J. Front to strengthen the development of the apartment and hotel business
J. Front Retailing Co., which operates Daimaru and Matsuzakaya department stores, will strengthen the development of luxury apartments and hotels, said President Tatsuya Yoshimoto.
“We hope to diversify while keeping our business activity at the center,” Yoshimoto said in a recent interview.
J. Front aims to reduce its heavy reliance on department stores and other retail operations impacted by a drop in shoppers due to the spread of COVID-19.
Yoshimoto said forming a capital alliance with a company with expertise in areas other than retail would be an option.
J. Front plans to expand its real estate and financial operations so that the sector represents 40% of the company’s operating profit by fiscal year 2030, compared to 20% in fiscal 2019.
According to Yoshimoto, the company hopes to develop facilities other than retail stores using existing assets, such as annexes to department stores and land where a logistics center used to be.
In Nagoya, the birthplace of Matsuzakaya stores, J. Front is developing an apartment building.
“We will strengthen our organization in order to generate strong profits,” said Yoshimoto, expressing a desire to boost the company’s operations beyond retail by recruiting people with experience in other fields and by teaming up. with other companies.
J. Front made business facility operator Parco Co. a wholly owned subsidiary. J. Front’s retail portfolio also includes Ginza Six, a shopping complex located in the Ginza shopping district of Tokyo.
J. Front’s department store operations “have the opportunity to change,” Yoshimoto said, stressing that digitization is key.
But he was quick to add, “We will not become (the US online retail giant) Amazon.
J. Front’s retail operations will continue to be “based on physical stores and vendors,” Yoshimoto said, noting the company’s policy of using its existing advantages, including stores in excellent locations by downtown and a strong customer base, to expand its online retail services.
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