As of March 31, 2016
Business Model Transition
MARUI GROUP is transitioning away from its conventional department store business model, which utilized the traditional sale or return arrangement, to adopt a business model based around shopping centers and fixed-term rental contracts that makes use of real estate contracts. The aim of this model is to devote more of the Company's stores to sundries, restaurants, and other high-demand areas that support all lifestyles. This transition will take place over the five-year period spanning the fiscal years ending March 31, 2017–2021, and is anticipated to contribute to earnings improvements to the extent of ¥6.0 billion.
MARUI GROUP's Business Model Based on Social Changes
Total Fixed-Term Rental Contract Floor Space and Targets
Ratio of fixed-term rental contracts = Fixed-term rental contracted floor space ÷ Total floor space capable of being contracted as fixed-term rental
Sections not applicable for fixed-term rental contracts: Sections not applicable for fixed-term rental contracts based on requests of building owners, directly managed sales floors, event spaces, food sales floors, etc.
As Japanese society matures, the focus of individuals' values is changing from the accumulation of physical goods to the pursuit of more fulfilling lifestyles. The ensuing shift in consumption from goods to experiences is becoming all the more clear as IT advances, and this trend can be expected to continue into the future. Looking at trends in the amounts of sales by store type dating back to 1995, we will see that, as sales decline among store types using the traditional sale or return arrangement, performance has been strong for shopping centers. This is most likely due to the ability of these facilities to cater to needs for the consumption of experience.
Consumption Expenditures (1995 indexed to 100)
Source: Family Income and Expenditure Survey, Statistics Bureau, Ministry of Internal Affairs and Communications (two-or-more-person households in which head of household works, "food" excludes "eating out," "leisure" based on Company data
Sales Amounts by Store Type (1995 indexed to 100)
Source: Japan Council of Shopping Centers, Japan Chain Stores Association, and Japan Department Stores Association
- Relevant Links
- Investor Relations: Medium-Term Management Plan