Message from the Chairman
Developing new stores to expand our market share and consistently generate profits despite a declining population
The home appliance/electronics the Group sells are essential items for ensuring that people have the basic necessities related to food, clothing, and shelter, so there will always be replacement demand.
However, we are concerned that demand in the home appliance/electronics market in Japan will wane as the country’s population continues to decline.
If we develop new stores to expand our market share more quickly than the population declines, we believe we can continue to grow and generate stable profits.
As of now, the Group has stores in 46 prefectures (all except Okinawa). Our reason for continuing to establish stores across the whole of Japan is based on a dominant strategy. Our ultimate goal is for everyone to have a K’s Denki within a 15-minute drive in any direction. This will keep our expense ratio under control as sales increase while the per-store cost of flyers and logistics declines. We aim to generate stable profits in this way.
We view shareholder returns as one of our most important management priorities, and are committed to dialogues with investors and shareholders and timely disclosures
We believe it is important to take care of 1. employees, 2. business partners, 3. customers, and 4. shareholders, in that order. However, this absolutely does not mean that we treat our customers and shareholders lightly. We cannot place importance on customers and provide them with truly friendly service unless we value our employees first. Rather than imposing sales quotas on our employees and forcing them to push the most profitable merchandise on customers, we maintain environments which allow them to enjoy working with a smile. This allows them to focus on providing customer-oriented service that keeps customers coming back to K’s Denki instead of other options. We then distribute the profits earned from these efforts to shareholders in addition to investing in new store development.
Shareholder returns are one of our most important management priorities, and we aim for stable dividends. We will continue to implement flexible capital policy to further improve capital efficiency and PBR in accordance with our shareholder return policy, and are committed to dialogues with investors and shareholders and timely disclosures.