Strengthening marketing capabilities and reducing costs to enhance profitability in our Department Stores in Japan segment
In our consolidated financial results for the first half of FY2025, sales and profits fell. That was due to the big negative impact on our Department Stores in Japan segment from the pullback in inbound demand that had expanded in the previous fiscal year due to the weak yen. The business environment is changing dramatically such as in terms of rising geopolitical risks. Against this backdrop, our group will continue to promote growth investments (Domestic and Overseas Commercial Property Development segment and Finance segment, etc.) to realize a well-balanced portfolio capable of flexibly responding to those changes and human capital investments that enhance corporate value. Moreover, we will further focus our efforts on generating greater profits in our core Department Stores in Japan segment by working to both strengthen our marketing capabilities, such as in terms of our merchandise and customer policies, and reduce costs.
Revamping the Takashimaya app and linking up with our online store to centralize customer information in our Group
We are working to achieve seamlessness within our group for medium- to long-term growth. Based on our group’s comprehensive strategy of Machi-dukuri, we are elevating our competitive advantage by organically combining our three strengths: store location characteristics, excellent group companies and a broad customer base. This will lead to sustainable growth. As the first step toward that, we revamped the Takashimaya app to centralize customer information within the Group and linked it up to our online store in June of this year. Going forward, we will continue to set up a structure in steps to be able to seamlessly provide products and services at all points of contact that we have with our customers including domestic and overseas stores, department stores and specialty stores, and online and offline channels. Under this structure, we will aim to provide inspiring shopping experiences to our customers.
Our Vietnamese business, a growth driver for our group, is progressing steadily and we are also expanding our business domains in the Finance segment
In addition, our Vietnamese business, a growth driver for our group, is progressing steadily. We look to be close to acquiring land for the third phase of our expansion at Saigon Centre where Ho Chi Minh City Takashimaya is located. We will grow the facility to a scale comparable to Takashimaya Singapore Shopping Centre in the future. We will concentrate our collective strengths to vigorously promote development together with Hanoi Takashimaya Shopping Centre that we plan to open in the fall of 2027. Furthermore, we are looking to expand our business domains in the Finance segment by bringing in specialist human resources and know-how. We will also fully participate in the Investment and Lending business in addition to the Card business and Life Partner business. In this way, we will solidify our group’s customer base and expand profits in the Finance segment.
We will continue to produce group synergies while ensuring stable growth in each of businesses both in Japan and overseas to provide value to achieve fulfilling lifestyles for all our stakeholders.
We will continue to endeavor to meet the expectations of all our stakeholders in the future. We appreciate your continued support and patronage.
November 2025
Yoshio Murata, President