MARUI CO., LTD.

cater to a wide range of customers. The store will feature
not only fashionable apparel and accessories but also food
products as well as restaurants and large-scale specialty
stores.
Moreover, the Group intends to open a store in Yurakucho
with sales floor space of 20,000 square meters in
2007. The Yurakucho district is adjacent to Ginza—
Tokyo’s prestigious downtown shopping area. It is also
close to Marunouchi, which is Japan’s largest business
district. Investment in this store is expected to amount to
roughly ¥30.0 billion.
Setting our sights on metropolitan Tokyo and the Kansai
and Chukyo regions, we will step up highly efficient store
network expansion efforts. As internal reserves will cover
anticipated capital expenditures of approximately ¥60.0
billion over the coming three years, we do not plan any
new financing.
MANAGEMENT REFORM GOALS
BUILDING A NEW ORGANIZATION
FOR GROWTH
Marui Group companies made a concerted effort to
implement reforms aimed at creating a new management
organization that will maintain stable growth in Japan’s
retail industry. These reforms focused on:
●Heightening the professional specialization of each
Group company in its respective business field
→to increase the Group’s collective strength, to add value
to the Marui brand, and to get on track for new growth.
by increasing the level of expertise that employees bring
to every aspect of our operations. Through reform of our
management organization, we aim to add value to the
Marui brand and to strengthen customer loyalty.
We expect intensified competition in Japan’s retail
industry. Mindful of this, Marui has to implement fundamental
reforms that enable flexible responses to changing
customer needs and market trends while the Group is still
strong. At the same time, we must improve competitiveness,
profitability, and capital efficiency to ensure steady
growth.
STRATEGY 1
CREATING INDEPENDENT BUSINESSES TO
HEIGHTEN SPECIALIZATION
As part of the reform of our management organization, we
transferred roughly 5,100 parent company employees,
excluding managers and executives, to Group subsidiaries
on October 1, 2003.
Under the new management organization, the Marui
Group’s operations have been reorganized by function
and entrusted to 12 Group subsidiaries. Our aim is for
each subsidiary to enhance its specialization and competitiveness
in its particular business area and thereby
contribute value to the Marui brand.
Moreover, we revamped our personnel organization by
introducing a salary system based on position and performance.
We have built a dynamic, results-driven regime
that promotes employees who are able to draw on an
Based on the fundamental retailing tenet of always
putting the customer first, Marui has consistently won the
endorsement of customers by offering the latest fashions.
In recent years, however, growing homogeneity among
rival stores has become a major problem in an increasingly
overcrowded marketplace. It is therefore crucial for
Marui to develop and market its own distinctive brands
that cater precisely to market demand. Accordingly, to
remain competitive in today’s environment, we must further
strengthen our ability to provide customers with
fashionable products and outstanding customer service
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