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Establishment :        MASATOSHI ITO


   Founded : 1 March 1948

       Head quartered in
        tOKYO, Japan

one of the 15 largest in the world, in terms
                  of sales.
One of Japan's leading retailers,
 It operates about 175 superstores throughout
Japan.


In addition to food (more
 than half of total sales), the stores apparel,
household goods, and more.
Business name          ITO-YOKADO &CO.,LTD.

President                NORIKAZU ITO

Head office              ICHINOMIYA CITY , JAPAN

Distribution centre     KITANAGOYA, JAPAN

Capital                  ¥ 30MILLION

Founded                 MARCH 1948

Nature of Business:    Operation of superstores selling food ,
                         apparel and household products.

Total sales:            ¥1,487.4 billion

Number of employees:   44,299
MASATOSHI ITO founder and
 honorary chairman of ito Yokado
Chairman of Seven-Eleven Japan
      TOSHIFUMI SUZUKI
President and COO:
    SAKAE ISAKA

 Chief Administrative Officer:
            NORITOSHI MURATA




                                   MaSatOSHi
1958: Yokado Co., Ltd. is established, originally to operate department
stores.

1961: Yokado opens a new store, which is essentially a superstore—a
supermarket also selling nonfood items.

1965: Company name is changed to Ito-Yokado Co., Ltd.; superstores are
renamed Ito-Yokado.

1972: Ito Yokado goes public, with listing on the Tokyo Stock Exchange
company, also expands into restaurants, with establishment of the Famil
chain.

1973: Denny’s Japan is established to open Denny’s restaurants in Japan
and Ito Yokado establishes Seven-Eleven Japan to open Seven Eleven
convenience stores throughout Japan.

1975: York Mart supermarket chain is established.
1978: Company launches MarY ann, a chain store specializing
in fashionable in women’s clothing.

1981: StepS , a chain of menswear stores, is established.

1984: Company establishes the rObinSOn’S Japan department
store business and the OSHMan’S Japan sporting goods
business.

1991: Ito-Yokado acquires a 70 percent stake in Southland
Corporation, owner of the 7-Eleven chain.

1992: A scandal involved which leads to the resignation of Ito as
President.

1995: Shiba Park Publishing is formed as a magazine publisher.

 1997: Company expands into China for the first time with the
opening of a superstore in Sichuan.

2001: IYBank begins its operations
5399 Miscellaneous General Merchandise Store

 5541 Gasoline Service Stations

 5812 Eating Places

 5411 Grocery Stores

 5331 Variety Stores
• Retail stores
•Financial Services
•IT / Service
Yokado currently operates three formats


 i)Comprehensive Shopping Centers.


 ii)General Merchandizing Stores (GMSs).


 iii)Neighborhood Shopping Centers (NSCs).
COMpreHenSive SHOpping CenterS




Mall-styled stores featuring various retailing and amusement
facilities
Large-scale stores covering a full range of daily products,
including food, apparel and household goods, to meet
consumer needs in highly populated urban areas
Food supermarkets and specialty
stores to meet consumer needs in
smaller commercial areas
STARTED IN 2001


Offering wide range of varieties through online

       Ordered via
       PC / mobile phone


       Picking of ordered




                                                            Pr
                                                               o
       items on sales floor




                                                           ce
                                                         co


                                                              ss
                                                               e - e rc
                                                            m


                                                                 in
                                                                  m
                                                                       e
         Items packed
         in back room



         Delivered to
         customer
Thank Ito             Scholarship assistance to young
Scholarship           people who have "their own
Foundation            learning" the willingness
(Foundation)
Http://Www.Ito-foundation.Or.Jp/

 
Installation of ice thermal storage systems and
light-adjusting facilities for reduced energy use in
large stores

                                                               Ice thermal storage
                                                               system using
                                                               nocturnal
                                                               ice-making




  Accelerated installation of energy-efficient facilities to
  reduce CO2 emissions
EFFECTS OF AREA MARKET ONCENTRATION STRATEGY
 Greater familiarity with customers


