Message from Key Person in Retailing Business
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 (see Figure 1).
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 experiences (see Figure 2). In light of this social change, MARUI GROUP’s Retailing business is transitioning toward shopping centers and fixed-term rental contracts (see Figure 3).
Promoting the shift toward shopping centers and fixed-term rental contracts for our stores will enable us to exercise increased flexibility in adjusting the balance of product and service categories available at our stores. This increased flexibility will no doubt be a powerful asset in developing stores that win customer support and provide joy. Retailing was the starting point for the Group’s business, and even the credit card services that are now supporting our earnings are still steeped in the appeal of retailing. Going forward, I aim to further develop the Retailing business while generating synergies with other Group businesses.
Figure 1: 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
Figure 2: Sales Amounts by Store Type (1995 indexed to 100)
Source: Japan Council of Shopping Centers, Japan Chain Stores Association, and Japan Department Stores Association
Figure 3: MARUI GROUP’s Business Model Based on Social Changes