Due to diversification of customer needs and increased competition across industries and business formats, the retail business environment has seen changes on a daily basis. In order to adjust to those changes and achieve further business growth towards 2020, we have formulated the Aeon Group Medium-term Management Plan (FY 2014 – 2016), under which we have been working together to promote Group-wide shift to the four growth areas; Asian markets, urban markets, senior-oriented markets, and digital markets, while also implementing product-oriented reforms.
Last fiscal year, we have implemented Group-wide structural reforms, namely converting The Daiei Inc. into a wholly owned subsidiary, and Welcia Holdings Co., Ltd. into a consolidated subsidiary, while establishing joint stockholding company United Super Markets Holdings Inc. In addition, we have streamlined functions at the headquarters to enhance flexibility and quickness in management execution.
Through implementing these reforms, Aeon has worked to build a new Group structure centered around the operating companies and thus enhance Group collective strength. Under this structure, Aeon further promotes full-scale management reforms that include such Group key initiatives as reforms of GMS Business and SM Business along with promotion of autonomous management by the operating companies and community-rooted management. At the same time, Aeon accelerates its efforts under the common Group strategies such as promoting the shifts to the four growth areas and product-oriented reforms to achieve further growth.
In the ASEAN region where rapid economic growth is taking place, Aeon opened its first shopping mall in Indonesia this year, after the launch in Vietnam and Cambodia last year. In order to cater to customer needs in the region, the Group companies work in close cooperation to roll out a multi-format business that capitalizes on the Group’s collective strength. In terms of product development, Aeon develops and offers customers in China and ASEAN countries regionally-oriented products under its private brand Topvalu. Just as in Japan, Aeon offers “safe and secure” products that incorporate customer voice in the respective countries.
Thanks to continuous support from customers, Aeon has grown to become a Group comprised of over 300 companies with its business operation expanding in total of 13 countries, and to target consolidated operating revenue of 8 trillion yen this year. With its unchanging Principle of “Pursuing peace, respecting humanity, and contributing to local communities, always with customers’ point of view as its core,” Aeon will continue its endeavor to achieve innovation in order to become Asia’s No.1 super regional retailer.