Efficient construction of production bases

Effective sales promotions

Efficient construction of distribution structure

Improved efficiency in guiding franchised stores

Preventing entry by competitors
GLOBAL STRATEGY
Establishment of the supply structure required for
overseas expansion involving area licensees
 Promotion of Group wide joint procurement of
raw materials and products
Sharing of information on global production
regions

DISTRIBUTION STRATEGY
• Establishment of total optimization of distribution
system
• Systematizing the Group’s distribution section
DISTRIBUTION SYSTEMS
        Processing Centers and Perishables Distribution Centers
   Combined Delivery System
Group companies adopt a combined distribution system for greater efficiency
Perishables distribution center jointly operated by Ito-Yokado and York-
Benimaru

 Ito-Yokado
 Perishables distribution centers 5
 York-Benimaru
 Perishables distribution centers 10
 Vegetables and fruits centers 4

Seven-Eleven Japan
Meat processing centers 6
Seasonings packaging centers 8
Vegetable processing centers 9
Ito follows different type of visual merchandising to attract customers




They will upgrade
v.m every week for
new look
Soft-
  drink
 display
  case     Freezer
inverter    case
Group Card Business
Group companies have issued over 30
million cards at present

Millennium          2.43 million CARDS
CARD SAISON


 Member’s          1.58 million
 Card

CLUB ON            2.41 million
CARD SAISON

Ito-Yokado          7.12 million
Point Card

Seven Card*1         3.11 million

 Nanaco            12.85 million
Multiple formats and solid market share in major metropolitan areas.

Well known regional brands

Developed private label and loyalty marketing programs

Pricing image

Very strong organic growth (i.e., comparable and identical store sales)
consistent productivity and execution across divisions

Weak in own brand sales.

Japan’s economy.

Spending too much cost in transport.
Business expansion in North America

Joint ventures and acquisition for more expansion.

Discount sales development.

Improve sales performance.

Reduce operating cost.
Fierce competition.

Wal-Mart low prices is the biggest threat for Yokado

New player entering into the retail industry.

