Kikkoman Corporation · TSE:2801
Kikkoman — The Maruetsu — Conference Presentation (June 2018)
12 slides from Kikkoman's conference presentation, Jun 7, 2018
Slide 1: Maruetsu: Its Business Activities
Maruetsu Its Business Activities Thursday June 7, 2018 Makoto Ueda The Maruetsu, Inc. Representative Director, President 1
Slide 2: Maruetsu Overview
Maruetsu Overview ● Founded: October 1945 ● # employees: Full-time4,322, PT 12,177 Total 16,409 （７３．３％ PT） ※as of Feb 2018 ● Operating income: ¥37.759B (group total)※as of Feb 2018 ● # stores：292 ※as of Feb 2018（Excludes 2 stores in China） Banner # stores Characteristics ●Where we are Maruetsu 216 S
Slide 3: Business Operation Philosophy
Business Operation philosophy ●Purpose of existence We contribute to healthy and bountiful food experiences through providing safe and delicious food products ●Business operation attitude We will always innovate and challenge ourselves, and remain a fair and trustworthy company ●Activitiy model We s
Slide 4: Purpose of Existence: centers that support our product supply
Purpose of Existence 4 centers that support our product supply 1. Small store DC (reg & cold temp) 2. Perishable process (meat, seafood) 3. Produce (7 locations) 4. Bakery, deli (satellite supply) Provide customers with safe and delicious food and peace of mind 4
Slide 5: Business Operation Attitude
Business Operation Attitude Our store locations are fertile market soil, but we recognize the following challenges ・The metropolitan Tokyo's soaring rent (land price) Tokyo 23-Ward ave. land price per tsubo (3.3 sqm):¥4.64K (=$1,240/sqf) (109.7％ increase from previous year) ※2017 average Source: Toc
Slide 6: Maruetsu Petit
Maruetsu Petit To increase market share in the metropolitan Tokyo area, Maruetsu Petit is a “Big-city mini supermarket” with store operations and HQ support that enable multiple store development Maruetsu Petit store front Regular Maruetsu store front 6
Slide 7: Maruetsu Petit Merchandizing
Maruetsu Petit Merchandizing ①Perishables sold ⇒meat, produce, fish focus on freshness & large assortment ②Processed food, GM offering ⇒use high gondola to achieve high SKUs, high density ③Freshly made deli items ⇒set up a kitchen or a simple fryer ④Avoid competing w/c-stores ⇒minimal value-add serv
Slide 8: Store Expansion Strategies (Maruetsu Petit)
Store Expansion Strategies (Maruetsu Petit) ・Areas where market size growth is expected Maruetsu Petit store expansion strategies As of FY2018 March ※Excl. Nishi Shinjuku 4 chome 100 70 stores stores ¥37B ¥50B ($350M) ($460M) With 2020 Tokyo Olympics, further improve global-minded customer services
Slide 9: Activity Model
Activity Model ●Shopper data analysis with T-Data T-card is a point-based reward card where shoppers can earn/spend points at participating outlets. Maruetsu revenue from T-member: 80+% Maruetsu shoppers with T-card: below 80% (T-member store visitors are approx. 3M/mo.) Since most shoppers are T-ca
Slide 10: T-Data Analysis Example (histogram)
T-Data Analysis Example (histogram) Unit: Y=age, X=% Bar chart: Store A, Line chart: Store B Male Female Store B Store B Over 60-yo: 40.0% Approx. 50km Store A Store A Over 60-yo: 6.0% Each store shows very different shopper base, age, and gender ⇒ Decentralized sales programs and individual store m
Slide 11: Future Operational Strategies
Future Operational Strategies １．New store expansion strategy Focused store expansion in the fertile metropolitan Tokyo area with 2020 Tokyo Olympics in sight. ２．Product strategy To meet competition from the likes of drugstores and E-commerce retailers, utilize the strength of a Brick-and-Mortar supe
Slide 12: Thank You
THANK YOU o\\ maruetsu