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Retailing Business

As of March 31, 2016

Omni-Channel Retailing

Specialty Stores

Although the Retailing business is tasked with maintaining a standard level of quality in its shopping centers, directly managed specialty stores, which mainly handle co-creation private brand products, remain a unique characteristic of Marui stores. By selecting product categories in which the Company is strong and concentrating efforts on these categories, we will optimize sales floor sizes and thereby boost profitability.

Co-Creation Private Brands—Products Developed Through Customer Participation

The origin of MARUI GROUP's co-creation product development can be found in its Rakuchin Kirei Pumps, which were launched in 2010. In creating these shoes, we held product development meetings together with customers who had expressed dissatisfaction with the comfort of their shoes. Approximately 1,000 customers participated in the 60 meetings held each year, at which they tried on shoes and helped us in an ongoing cycle of checks and revisions regarding shoe comfort and design. In addition, we expanded the number of sizes of these shoes from the prior seven sizes to cover sizes ranging from 19.5 cm to 27.0 cm (20.5 cm to 26.0 cm for some products), providing an option for customers who had previously been unable to purchase such shoes due to a lack of sizes. As a result, the Rakuchin Kirei series (including pumps, sandals, and boots) has proved to be a massive hit, selling an aggregate total of more than 3.2 million pairs as of October 31, 2016.

Sales of Women's Shoes: Co-Creation Private Brands

Online Shopping

The MARUI Internet shopping web channel serves as the backbone of the Company's growing e-commerce operations. These operations are developed using MARUI GROUP's unique business model, which integrates stores, credit cards, and the Internet and is an important asset to the Group. This integration allows for synchronized management of store and Internet inventories as well as shared accounts with the EPOS NET website for EPOS cardholders. In the future, MARUI GROUP will continue striving to deliver new value to customers by expanding initiatives such as its try-on stores, which unite Internet sales and physical stores.

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