Frequent changes in fashions
Ito yokado

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Ito yokado

  • 1.
  • 2. Establishment : MASATOSHI ITO Founded : 1 March 1948 Head quartered in tOKYO, Japan one of the 15 largest in the world, in terms of sales.
  • 3. One of Japan's leading retailers, It operates about 175 superstores throughout Japan. In addition to food (more than half of total sales), the stores apparel, household goods, and more.
  • 4. Business name ITO-YOKADO &CO.,LTD. President NORIKAZU ITO Head office ICHINOMIYA CITY , JAPAN Distribution centre KITANAGOYA, JAPAN Capital ¥ 30MILLION Founded MARCH 1948 Nature of Business: Operation of superstores selling food , apparel and household products. Total sales: ¥1,487.4 billion Number of employees: 44,299
  • 5. MASATOSHI ITO founder and honorary chairman of ito Yokado Chairman of Seven-Eleven Japan TOSHIFUMI SUZUKI President and COO: SAKAE ISAKA Chief Administrative Officer: NORITOSHI MURATA MaSatOSHi
  • 6. 1958: Yokado Co., Ltd. is established, originally to operate department stores. 1961: Yokado opens a new store, which is essentially a superstore—a supermarket also selling nonfood items. 1965: Company name is changed to Ito-Yokado Co., Ltd.; superstores are renamed Ito-Yokado. 1972: Ito Yokado goes public, with listing on the Tokyo Stock Exchange company, also expands into restaurants, with establishment of the Famil chain. 1973: Denny’s Japan is established to open Denny’s restaurants in Japan and Ito Yokado establishes Seven-Eleven Japan to open Seven Eleven convenience stores throughout Japan. 1975: York Mart supermarket chain is established.
  • 7. 1978: Company launches MarY ann, a chain store specializing in fashionable in women’s clothing. 1981: StepS , a chain of menswear stores, is established. 1984: Company establishes the rObinSOn’S Japan department store business and the OSHMan’S Japan sporting goods business. 1991: Ito-Yokado acquires a 70 percent stake in Southland Corporation, owner of the 7-Eleven chain. 1992: A scandal involved which leads to the resignation of Ito as President. 1995: Shiba Park Publishing is formed as a magazine publisher. 1997: Company expands into China for the first time with the opening of a superstore in Sichuan. 2001: IYBank begins its operations
  • 8. 5399 Miscellaneous General Merchandise Store  5541 Gasoline Service Stations  5812 Eating Places  5411 Grocery Stores  5331 Variety Stores
  • 9. • Retail stores •Financial Services •IT / Service
  • 10. Yokado currently operates three formats i)Comprehensive Shopping Centers. ii)General Merchandizing Stores (GMSs). iii)Neighborhood Shopping Centers (NSCs).
  • 11. COMpreHenSive SHOpping CenterS Mall-styled stores featuring various retailing and amusement facilities
  • 12. Large-scale stores covering a full range of daily products, including food, apparel and household goods, to meet consumer needs in highly populated urban areas
  • 13. Food supermarkets and specialty stores to meet consumer needs in smaller commercial areas
  • 14. STARTED IN 2001 Offering wide range of varieties through online Ordered via PC / mobile phone Picking of ordered Pr o items on sales floor ce co ss e - e rc m in m e Items packed in back room Delivered to customer
  • 15. Thank Ito Scholarship assistance to young Scholarship people who have "their own Foundation learning" the willingness (Foundation) Http://Www.Ito-foundation.Or.Jp/  
  • 16. Installation of ice thermal storage systems and light-adjusting facilities for reduced energy use in large stores Ice thermal storage system using nocturnal ice-making Accelerated installation of energy-efficient facilities to reduce CO2 emissions
  • 17. EFFECTS OF AREA MARKET ONCENTRATION STRATEGY  Greater familiarity with customers Efficient construction of production bases Effective sales promotions Efficient construction of distribution structure Improved efficiency in guiding franchised stores Preventing entry by competitors
  • 18. GLOBAL STRATEGY Establishment of the supply structure required for overseas expansion involving area licensees  Promotion of Group wide joint procurement of raw materials and products Sharing of information on global production regions DISTRIBUTION STRATEGY • Establishment of total optimization of distribution system • Systematizing the Group’s distribution section
  • 19. DISTRIBUTION SYSTEMS Processing Centers and Perishables Distribution Centers Combined Delivery System Group companies adopt a combined distribution system for greater efficiency Perishables distribution center jointly operated by Ito-Yokado and York- Benimaru Ito-Yokado Perishables distribution centers 5 York-Benimaru Perishables distribution centers 10 Vegetables and fruits centers 4 Seven-Eleven Japan Meat processing centers 6 Seasonings packaging centers 8 Vegetable processing centers 9
  • 20. Ito follows different type of visual merchandising to attract customers They will upgrade v.m every week for new look
  • 21. Soft- drink display case Freezer inverter case
  • 22. Group Card Business Group companies have issued over 30 million cards at present Millennium 2.43 million CARDS CARD SAISON Member’s 1.58 million Card CLUB ON 2.41 million CARD SAISON Ito-Yokado 7.12 million Point Card Seven Card*1 3.11 million Nanaco 12.85 million
  • 23.
  • 24. Multiple formats and solid market share in major metropolitan areas. Well known regional brands Developed private label and loyalty marketing programs Pricing image Very strong organic growth (i.e., comparable and identical store sales)
  • 25. consistent productivity and execution across divisions Weak in own brand sales. Japan’s economy. Spending too much cost in transport.
  • 26. Business expansion in North America Joint ventures and acquisition for more expansion. Discount sales development. Improve sales performance. Reduce operating cost.
  • 27. Fierce competition. Wal-Mart low prices is the biggest threat for Yokado New player entering into the retail industry. Frequent changes in fashions