J.FRONT RETAILING CO., LTD.
[Translation]
To whom it may concern
July 24, 2015
Company name: J. FRONT RETAILING Co., Ltd. Representative: Ryoichi Yamamoto, President (Securities code: 3086, First Section of the Tokyo Stock Exchange and Nagoya Stock Exchange) Inquiries: Takayuki Makita, Senior General Manager of Corporate Governance Promotion, Management Strategy Unit
(TEL: +81-3-6895-0178 (from overseas))
Notice Regarding Rebuilding of Main Building of Daimaru Shinsaibashi Store of Daimaru Matsuzakaya Department Stores Co. Ltd. and Associated Recording of Extraordinary Losses
J. FRONT RETAILING Co., Ltd. (the "Company") and its consolidated subsidiary Daimaru Matsuzakaya Department Stores Co. Ltd. resolved at meetings of their respective Boards of Directors held today to rebuild the main building of Daimaru Shinsaibashi store.
In order to maintain the original historic dignity of the streetscape of the Midosuji side, the rebuilding plans will proceed in a way that will preserve the building facade on the Midosuji side, which holds historical value.
1. Reason for rebuilding
The Company is promoting a business model in which, aiming to grow together with the regions in which it operates, it actively engages in efforts to enhance the appeal of overall areas with its stores at the core (strategy of urban market dominance). Amid intensifying competition across the trading area of the Shinsaibashi district, the Company has been proceeding with plans to redevelop the Shinsaibashi district. This redevelopment is centered on the Daimaru Shinsaibashi store (the main building and north and south wings) and also involves utilization of the surrounding real estate and commercial facilities in the district.
The Company made this decision to rebuild the main building of the Daimaru Shinsaibashi store based on the judgment that rebuilding this building, which is in a core position in the aforementioned redevelopment, will not only radically strengthen competitiveness but also generate a new bustling area in the Shinsaibashi district, providing further revitalization to the area.
The north wing and south wing of the Daimaru Shinsaibashi store will undergo renovation, which will include the relocation of the retail spaces currently operating in the main building to there, and business trading will continue.
2. Date of closure of business trading at the main building
December 30, 2015 (plan)
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3. Future outlook
For the consolidated financial results for the first six months of the fiscal year ending February
29, 2016, the Company plans to record about ¥7.8 billion in extraordinary losses related to the rebuilding of the main building. Net income is expected to decrease by about ¥5.0 billion.
At present, the consolidated earnings forecasts have remained unchanged.
END
(Reference)
Outline of Daimaru Shinsaibashi store
Location | 7-1, Shinsaibashisuji 1-chome, Chuo-ku, Osaka |
Store general manager | Taro Sawada |
Net sales | ¥84,511 million (Fiscal year ended February 28, 2015) |
Retail floor area | 77,490 m2 (Retail floor area of main building: 31,000 m2) |
Number of employees | 521 (As of February 28, 2015) |
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