We will continue to improve corporate value so that we may provide customers with an enriched and flexible lifestyle.
With the aging of society, these are ever more people wishing for lifelong health and beauty. Customer needs have also diversified. We have grown by pursuing the creation of stores that are familiar to and loved by all the people throughout the regions based on our mottos "kindness first" and "Trust first" and support our customer's efforts to create healthy and enriched lives. Expectations will become higher than ever for conveniently located drugstores where anyone can easily engage in consultations and enjoy improved awareness of self-medication by which they can manage their own health.
In the drugstore sector, the operating environment remained challenging, with competition to open stores and reduce prices continuing to intensify and the pace of consolidation and realignment accelerating as companies sought to remain competitive.
In the fiscal year ended May 15, 2017, the TSURUHA Group continued to offer a high level of customer service mainly through advice-based sales, and implemented a number of strategic business initiatives. Specifically, in addition to focusing on advice-based sales of high value-added products that meet customer needs, the Group worked to address the shrinking market caused by Japan’s aging population and intensifying competition, pushing ahead with store renovations aimed at improving convenience for customers by introducing new product categories such as food. Also, in order to strengthen the competitiveness and value of the Group’s private brands, M’s one and Medis’ one, the Group took a number of steps to boost the quality of the product range, such as rolling out new packaging with a more visible, unified brand and updating products.
In store openings, the Group targeted specific areas for multiple store openings as part of its area dominance store-opening strategy and implemented a scrap and build approach for existing stores. In the fiscal year ended May 15, 2017, the Group opened 125 new stores and closed 37 existing stores. As a result, the number of directly managed stores totaled 1,755 as of the year ended May 15, 2017. Regarding our stores in Thailand, the Group opened one new store and closed four, resulting in a total of 19 stores at the end of the fiscal period.
As a result of the above, for the fiscal year ended May 15, 2017, TSURUHA Holdings reported net sales of ¥577,088 million (up 9.4% year on year), operating income of ¥37,071 million (up 18.3%), ordinary income of ¥38,628 million (up 18.4%), and net income attributable to owners of the parent of ¥24,403 million (up 26.3%).
We will continue to strengthen our reliance-based ties with all people nationwide, so we sincerely hope that we will continue to receive your support as Japan's number one drug store chain.
President and Representative Director