Leading Asian retailer AEON has revealed its full year 2015 results, reporting that operating revenue increased by 15.5% to JPY 8.2tn, while operating profit increased by 25.2% to JPY 177.9bn.
Growth in all segments
- Supermarkets and discount stores operating revenue rose by 20.9% to JPY 3.1tn. Here, the priority has been on restructuring stores and developing new store formats, while reducing purchasing costs and offering more locally sourced goods.
- Drugstore and pharmacy operating revenue increased by 131.7% to JPY 592.4bn. AEON has expanded the availability of prescription drugs in-store and has consolidated the drugstore company under Welcia Holdings.
- Small-sized store operating revenue increased by 21.5% to JPY 310.1bn.
- 1.8% rise in gross margin.
- Launch of the ‘WAON POINT’ services system, with the ambition of creating one of Japan’s largest points services, linked to local society.
Daiei Inc: 2015 achievements & plans for 2016
In 2015, AEON has made a series of improvements to the Daiei supermarket chain, including the roll out of new store formats (Food Style and urban supermarkets), which have achieved comparable growth of 10%; the development and expansion of new ranges and work on generating group synergies.
In 2016, it will continue to open new stores and refurbish stores to the new concepts, including plans to launch five new urban supermarkets and refurbish 35 stores to the concept, as well as refurbish five stores to the new Food Style concept.
2016 ambitions & investment plans
AEON is targeting an operating revenue of JPY 8.4tn, a 2.73% increase versus 2015, and operating revenue of JPY 190bn, a 13% increase versus 2015. The retailer plans to invest JPY 500bn, an increase of 6.8bn, versus last year, with a focus on general merchandise, supermarkets and discount stores.
Strategy: 'Shift to four growth markets'
- Asia – expand to new areas with a focus on Indonesia, Vietnam, Cambodia and China’s Jiangsu province; operate over 300 stores in China/ASEAN; double operating revenue and number of stores.
- Senior-oriented markets – Welcia Holdings reorganization; 10 million senior members; ambition to operate Japan’s largest drugstore chain.
- Urban markets – Accelerate small store launches; plans to expand food sales in Japan’s three major metropolitan areas.
- Digital markets – Launched new e-commerce platform, AEON.com in 2015, working towards ‘building a foundation for accelerated growth in digital business’.