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Management Policy
Business Objective of the Group
Aiming to become Asia’s No.1 drugstore and establish a leading position
in the health and beauty fields
Group sales of 1.5 trillion yen, operating profit
margin of 7.0% and ROE of 10% or more
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 health and beauty fields. We have also set a new goal of achieving an ROE (Return on Equity) of at least 10%.
The market size of drugstores in Japan continues to grow, and is expected to reach 15 trillion yen in the future by gaining market share from dispensing, convenience store, cosmetics, and e-commerce markets. In such a market environment, the Group aims to capture a 10% share of the market.
Even in this harsh business environment, with rising prices and wage revisions, we shall prioritize investment in human capital and key strategies in order to improve our corporate and brand values, with an emphasis on profitability.
Together with all stakeholders, including not only our company but also our business partners and employees, we will provide social value to the environment and social life.
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
Further increase in presence in Asian markets
Further expansion of global business
Provision of values that correspond to the life stages of customers
— deeper ties with customers
The Group believes that in our society, where customer values are becoming increasingly diverse and lifestyles are in the process of changing, in order to become the most familiar presence in customers’ lives, it is necessary for us to have deeper ties with those customers and accurately grasp their changing needs. For that reason, we will continue to pursue convenience in multiple forms, including further expansion of the systems that we bring to customers through our stores and the provision of varied shopping styles through new digital services, aiming to become a corporation that is more closely in step with our customers.
— renewal of experience and service provisions
By leveraging data accumulated from more than 140 million customer contact points and our marketing analysis capability, pursuing uniqueness that includes attractive products and services rich in excitement and fun, the development of store models and the expansion of our advertising delivery business, and providing the kind of brand experience that only we can offer, the Group will endeavor to be chosen by our customers and make their daily lives more full of joy.
— evolution of total care
In Japan, which seeks to realize a healthy, long-living society given its progressively declining birthrate and graying population, we in the Group believe that we are being called upon to provide communities with greater peace of mind and joy by offering high-quality services that correspond to the life stages of various customers. For that reason, we capitalize on our strengths and digital technology to promote specialization with a focus on the three areas of health, beauty care, and wellness, which includes both mental and physical beauty care, in addition to the promotion of self-care and the expansion of our drug dispensing business. In doing so, we will endeavor to prop up the Community Comprehensive Care system and see to it that all people can live lives in which they are beautiful, healthy, and spiritually rich for all days.
Further increase in presence in Asian markets
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In order to facilitate the cultivation of new markets of entry and the development of stores overseas, predominantly in Asia, as well as gaining a further slice of inbound tourism, we in the Group will aggressively tackle the reinforcement of our approach based on the utilization of overseas social media and the acquisition of global members, the development of human resources who play active roles globally and products that are popular overseas, and will utilize management resources in various countries efficiently and to the fullest extent. In doing so, we will aim to expand our business scale and enhance our presence in Asia, where health and beauty awareness is on the rise.