Management Policy

Business Objective of the Group

Aiming to become a corporate group indispensable to the health and beauty fields
and become Asia’s No. 1 health and beauty company

Group sales of 1.5 trillion yen and operating profit
margin of 7.0% by the year ending March 2026

The Group aims to achieve group sales of 1.5 trillion yen and an operating profit margin of 7.0% by the fiscal year ending March 2026, in order to become Asia's No.1 drugstore and establish a leading position in the field of health and beauty.
The market size of drugstores in Japan has exceeded 8 trillion yen, and is expected to reach 15 trillion yen in the future by gaining market share from the dispensing, convenience store, cosmetics, and e-commerce markets. In such a market environment, the Group aims to capture a 10% share of the market.

Positioning for FY2022
Provide social value

We will provide social value by considering the health of our customers, local communities, employees, business partners, and ultimately the earth.

Integration and deepening of both groups

To further deepen the integration of the two groups and further expand synergies by promoting initiatives in four key strategies.

Key Strategies(FY2022)
Japan Strategies
Provision of values that correspond to the life stages of customers

Pursuit of convenience
–deeper ties with customers

Pursuit of uniqueness
–renewal of experience and service provisions

Pursuit of specialization
–evolution of total care

Global Strategy
Further increase in presence in Asian markets

Further expansion of global business

Japan Strategy:
Provision of values that correspond to the life stages of customers
(1) Pursuit of convenience
— deeper ties with customers

As our customers’ values diversify, and their lifestyles continue to change, our Group feels we need to accurately grasp their changing needs by deepening our connections with them, as something closest to them. This is why we are pursuing convenience by measures such as a store network of more than 3,300 branches nationwide and creating a system that delivers to customers using digital technology, and providing a range of shopping styles. The goal of these is to become a company that is a familiar part of our customers’ lives.

(2) Pursuit of uniqueness
— renewal of experience and service provisions

In this harsh competitive environment, our Group will draw on the data accumulated from more than 100 million contacts with customers and our marketing analysis capacity to pursue uniqueness through things like the development of attractive products and services based on our customers’ values, or rolling out an advertising distribution business. This is designed to get us to be chosen by customers, to get their daily life to be more filled with joy.

(3) Pursuit of specialization
— evolution of total care

As the population ages, Japan is aiming to achieve a society where people remain healthy into old age. So our Group believes that by providing high quality services adapted to the life stages of our various customers, we will be expected to provide greater amounts of safety and joy by our local communities. For that reason, in addition to drawing on our company’s strengths to promote self-medication and expand our prescription business, we will pursue specialization in the three axes of beauty care for both mind and body, health and beauty, and wellness. By doing so, we can support community comprehensive care systems so that all people can remain beautiful, healthy, and enjoy spiritually rich lifestyles for many years.

Overseas strategies:
Further increase in presence in Asian markets
(4) Further expansion of global business

In order to open up new nations to move into, especially in Asia, open more stores overseas, and expand our cross-border e-commerce business, the Group is actively working on strengthening approaches using overseas social media and gaining global members, developing personnel who can play roles overseas and products supported overseas. This will allow us to aim to expand the scale of our business in the Asian region, where awareness of health and beauty are increasing, and improve our presence there.