Pan Pacific International Holdings Corporation

Pan Pacific International Holdings Corporation

Priority Strategy

Vision 2020

All items are achieved one year before 2020!

Pan Pacific International Holdings (PPIH) set the medium to long term goals called "Vision 2020" which will be achieved by 2020, the year Olympic and Paralympic games are held in Tokyo.
Vision 2020 has three goals; 1 trillion yen of sales, 500 stores and 15% of ROE.
All employees at PPIH work together as one based on the management strategies to achieve these goals by executing the corporate principal of "Valuing the customer as our utmost priority".
PPIH contributes to the society by providing satisfactory shopping experience to customers.
It also aims to welcome more customers at its stores and achieve continuous profitability improvement.

Vision 2020 (Formulated in 2015)

Sales:1 trillion yen

Store count:500

ROE:15%

Priority Strategy

PPIH is building the strongest business model in the retailing sector by being the unique discount store operator.
It aims to create and enhance corporate value by implementing several measures as follows.
・Executing "one-and-only" strategy with entertaining type of retail store "Don Quijote".
・Expanding customer base with family-oriented "MEGA Don Quijote" and "New MEGA Don Quijote".
・Developing private brand items.
・Opening "Solution Stores" in shopping complexes at low cost.

1)Boosting Sales and Income

PPIH has achieved continuous growth in sales and income without any interruption whatsoever since the opening of its first store 30 years ago in 1989. Of the more-than-3,600 companies listed on domestic stock exchanges, PPIH'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)Executing one and only strategy with entertaining Don Quijote stores

Don Quijote

Don Quijote

It is the general discount stores with three concepts "Convenience+Discount+Amusement".
It is core business of PPIH. About 40,000 to 60,000 items are carried, including food, daily goods, sundries, apparel, home appliances, branded goods and variety goods.

3)Expanding customer base with family-oriented "MEGA Don Quijote" and "New MEGA Don Quijote".

MEGA Don Quijote

MEGA Don Quijote

It is very first "For-families general discount store" in Japan with concepts of "Wide assortment" and "Surprising discount price". Average floor size is 9,000m² with the number of items is 60,000 to 100,000 items, welcoming customers with all generations.

New MEGA Don Quijote

New MEGA Don Quijote

It is smaller than MEGA Don Quijote stores with average floor size is 4,000m² with 40,000 to 60,000 items.
It focuses more on daily consumables and processed food than fresh food. It has higher profitability and efficiency than MEGA format stores.

Don Quijote UNY/ MEGA Don Quijote UNY

Don Quijote UNY/ MEGA Don Quijote UNY

UNY brand stores (Apita, Piago) are converted to these formats and attracting all-generation customers. These are mixed stores with Don Quijote and UNY.
Average size for Don Quijote UNY is 4,000 to 5,000m², MEGA Don Quijote UNY is 5,000 to 13,000m².
The number of items carried is ranging from 70,000 to 100,000.

4)Boosting OP margin with private brand items

"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 manufacturer (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.

"Jonetsu Kakaku" brand is renewed in February 2016. There are three brand lineups, Competitive price "Jonetsu Kakaku", value-added "Jonetsu Kakaku +(Plus)", and exclusive quality "Jonetsu Kakaku PREMIUM". These brands are responding diversifying customer needs and excavating potential wants.

Jonetsu Kakaku
It offers surprising discount price.

Jonetsu Kakaku logo

Jonetsu Kakaku +PLUS
It is one notch above Jonetsu Kakaku, offering more convenient and happiness.

Jonetsu Kakaku +PLUSlogo

Jonetsu Kakaku +PREMIUM
It is value-added, the highest-class in Jonetsu Kakaku brand in terms of price, quality, function and design.

Jonetsu Kakaku +PREMIUM

5)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