Isetan Mitsukoshi to accelerate smaller store openings
Japanese department store group IIsetan Mitsukoshi Holdings seeks to double group operating profit to Ñ50bn within five to six years, according to the company\'s president, Hiroshi Onishi
Japanese department store group IIsetan Mitsukoshi Holdings seeks to double group operating profit to ¥50bn within five to six years, according to the company's president, Hiroshi Onishi, who was recently interviewed by the Nihon Keizai Shimbun newspaper.
For the current year ending March 2013, the company is expecting a profit of ¥25bn.
Isetan Mitsukoshi hopes to lift operating profit from core department store operations to ¥30bn in five to six years, up 50 per cent from the ¥19.5bn forecast for this year. It aims to do so by offering more of its own private label products, which boast higher profit margins than manufacturers' brands. Sales space for these products will be expanded at key stores.
The company will also accelerate the roll-out of small stores selling cosmetics and other merchandise. It aims to generate ¥2.5bn in operating profit by launching 150-200 such stores.
Online sales will also be strengthened as will credit card usage, both in-store and out.
Isetan Mitsukoshi plans to more than double overseas profit to at least ¥3bn too, with a priority on store openings in South East Asia, where earnings are described as "brisk."
