Aeon delivered record high operating revenues this half, rising by 18.7% to JPY4.1tn ($US34.4bn). Operating income grew by 28.8%.
Revenues grew in all retail channels
Aeon's supermarket and discounter stores achieved 28% growth in operating revenue to JPY1.6tn (US$13.1bn), with operating income increasing by 14.7%. These results follow improvements in the fresh and deli offering, an extended offer of locally sourced products and newly acquired Daiei's urban style store formats that helped generate 10% sales growth. Convenience stores also generated a robust 16.6% increase in operating revenues to JPY178.1bn (US$1.5bn).
General merchandise stores achieved 2% growth in operating revenue, driven by better service through higher staff numbers on the shop floor and store refurbishments. Revenues from its drug and pharmacy division rocketed by 267.4% following store investments and the acquisition of Takiya & Shimizu Yakuhin.
International markets are also growing with operating revenues in ASEAN and China both increasing by over 20%.
Continued expansion in H2 and beyond
Aeon will continue to invest in new and existing stores. Following the success of Daiei's refurbishments, Aeon now plans to invest in 20 stores by the end of the financial year, doubling its initial target. In Hong Kong, the retailer will continue to spend its HK$420m (US$54.2m) budget on growing and improving the store network. Click here for more details on Aeon's expansion in all formats in Hong Kong and Thailand.