The whole Group worked together in the first quarter to achieve the medium-term Lawson Group Challenge 2025 target of attaining No.1 recommended brand from customers, society, and friends. We promoted various measures under The Lawson Group Sweeping Transformation Executive Committee and endeavoured to resolve medium- to long-term issues, acquire new revenue opportunities, and improve job satisfaction in order to ensure the sustainable growth of the Group as a whole. We also continued to earnestly create consumer value in stores, the closest place to our customers, with continuous reference to our concept of “Community-based x individual customer and individual store-focused operations.” Furthermore, we promoted AI-driven measures and other digital technologies as part of our quest to achieve “Real x Tech Convenience.”

In the Domestic Convenience Store Business, we strove to enhance delivery by introducing a system that enables users to check the availability of in-store items via an app and expanding the number of products we handle. We also advanced the introduction of our AI-driven new ordering system, AI.CO. The number of stores offering food delivery services expanded to 6,446*. Meanwhile, we developed various measures to make shopping more enjoyable for our customers through the Happy Lawson Project that is part of our vision to create “The hub of refreshment in every community.” We will continue to offer considered and heartfelt customer service in our stores and move forward on environment-conscious measures including the reduction of food loss and waste, plastic usage, and CO2 emissions.

As a result of the above initiatives, existing-store sales in Japan rose 2.8% year on year in the first quarter of FY2024.

Regarding our Seijo Ishii Business, sales expanded primarily at street-level stores and outlets housed within station complexes. On the product front, daily foods and Seijo Ishii’s own deli items which are prepared in-house in the Central Kitchen, continued to generate firm sales, while sales of fruit, vegetables, meat, and fresh fish increased mainly at roadside stores.

In our Entertainment-related Business, with respect to our ticketing business undertaken by Lawson Entertainment Inc., concerts and other events enjoyed brisk demand which resulted in a year-on-year increase in our ticket transaction value. Cinema complex business by Lawson United Cinemas, Inc. started to offer new entertainment experiences in our cinema complexes that leverage cutting-edge technology, including the opening of a new theater in April with state-of-the-art immersive sound.

Regarding our Financial Services Business, the usage of Lawson Bank ATMs rose year on year in FY2024 as the number of people out and about increased. The gradual introduction of new ATMs since January 2024 is helping to expand available service ranges by, for instance, facilitating cash charges for electronic money on machines equipped with contactless IC.

In the Overseas Business, we are accelerating the expansion of potential new store opening areas and the number of new stores, which included the opening of our first store in Shandong Province in March. We sought to address the slowdown in the overall economy and changing consumer purchasing behavior through cost controls and other measures, resulting in a year-on-year increase in profits for that business.

While the scheduled delisting of Lawson, Inc. on July 24 is fast approaching, we remain as determined as ever to move forward with our efforts to make Lawson the store of choice for customers and attain No.1 recommended brand. And strive to achieve the Lawson Group’s vision of turning our stores into “The hub of refreshment in every community” as we approach our 50th anniversary in 2025, and we ask for your continued understanding and support.

* Number of stores at the end of May 2024