Top Message

Top Message

President

Guided by our Group principle of "Everyday Fun and Fresh," we will fully leverage the Group's unique management resources to advance daily reforms to our business model. At the same time, we will move beyond the conventional boundaries of retailers as we grow into a social and lifestyle infrastructure provider that is indispensable to the daily lives of consumers.

In the convenience store business, along with the three "enhancements"--merchandise, features and services, and efficiency--laid out in the medium-term management plan, we are advancing a concerted Groupwide effort to convert Circle K and Sunkus brand stores into FamilyMart brand stores in order to build an even more competitive convenience store chain.

A little over a year after beginning these efforts, we had completed the brand conversion of 3,012 stores (as of November 30, 2017). These stores have performed strongly, with roughly 110% growth relative to pre-conversion sales. While making use of our nationwide network of approximately 18,000 stores, we followed up on the integration of ready-to-eat and other products, which was completed in February 2017, with the integration of distribution functions, which was completed in June, thereby making efforts to further draw out the synergies of the management integration.

In the general merchandise store business, we are working on the execution of three "reforms"--business type, store, and awareness. We have also made comprehensive efforts to improve the five "sources" of the retail business: products, 52 weeks of merchandising, product lineup, sales environment, and customer service. At the same time, we have endeavored to offer these "sources" to our customers while also working to reduce costs.

Based on the final contract concluded with Don Quijote Holdings Co., Ltd., in August 2017 in relation to our business and capital alliance, we completed the transfer of 40.0% of the total issued shares of stock in UNY CO., LTD., held by the Company to Don Quijote Holdings in November. Looking ahead, we plan to reopen a total of six Apita and Piago stores after completed renovation in February and March 2018, amassing the strengths and expertise of both companies to transform the business model of these stores with the aim of greatly increasing sales at remodeled stores. Furthermore, we will advance various collaborative initiatives, such as joint development of products and cooperative procurement, to improve the medium-to-long-term corporate value of both companies.

To succeed amid a fiercely competitive environment in the fourth quarter of the fiscal year ending February 28, 2018, and beyond, we will explore new opportunities for growth by concentrating Groupwide management resources to offer unique value. Furthermore, we are recording impairment losses for fixed assets in the convenience store and general merchandise store businesses on top of establishing a strong financial foundation in order to resolve future issues.

We have chosen not to revise the forecasts for full-year consolidated gross operating revenues and core operating income in the fiscal year ending February 28, 2018, from the respective forecasts of \1,242.0 billion and \66.5 billion, which were announced in October 2017. However, we did raise the forecast for profit attributable to owners of the parent to \33.0 billion to reflect gains on sales of idle assets in the general merchandise store business that were conducted during the third quarter.

We ask for the continued support of all our investors and shareholders going forward.

Representative Director and President
Kouji takayanagi