PARCO CO., LTD.
April 6, 2017
The PARCO Group today announced its Medium-term Business Plan for FY2017-21.
1. Business environment
(1) Successes and issues regarding the previous Medium-term Business Plan (FY2014-16)
The previous Medium-term business plan was positioned as a period for the execution of our growth strategy, and in the Stores Business we managed to build a stable foundation for store operation, begin the implementation of our plan to reconstruct Shibuya PARCO as a driver for further growth, and open new stores (Fukuoka PARCO New Building and Main Building Extension, Nagoya PARCO midi, Sendai PARCO2). For Development Projects, we engaged in advancing our growth strategy by developing ZERO GATE businesses in areas around existing stores (Nagoya, Sapporo, Hiroshima 2). However, we made the decision to close certain stores (Chiba PARCO, Otsu PARCO) to improve profitability, and there is room for improvement regarding efforts to increase profitability through further store openings, and fostering growth in overseas and other new business.
(2) Potential future changes in environment and business issues
We expect the consumer environment around the PARCO Group to be affected by factors such as the rapid evolution of technology, diversifying lifestyles, population aging and decrease, heightened competition in the retail and property development spaces driven by population inflow into urban areas, and an increase in inbound demand in the approach to the Tokyo Olympic and Paralympic Games.
Based on these predictions, we feel it is crucial to respond to the needs of maturing cities, which will exceed the current value provided primarily by the Stores Business, and recognize the necessity of advancing the process of business choice and focus to accelerate innovation of our business portfolio.
2. The Medium-term Business Plan for FY2017-2021
(1) Responding to expected changes in the business environment
In response to the expected changes mentioned above, the PARCO Group has adopted the concept that ‘business choice and focus = wider value provided by PARCO Group businesses in urban areas’, and is engaging in widening the core value provided by PARCO to meet diversifying consumer needs by advancing a scrap and build policy to increase the advantages of our Urban Stores, and expanding the variety of schemes and business categories in development to respond to further development needs and secure reliable profits.
(2) Outline of the Medium-term Business Plan based on PARCO’s Long-term Vision andthree business strategies
Under the PARCO Group’s Long-term Vision established in 2014, we strive to be designers of unique offerings for 24/7 urban life and creative drivers of urban evolution to achieve our goal of being a business group that prospers in urban markets. The Medium-term Business Plan for FY2017-21 was formulated based on the three strategies for achieving this vision - cultivation of major urban areas, expansion of core targets, and innovative use of ICT*.
*Information and Communication Technology - technology and services in various fields relating to the processing and sharing of information.
The details are as follows:
FY2017-21 Medium-term Business Plan (Smart phone)