Medium-Term Targets and Business Plans
The UNITED ARROWS Group has identified consolidated sales of between ¥110 billion and ¥120 billion and consolidated ordinary income of between ¥10.5 billion and ¥11.5 billion as its medium-term management targets for the fiscal year ending March 31, 2014. Positioning efforts to reinforce existing businesses at the heart of its ongoing activities, the UNITED ARROWS Group will also work diligently to develop new sales channels and to enter new fields. Through these and other means, the Group will secure a position as the dominant specialist fashion store group.
The UNITED ARROWS Group’s medium-term business strategies are comprised of four core elements.
１ Reinforce existing businesses
As a part of efforts to reinforce existing businesses, the Group will bolster existing retail and online sales stores. At the same time, the UNITED ARROWS Group has designated the BEAUTY&YOUTH UNITED ARROWS and UNITED ARROWS green label relaxing businesses as key drivers of future growth together with COEN CO., LTD. Collectively, steps are being taken to aggressively open new stores as an additional means to promote growth and expansion.
２ Develop new sales channels
The UNITED ARROWS Group is committed to developing new sales channels that will actively expand points of customer contact.
In July 2010, THE AIRPORT STORE UNITED ARROWS LTD. commenced operations opening stores under a new business format targeting commercial facilities within airports. In quick succession, THE STATION STORE UNITED ARROWS LTD. and THE HIGHWAY STORE UNITED ARROWS LTD. opened new stores in commercial spaces within railway station buildings in November 2011 and services areas along highways in December 2011, respectively. Moving forward, the UNITED ARROWS Group is primed to quickly establish successful business models in each channel, which will be harnessed as a part of the Group’s store opening strategy.
In its department store development activities, the Group launched a new UNITED ARROWS women’s stand-alone business in February 2011. As a part of this initiative, steps were taken to open the UNITED AROWS DAIMARU KOBE WOMEN’S STORE. Moving forward, the UNITED ARROWS Group will ensure flexibility in developing new store business models taking into careful consideration the specific characteristics of each market.
In its licensing business, UNITED ARROWS LTD. will harness its brand equity nurtured over a lengthy period. Every effort will be made to develop new businesses in collaboration with other companies. As a prime example of these endeavors, “itoya WITH UNITED ARROWS” was opened in the established stationery store Ginza ITO-YA in October 2011. The store features a clothing and related products corner set up jointly with license manufacturers. Looking ahead, UNITED ARROWS LTD. will work to augment the products of collaborating license manufacturers and develop business opportunities across major nationwide department stores.
３ Expand overseas
In its overseas business development activities, UNITED ARROWS LTD. is already engaging in ongoing marketing encompassing wholesale sales in Hong Kong and test sales in such countries as Singapore. In determining the most appropriate timing for a full-fledged entry into the overseas arena, UNITED ARROWS LTD. will adopt a cautious approach taking into consideration the global economy and market trends.
４ Enter new fields
UNITED ARROWS LTD. will consider entering new areas outside the fashion industry including the household goods, furniture, and other lifestyle fields. To this end, UNITED ARROWS LTD. will collaborate with other companies through alliance, licensing, and other arrangements.