of low interest rate policies and housing loan tax reductions, demand for housing is increasing and housing starts rose year-on-year 1.7%. This is the second straight year of positive movement, as the housing industry continues to recover. The single-family housing division is providing products to respond to diverse needs accompanying changes in lifestyle and family makeup, in addition to increasing the basic efficiency of housing. The rental housing division put on sale rental housing that can be efficiently constructed on small and unusually shaped building sites and featured improvements in design and interior quality. The condominium division announced high-rise projects and has incorporated construction systems that increase the asset value of condominiums.
Strategic business development
Despite the increase in consumer spending resulting from the modest economic recovery, per-customer spending in this segment fell due to the major impact of competition from other firms both within and outside of the industry as well as due to the requirement to display prices inclusive of consumption tax. However, the Company is developing a product strategy reflecting the characteristics of the localities of the centers and with a product line-up of approximately 50,000 items at a standard center (approx. 3,300 m2) and 70,000 to 100,000 items at a superstore (approx. 8,000 m2). Within this strategy, we are focusing on distinguishing the Company's home centers from other firms' by placing staff with specialized knowledge at "Renovation Halls" and "Interior Counters," and providing a full complement of facilities. In addition to meeting the needs of consumers, the Company is also aggressively stocking commercial goods to cater to local self-employed individuals. As a result, the number of customers that made purchases in FY2004 climbed 4.6% to 24.1 million.
Concentrating on home center renovation
In the future, we will work to strengthen competitiveness based on existing home center business plans, and to develop centers that offer customers a high degree of convenience. For this reason, the Company is resolving major issues such as reviewing home center in-store shopping layouts, arranging sales floors to display products used in various aspects of daily life, securing regular stock which cannot be found in other stores, enriching facilities with a high degree of specialization appropriate to the local environment, reducing the cost of materials, and raising profit margins.
