Capital Expenditure
The AEON Group (AEON CO., LTD. and its consolidated subsidiaries) has been consolidating and closing its retail outlets in response to changes in the environment around them based on a proactive management strategy.
In fiscal 2023, the Group made capital expenditures of ¥408,901 million, mainly in the GMS Business and the Shopping Center Development Business.
- In the GMS Business, the Group opened 7 and closed 9 stores, while renovating existing stores to suit the characteristics of each commercial sphere. Capital expenditures in the business totaled ¥75,957 million.
- In the Supermarket Business and Discount Store Business, the Group opened 42 and closed 32 supermarket stores, and opened 6 and closed 24 discount stores while strengthening profitability in each area by continuously opening new stores and closing unprofitable stores. The Group also continued aggressively to open “My Basket,” small-sized supermarket stores specialized for urban areas, reaching a total of 1,119 stores at the end of fiscal 2023. Capital expenditures in the Supermarket Business totaled ¥66,063 million, and in the Discount Store Business totaled ¥5,274 million.
- In the Health & Wellness Business, WELCIA HOLDINGS CO., LTD. (Welcia) and its subsidiaries opened 102 and closed 40 stores. Welcia actively worked to expand the area in which it has stores and strengthen its dominance. Capital expenditures in the business totaled ¥23,172 million.
- In the Financial Services Business, companies such as AEON Financial Service Co., Ltd., and AEON BANK, LTD. continued to invest to enhance customers’ convenience and solidify the business foundation. Capital expenditures in the business totaled ¥49,562 million.
- In the Shopping Center Development Business, AEON Mall Co., Ltd. and its subsidiaries opened 4 and refurbished 13 shopping centers in Japan, and opened 1 overseas. Capital expenditures in the business totaled ¥62,098 million in Japan and ¥54,648 million overseas.
- In the Services and Specialty Store Business, AEON Fantasy Co., Ltd. opened new outlets, renovated existing outlets, and invested in the replacement of amusement machines. Capital expenditures in the business totaled ¥25,995 million.
- In the International Business, the Group opened 1 GMS stores in Malaysia and 14 supermarkets (4 in China, 2 in Thailand, 6 in Vietnam, 1 in Cambodia, and 1 in Indonesia). Capital expenditures in the business totaled ¥23,767 million.
- In the Other Business, capital expenditures totaled ¥16,082 million to enforce mainly digital business.
- Regarding the pure holding company and product supply companies, capital investments totaled ¥6,278 million.
- The required funds are based on cash on hand and borrowings.
- An impairment loss of ¥45,848 million related to store equipment and others was recorded. In addition, a loss on retirement of non-current assets of ¥3,716 million and a store closure loss of ¥3,795 million was recorded because the Group has been actively closing stores which are losing competitiveness, and unprofitable businesses. Provision for loss on store closings of ¥11,150 million was also recorded in fiscal 2023 for stores that the Group decided to close.
The capital expenditure shown above are on a payment basis and include intangible fixed assets, long-term prepaid expenses, and guarantee deposits.