J. FRONT RETAILING Co. Ltd. (the ‘Company') announced that PARCO CO., LTD., a consolidated subsidiary of the Company, has decided to close the Matsumoto PARCO as follows. In the Medium-Term Business Plan (Fiscal year 2021 to fiscal year 2023), together with three key strategies ‘real x digital strategy,' ‘prime life strategy' and ‘developer strategy,' the Company positions and is promoting the ‘management structure reforms' as the most important measures.

In order to achieve reform of the management structure, the Group is mainly working on reducing fixed costs by reviewing the organizational and personnel structure, and the costs structure for each business, as well as on improving management efficiency by narrowing business foundations based on future prospects and growth potential, to build a future growth platform. As part of these efforts, PARCO CO., LTD. has decided to close Matsumoto PARCO in order to redistribute its limited management resources to growth fields, which it believes will contribute to the realization of sustainable growth. As a commercial facility in the Matsumoto City center, Matsumoto PARCO has been operating for 38 years earning the support from the people of the local area since August 1984.

Over that time, although PARCO CO., LTD. worked to strengthen sales capabilities, increase efficiency of operation methods, etc., which includes the floor area expansion in 1996, intense competition in the Matsumoto City center in recent times as well as new openings and renewals of competing stores in the suburbs are continuously progressing in the vicinity of Matsumoto City. Currently the store is receiving the support of numerous local customers. However, in light of future changes in the retail environment surrounding the store and the investment burden that would be required going forward, among other factors, PARCO CO., LTD. has decided to close operations of the store two years from now, at the end of February 2025.

Date of termination of operation February 28, 2025 (planned) Treatment of employees In principle, employment of employees will be continued through redeployment.