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Our retail and wholesale facilities segment operates an asset management business
for private and corporate customers and businesses that promote the revitalization
of towns. Sales in this segment increased 8.2%, to ¥136,900 million, on a
non-consolidated basis.
The chances of a full recovery in consumer spending have increased, given the
domestic economic recovery. This in turn has encouraged rising construction of
retail outlets in suburban areas, notably in the restaurant and distribution industries.
In addition, new demand has been generated in the area of support for store openings
in better locations with lower costs. This demand has come from retailers, such
as the growing number of home centers and pharmacies, as well as apparel and food
supermarkets, which are taking demand from department stores and specialty stores.
With our unique Land Owner Company (LOC) system, we provide a link between landowners
and companies seeking to open outlets. This system supplies a comprehensive consulting
service, which ranges from market research, planning and support for approval
and license, to design, construction, and management and administration of facilities.
The number of buildings constructed under the LOC system has reached 22,000, and
we now have more than 21,000 landowner customers.
The number of visitors to the Ashibinaa, Okinawa's first outlet mall which opened
in fiscal 2002, reached 1,750,000 in its first year, substantially exceeding our
projections. The mall contains a large number of outlets for foreign brands making
their debut in Japan, and has proved very popular with local residents and tourists.
We will seek to promote new businesses by constructing an innovative model that
uses existing retail outlets. We will also improve our consulting capabilities,
to increase profitability for landowners and develop expertise in special techniques,
such as the securitization of land. |
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