CEO Message

To shareholders and Investors


I would like to express my sincere gratitude to everyone involved in our group for their continued support. As we have just completed our 29th fiscal year (2022.03-2023.02), we would like to report on the overall situation.

Results for FY22 (2022.03-2023.02)

The performance of the Group in FY22 (2022.03-2023.02) is that in the first half of the fiscal year before the recovery from COVID-19, thorough cost reduction measures, such as responding to employee leave, continuing temporary suspension, and negotiating rent exemption, etc. In addition, we have been working to improve cash flow by actively conducting special sales of inventory to customers, and large-scale outlet sales for those living in Japan who have revised prices, product lineups, and store layouts.
In addition, since October 2022, when the number of tourists visiting Japan began to recover, we have responded to the increase in foreign tourists by reopening stores that had been closed until now and temporarily opening temporary stores.
As a result, despite the difficult business conditions in the current consolidated fiscal year, sales increased by 155% year-on-year, operating loss decreased by 64%, and operating loss decreased by 69%.
According to the announcement by the Japan National Tourism Organization (JNTO), the number of foreign visitors to Japan related to the retail business, which is the Group's main business, was 6.77 million, an approximately 30-fold increase from the previous fiscal year. In the most recent period from December to February, there were 4,342,000, a recovery of 69% compared to FY2019.

Main initiatives for FY23 (2023.03-2024.02)

The Group's top priority is to create new products and services in order to create connections with all people related to the Group through tourism-related businesses and provide excitement to people.
Regarding the environment surrounding the inbound industry, travel restrictions, etc. have been almost abolished for countries other than China, and it is now possible to travel overseas as freely as before the corona crisis. In addition, China, which virtually abandoned its zero-corona policy in December 2022 (although there was an explosive spread of infections after that), has seen a rapid convergence, and has now started overseas group trips to some countries. A rapid recovery is expected, with group tours to Japan expected to resume in FY2023.
Under these circumstances, the Group will reopen closed stores to respond to the rapidly recovering inbound demand, secure personnel accordingly, promote operational efficiency, open new stores to respond to new travel routes, We will restructure our sales network while implementing measures to respond to the post-corona era, such as expanding our product lineup to meet changing needs and reducing existing products. In addition, we will drastically review store layouts to avoid crowds, customer flow lines, and product policies, and flexibly respond to changes in consumer values, such as non-contact, non-face-to-face, and online, to expand our earnings base. We will continue to In addition, we will work to develop new sales channels such as expanding EC sales, including domestic and cross-border EC, and live commerce sales. In addition, to strengthen the management foundation, we will hire excellent human resources for sustainable business growth, review the personnel system in line with the growth of the Group, improve internal controls according to the business structure, and improve productivity by improving operational efficiency. We will strive to strengthen our organizational strength.

We look forward to your continued support and trust.

Chulmo Ku Chief Executive Officer

具 哲謨