Company Profile

Fundamentally improving department store profitability
First half resulted in record highs for operating profit, ordinary profit, and net profit

The Takashimaya Group defines our vision for 2031 as being a familiar platform that helps achieve fulfilling lifestyles for all our stakeholders, including our customers, employees, shareholders, business partners, and local communities. Positioning this vision as our Grand Design, the Group has formulated a Medium-Term Management Plan aimed at achieving this vision.

During the first half of FY2024, the first year of this Medium-Term Management Plan, operating profit increased significantly thanks to strong consumption in Japan and growth in sales from inbound travelers. At the same time, structural reforms implemented during the COVID-19 pandemic helped us normalize low-cost management, which contributed to further reducing our SG&A to total operating revenue ratio. As a result, we achieved record highs for consolidated operating profit, ordinary profit, and net profit for the first six months.

Currently, we are also seeing gradual growth in personal consumption as economic sentiment in Japan remains strong. In light of this operating environment, Takashimaya Group conducted an upward revision to our operating profit target by 2.5 billion yen to 60.0 billion yen for FY2026, the final year of the Medium-Term Management Plan.

Takashimaya Group is also advancing ESG management, which we position as the foundation of our operations. We will contribute to resolving social issues through business activities by expanding TSUNAGU ACTION, sales activities designed to promote sustainable living, as an initiative to be undertaken by the entire Group.

Takashimaya Group views human resources as the key to providing “omotenashi”, the service and hospitality at the core of our value proposition. To this end, our human capital management focuses on initiatives that foster motivation and skills development among our human resources. In July 2024, the Takashimaya Group formulated a Basic Policy on Customer Harassment. Also, for the 2025 New Year’s Holiday, in addition to New Year’s Day we also designated January 2 as a store holiday. Through these and other initiatives, we are working to increase the attractiveness of Takashimaya as a place to work.

Through our Machi-dukuri Strategy, we are steadily advancing development projects overseas in Vietnam, which we position as a pillar of future growth. The large-scale, mixed-use development project currently underway in Hanoi includes both commercial and non-commercial properties. The Group has decided to open a shopping center with a department store as its feature property, which will represent the Group’s third overseas store after Singapore and Ho Chi Minh City. Also, the Group’s second rental/leasing for school business in Vietnam started operations in August.

In Japan, the Group is advancing the conversion to next-generation shopping centers as we seek to expand the Takashimaya fan base by diversifying motivations for store visits and offering spaces that resonate with customers. To this end, we are upgrading existing Takashimaya Group commercial facilities by adding innovative content, incorporating community functions that attract local residents, and serving a social function by complementing local infrastructure. Following up on the Kyoto Takashimaya Shopping Center opened last year, in 2024 we completed renovations at the Kashiwa Takashimaya Station Mall. We will continue to enhance our curated sales spaces, a strength of department stores, as also leveraging digital technology and business alliances to expand our customer base as we seek to fundamentally make the department stores more profitable and resistant to changes in our external environment.

Takashimaya Group will continue working to meet the expectations of our stakeholders, and we ask for your continued support and patronage.

November 2024
Yoshio Murata, President