The "Total-Living" Strategy: Moving from Conception to the Phase of Generating Results.
With unwavering commitment, we will realize growth and enhance corporate value.
As the economic and social environment surrounding consumer electronics distribution undergoes drastic changes, we have built a new business model that goes beyond the confines of traditional consumer electronics retailers as an industry pioneer. The "Total-Living" strategy targets not only individual customers but entire households to provide a comprehensive range of services related to "living" and housing, both of which are essential to everyday life.
Having accumulated investments in housing-related fields over the past 14 years, the foundation we have built has now matured, and the "Total-Living" strategy is finally entering the phase of generating tangible results. In particular, the next two to three years will be the critical period that tests our true value. We will implement all necessary measures with unwavering commitment.
As announced in our financial report, our consolidated performance for the fiscal year ended March 31, 2026, showed an increase in net sales, driven by progress in the development of our LIFE SELECT stores and the strong performance of our PB (Private Brand) + SPA products. On the other hand, we experienced a temporary but significant decline in profits. This outcome, however, was entirely the result of deliberate and strategic reforms. In particular, our decision to clear approximately 24 billion yen worth of inventory was a proactive move aimed at increasing inventory turnover and improving asset efficiency. This strategic clearance will allow us to further accelerate our growth strategy moving forward.
In light of this series of reforms, we have revised our target for achieving a PBR (Price Book-value Ratio) of 1.0x, moving it forward from the fiscal year ending March 31, 2030—as originally stated in our "Mid-Term Management Plan (FY2026/3–FY2030/3)"—to within the next two years. This represents my strong commitment to management that prioritizes asset efficiency, as well as my absolute confidence in achieving this goal.
The core of our growth strategy is to accelerate the expansion of our large-scale "LIFE SELECT" stores. With a declining birthrate and population reduction, a shrinking demand for consumer electronics is inevitable, and sustainable growth cannot be achieved through a mere extension of conventional measures. Under these circumstances, "LIFE SELECT," which embodies our "Total-Living" strategy—the engine of our growth—possesses a clear competitive advantage that transcends the confines of traditional consumer electronics retailers. It is an experiential store that offers not only appliances but also furniture, interior goods, toys, renovations, and housing consultations, creating an exciting space that three generations of the family can enjoy together.
Customers can deepen their interest in their homes, sparked initially by home appliances, leading to broader touchpoints with our Group through renovations, home purchases, and even housing loans. These LIFE SELECT stores serve as strategic pillars to secure a trade area of 500,000 people and rapidly increase our local market share. Our strong ability to attract customers has also drawn high expectations from other industries, further accelerating the pace of our store development.
Furthermore, our circular resource system, which integrates home appliances, housing construction, and environmental initiatives within the Group, is an important foundation supporting our "Total-Living" strategy. We will also contribute to the realization of a sustainable society by providing environmentally friendly products and services.
I am confident that the "Total-Living" strategy will deliver exciting experiences to our customers while achieving sustainable growth. Please look forward to the future of Yamada as we boldly step into this new stage of growth.
Noboru Yamada
Representative Director, Chairperson and CEO