The convenience store industry faces an increasingly challenging business environment defined by fiercer competition transcending traditional industry lines, and diversifying customer needs amid changes in Japan's social structure prompted by its aging population and falling birthrate. Like all major convenience store operators, Circle K Sunkus faces issues such as weak existing store sales and delays in opening new stores. Against this backdrop, from fiscal 2008, Circle K Sunkus has decided to shift to a management strategy premised on an "intensive focus on quality." The Company has also formulated a new management vision based on the two themes of "Becoming a Truly Exciting (WAKU WAKU) Enterprise" and "Raising Quality." Circle K Sunkus' management targets are to increase average daily sales per store to ￥500,000 or more on an all-store basis and to generate operating income of 3% or more of total sales.
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Five-Year Summary of Management Targets :Investors' Guide
"Average Daily Sales at All Stores"
"Ratio of Operating Income to Total Store Sales"
Circle K Sunkus will move forward on the following three fronts to realize its new management vision:
To make progress on these three fronts, the Company will boldly implement various reforms and improvements based on the following key management strategies over the medium term. By strengthening its sales capabilities, we aim to transform Circle K and Sunkus into powerful convenience store chains.
Realize "steady, sustainable growth" through management practices focused on cash flows and return on equity (ROE) to ensure returns commensurate with investments and low-cost operations
lncrease the overall quality (average daily sales per store) of both convenience store chains by developing stores based on a store opening strategy specific to each region
Establish relationships built on trust between Head Office and franchised stores by offering stronger support for franchised stores by investing more in revitalizing stores, and recruiting and training store staff
Develop products based on customer needs and research product lineups tailored to location that are unprecedented at either Circle K or Sunkus by utilizing data mining techniques
Step up efforts to establish an internal control system and corporate governance structure
Explore the possibilities of revitalizing new stores by selecting a range of best practices from new-concept stores and other new formats and applying them to convenience stores
Financial Highlights (Three-Year Summary and Outlook)
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