Company Profile

Leadership & Governance
President Message

Proceeding with our Machi-dukuri Strategy to achieve our goal of being a next-generation department stores group

In fiscal 2017, our department stores in Japan saw a significant increase in revenue underpinned by favorable inbound demand and robust personal consumption. Our overseas stores fared well too; the Singapore store increased its revenue and profits, while the Vietnam store's sales and other operating revenue far surpassed expectations. The stores' performance contributed to strong consolidated results. Notably, sales and other operating revenue was up for the first time in two years, and operating income rose for the eighth consecutive year.

These excellent results are a testament to our efforts in pursuing the group-wide Machi-dukuri Strategy and strengthened our sales capability. Under the Machi-dukuri Strategy, we ensure that each of our department stores fulfills their anchor role by drawing people to the area, and work with our commercial developer, Toshin Development, to bring out the unique character of each store. Part of this strategy involves maximizing the appeal of our department stores' buildings. To this end, we fully refurbished the Takasaki Store to coincide with the redevelopment of the Takasaki Station's facade, and for our Senboku, Tachikawa, and Yonago stores, we tightened our cooperation with specialty stores and government bodies.

As regards our merchandise line-ups, we focused on independent merchandise curation, introducing Suit Closet, which caters to professional women, and Takashimaya Style Order Salon, which offers bespoke suits for men. We also introduced Robotics Studio, the first dedicated robotics shop to appear in a department store. This merchandising strategy boosted the stores' earning capacity, and as a result, all 17 of the stores in Japan are now making a profit.

For fiscal 2018, we are undertaking a range of initiatives with the goal of developing a group-wide management foundation that allows us to pursue the Machi-dukuri Strategy effectively.

Regarding the Machi-dukuri Strategy for 2018, having opened Nihombashi Store's East Wing in March this year, we are looking ahead to September, when the new wing will open as Nihombashi Takashimaya Shopping Center. We are also revamping Nihombashi Store's main building (the department store portion) aiming for an opening date in spring 2019. Overseas, in October this year, we plan to open Siam Takashimaya in Bangkok, Thailand.

Alongside these efforts, we are getting fully underway with our Group Reform Project—a project to radically reform our group's management structure to ensure better future growth. Under this project, we will pursue digitally led workstyle reforms and overhaul HR and finance workflows, which includes replacing inefficient systems. By boosting operational efficiency in this way, we will free up more profits which we will then reinvest into growth strategies.

In pursuing projects like Nihombashi Takashimaya Shopping Center and Siam Takashimaya, our group is working as one to accelerate our growth. We ask for your continued support and patronage.

May 2018
Shigeru Kimoto, President