Top Message

Message from our President and Representative Director and CEO

We, the G-7 Group, plan to strongly advance our existing businesses, new businesses and overseas businesses and deal with profit oriented management. We will continue to make efforts to aim at developing to become a global corporation that continues 100 years from its foundation.

Current term performance and its main factors.

During the fiscal year running from April 1, 2018 to March 31, 2019, we pushed forward with the reformation of personnel and organization development. We also improved profit-oriented productivity and worked to strengthen our earning capacity both in Japan and abroad. We proactively held events which exceeded the boundaries of the group, such as the G-7 Mall Festival and the large “thank you” sale, and implemented sales strengthening measures which utilized the group’s synergy. As a result, consolidated results showed an increase in income and profit: Sales: 122.502 billion yen, (2.2% increase compared to the previous fiscal year), Operating profits: 5.017 billion yen (16.0% increase compared to the previous fiscal year), Ordinary income: 5.019 billion yen (9.9% increase compared to the previous fiscal year), Net income attributable to owners of parent: 3.041 billion yen (14.8% increase compared to the previous fiscal year.)

The favorable performance was a result of the strength of Autobacs, and car-related businesses, and the Gyomu Super and quality foods business.

With regards to Autobacs and the car-related businesses, sales of drive recorders remained strong due to increased awareness of safe driving. We promoted total car support through the expansion of sales of car-related goods, centered on our main products of tires and wheels, and by implementing vehicle inspections and sales. Through this, we worked to improve customer service. Sales of tires, a main product, were sluggish, due to the downturn from the last-minute demand which accompanied last year’s price rise. However, sales of tire chains greatly increased after it was announced that tire chains were mandatory in some areas which could expect heavy snowfall. As a result, operating profits rose greatly, with a 20.1% increase compared to the previous fiscal year.

Gyomu Super and the quality foods business remained strong. We opened and relocated five branches of Gyomu Super, which provides safe ingredients at a low price. We also opened and relocated four branches of Terabayashi, which sells meat. Also, by searching for quality products around the country which have a high added value, the quality foods business continued to show good results.

Regarding our other businesses, we continued to push ahead with the opening of branches of our steak chain “Ikinari Steak”, our health exercise classroom “Curves”, and our BAKE cream puff specialty store Croquantchou ZakuZaku. In the agricultural business, we changed our sales method this term from “purchase and sell” to consignment sale.

  • Ikinari Steak Miki store
    Ikinari Steak Miki store
  • Autobacs drive recorder sales area
    Autobacs drive recorder sales area
  • Gyomu Super Higashikurume store
    Gyomu Super Higashikurume store

Targets and initiatives going forward

The consolidated earnings forecast for the fiscal year running from April 1, 2019 to March 31, 2020 is as follows: Sales: 140 billion yen, (14.3% increase compared to the previous fiscal year), Operating profits: 5.300 billion yen (5.6% increase compared to the previous fiscal year), Ordinary income: 5.500 billion yen (9.6% increase compared to the previous fiscal year), Net income attributable to owners of parent: 3.350 billion yen (10.2% increase compared to the previous fiscal year.)

In the retail industry, we anticipate tough rivalry which exceeds industry and business type. It is thought that the future looks unclear and that the harsh management situation will continue, due to changes in individual consumption, the employment situation and the consumption tax hike. However, we will aim for our performance targets, and continue to push forward with the reformation of personnel and organization development. We will also improve profit-oriented productivity and work to strengthen our earning capacity by refining our abilities. Through a management system which can handle market fluctuations and the development of diversified businesses, we will work to construct a corporate structure which can expect stable growth.

Specifically, through the strengthening of location development, we aim to open 30 – 40 stores in the year, and develop and advance new business and types of business both in Japan and overseas. We will expand the group overall, by continuing to proactively conduct M&A and collaborations in industries and business types where synergy in the group can be expected.

With a view to securing human resources, we will employ more seniors (60-80 years of age) and women. We will not be bound by conventional set working hours, but will try to implement a system of working in which employees can choose their working hours freely.

Message to shareholders

The G-7 Group will continue to respond to the expectations of shareholders and stakeholders by returning to the basic management policy of stable mid- to long-term growth, and the establishment of a financial base. We will continue to raise the profitability of each business and continue to grow. With regards to dividends in the current fiscal year, we plan to pay 35 yen per share as an interim dividend, and 35 yen per share as a common dividend of the year-end dividend. We will pay a special dividend of 8 yen, based on this term’s performance, for a total of 43 yen (78 yen for the year).

We ask our shareholders for their continued guidance and support.