Pan Pacific International Holdings Corporation

Pan Pacific International Holdings Corporation

Priority Strategy

Since its establishment, Don Quijote has been committed to the idea of kenshu sokko--a feudal term for staunchly defending a castle or military camp from the enemy and attacking quickly to prevent the enemy from gaining any advantage--and has, with the rest of the Group on board, maintained steady growth by demonstrating an ability to respond flexibly to changes regardless of lackluster business conditions and deflationary environments and by turning adversity into opportunity.
Going forward, the Group will emphasize three priority strategies designed to sustain steady growth into the future:

1)Boost Consolidated Sales and Income

 Don Quijote has achieved continuous growth in sales and income without any interruption whatsoever since the opening of its first store 29 years ago in 1989. Of the more-than-3,600 companies listed on domestic stock exchanges, Don Quijote's track record places it at the No. 2 spot. This remarkable accomplishment is surely a reflection of the loyalty accorded to us by customers and the dedication of staff in their day-to-day efforts, guided by our principle of "valuing the customer as our utmost priority." The PPIH Group will continue to strive for stable and ongoing growth by providing maximum customer satisfaction and demonstrating tireless determination in all its business pursuits.

Boost Consolidated Sales and Income

2)Improve Profitability Through Reinforced Private Brand Content

 "Jonetsu Kakaku," the Don Quijote private brand, was launched in October 2009 under a concept that accords relevance to customer feedback. The brand has been well-received, exemplified by a steadily climbing customer approval rating every year since the brand debuted. Currently, Don Quijote's original products (including private brand (PB) and original equipment manufacture (OEM)) account for 10.9%. Thanks to original store displays and the skills to bring together just the right selection of products, the operating income ratio has settled quite high--at 5.5%. However, there is still room for solid profit growth in the private brand. Going forward, we aim to take profitability to new heights by reinforcing private brand content.

Improve Profitability Through Reinforced Private Brand Content

3)Develop Solution Stores

 A "solution store" refers to what we call a facility renewal format in which we open a store in a multiuse commercial complex, a small to mid-sized shopping center, community shopping center (CSC), or neighborhood shopping center (NSC), relatively inexpensively because we do so at the request of the operator who hopes that the customerdrawing ability of PPIH Group stores will draw more shoppers to the destination. Solution stores are tenant-ready spaces measuring around 3,000m² and offer a fast and low-cost approach to store development. We will utilize this approach as a new growth strategy. Naturally, we aim to get solution stores up and running as quickly as possible for our own business reasons, but our presence in these facilities has additional benefits as we will be contributing to the revitalization of shopping centers and, by extension, invigorating regions and cities.

Develop Solution Stores