New Year's Greetings for 2012 from the President
Happy New Year!
I would like to take this opportunity to thank all shareholders and other investors for their interest in Circle K Sunkus, and ask for their continued support in the coming year.
In 2011, Japan was affected by a massive earthquake of a magnitude experienced only once in a hundred years. In the convenience store industry, this earthquake had repercussions on stores and on the supply chain. On the bright side, however, this catastrophe also gave people reason to re-evaluate convenience stores for the infrastructure they provide society. It also brought an increase in footfall from middle-aged and elderly customers, as well as homemakers, who had previously not been frequent customers. Consequently, the roles consumers expect Circle K Sunkus to fulfill are continuing to evolve and change.
It was against this backdrop that we began introducing proposals for store layouts based on location type last year, with an eye to responding to the needs of our diversifying customers. We also accomplished a number of reforms to lay the groundwork for the future, including a re-examination of the way we rank the products we stock and the introduction of an automated ordering system for general merchandise. These initiatives sowed last year have now taken root, and in 2012 we will nurture them into powerful business pillars.
Starting in 2012, we will take our promotion and development of store layouts based on location type a step further, while transforming product offerings dramatically. Under the catch phrase of “convenience stores friendly to senior citizens,” the Circle K Sunkus Group will actively develop stores targeting specific demographics and locations. These stores will center around three pivotal store formats; namely, convenience stores emphasizing fast food, convenience stores that resemble small supermarkets and specialized mini convenience stores. As a part of this drive, Circle K Sunkus announced in November 2011 that it had formed a business alliance with JALUX Inc. JALUX’s considerable strengths in businesses associated with air travel and air terminals will enable the expansion of our convenience store chain to the specialized retail spaces inside airports. Circle K Sunkus is also planning to jointly develop and sell original JALUX merchandise.
In addition, we will further pursue synergies with the UNY Group this year. Having this general mass retailer as a parent company is one of our strengths. The promotion of merchandising as a member of the UNY Group enables us to provide our customers with merchandise of high added value at greatly reduced and affordable prices. In the interest also of securing profit for our franchisees, Circle K Sunkus must make haste in enhancing the UNY Group’s business initiatives. In so doing, we aim to strengthen cooperation within the UNY Group, develop highly competitive products, and keep an open mind on new approaches to retail distribution.
In 2012, Circle K Sunkus will accelerate its efforts to create new convenience stores unfettered by static conventions. As 2012 is the Year of the Dragon, my wish is for Circle K Sunkus to take wing, and for the Company to work as one in reaching new heights. We look forward to another year of your patronage and support.
January 1, 2012
