CO-CREATION
Co-Creation Sustainability Report 2017

Co-Creation Sustainability Report 2017

CO N TENTSMARUI GROUP’s Co-Creation and Inclusion

Sustainability Management

01

MARUI GROUP’s Co-Creation Philosophy

38

02

Message from the President

40		Core Theme 1
Customer Diversity and Inclusion

41		Core Theme 2
Workplace Inclusion

42		Core Theme 3
Ecological Inclusion

04 Dialogue 01:	Co-Creation, All Customers,
Inclusion, and Happiness
08

MARUI GROUP’s Sustainability

10	MARUI GROUP’s Co-Creation Sustainability
Management Business Model
Inclusion Championed by MARUI GROUP
12Development of Inclusive Stores that Offer Joy to All
13	Departure from Industry Conventions —Positioning of Food Vendors in Entrance Areas
14	Introduction of Hakata Marui Successes
at Existing Stores16	Deployment of a Lineup of Sizes
Matched to Customer Lifestyles
17	Development of an Environmentthat Can Be Enjoyed by All

18	Promotion of Financial Inclusion
for the Benefit of All Customers

		43	Tracking of Environmental Footprint
across the Value Chain
		44	Incorporating Reduction
into Business Activities
		45	Responsible Procurement Activities
with Business Partners
46	Core Theme 4
Co-Creation Corporate Governance
		47

MARUI GROUP Code of Conduct

Overview of MARUI GROUP

19	Financial Services Matched to the Lifestyles
of Each Customer

Ratings, Awards, and Recognition

54

Third-Party Opinion

20	Realization of a Japan that is Welcoming
to Non-Japanese Residents

55

Messages from the Editorial Staff

56

About Co-Creation Sustainability Reports

21	Concern for Money and the Future
Among Younger Generations27	Development of an Organizationthat Utilizes Diversity28	Healthcare Management Underpinning
Personal Growth29	Investments in Human Resources
to Stimulate New Growth30
		Dialogue 03:
Diversity Cultivating Innovation

34 Dialogue 04:		Millennials Slated to Drive the Futureof MARUI GROUP

unique business model, which merges retailing and finance, in response tochanges in the times and in consumer needs. Today, we are engaged inco-creation management, a practice that entails creating value together withall of our stakeholders. Our goal is to co-create happiness, which is born outof the harmony between the interests of all stakeholders.
We are focused on the concept of “inclusion” as the key to responding tocustomer needs and social issues, which change with the times, and forging
a better future. Through co-creation activities advanced with all stakeholders,
MARUI GROUP will endeavor to help build a flourishing and inclusive
society that offers happiness to all.


52

26	Workplace Inclusion Generating a Capacity
for Innovation

Since its founding in 1931, MARUI GROUP has continued to evolve its

		48	MARUI GROUP Human Rights Policy /MARUI GROUP Occupational Healthand Safety Policy
50

22	Dialogue 02:
A New Form of Financial Security
and Future Potential

MARUI GROUP’s Four Core Themes

MARUI GROUP’s Co-Creation Philosophy

Co-Creation Management Reports
www.0101maruigroup.co.jp/en/ir/lib/i-report.html
Annual integrated reports focused on
management strategies

MissionContribute to co-creating a flourishing and inclusive societythat offers happiness to all
Corporate Philosophy
Continue evolving to better aid our customers
Equate the development of our people withthe development of our company

Co-Creation Sustainability Reports
www.0101maruigroup.co.jp/en/sustainability/
lib/s-report.html
Annual sustainability reports focused onconnections with communities and society

Founding DNA
Creditability should be built together with customers
Pioneer spirit of creating opportunities

Editorial Policy
In compiling Co-Creation Sustainability Report 2017, we endeavored to make the report ofinterest to readers, selecting topics with a focus on important initiatives based on MARUIGROUP’s business characteristics. In July 2017, we created a sustainability page on our
corporate website, which we will continually update with environmental, social, and governance (ESG) data for use by ESG evaluation institutions and ESG-minded investors alike.
Sustainability Site
www.0101maruigroup.co.jp/en/sustainability/
ESG DATA BOOKs
www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

01Message from the President

MARUI GROUP’s vision is fora flourishing and inclusive society
in which happiness is available to all.
    

MARUI GROUP has begun practicing forward-looking co-creation sustainability
management together with all stakeholders to contribute to the realization of a flourishingand inclusive society in which happiness is available to all.

MARUI GROUP would like to thank all of its stakeholders

In relation to core theme 2—workplace inclusion—for their ongoing support and understanding. We would

this report discusses our quest to promote diversity inalso like to thank first-time readers of MARUI GROUP’s

order to generate innovation for facilitating ongoingco-creation sustainability reports for taking interest in

growth as well as our investments in human resources,

the Company.

the greatest driver behind the creation of corporate value.

MARUI GROUP has been publishing Japanese-

This report will also touch on other subjects. In terms

language CSR reports since 2008. We rebranded theseof environmental efforts, our focus will be reduction initia-

reports in 2016 as co-creation sustainability reports. This

tives conducted during the course of our business. We will

represented our first step in practicing forward-looking

be building further on these initiatives in the future.

sustainability management that merges our business,

However, we formulated an idea of how we will proceed,

environmental, social issue response, and governanceand we would like to look briefly at these initiatives.

initiatives in an integrated manner.

On the governance front, we would like to introduce

In conjunction with this rebranding, we also rede-our revised MARUI GROUP Code of Conduct and thefined the focus of our business from serving all custom-

newly established MARUI GROUP Human Rights Policy

ers to promoting inclusion. This redefinition wasand MARUI GROUP Occupational Health and Safety Policy.

accompanied by the establishment of four core themes

In relation to overall themes, the topic of stakeholder

related to inclusion that are also based on the Unitedengagement is a common thread running throughout the

Nations Sustainable Development Goals.

report. I would like to extend my thanks to everyone who
contributed in this regard.

Core Theme 1: Customer Diversity and Inclusion
Core Theme 2: Workplace Inclusion
Core Theme 3: Ecological Inclusion
Core Theme 4: Co-Creation Corporate Governance

MARUI GROUP hopes to practice forward-looking
co-creation sustainability management together with allof its stakeholders to contribute to the realization of aflourishing and inclusive society in which happiness isavailable to all. I would like to ask readers to feel free tooffer any opinions or critiques regarding this report.

This report will focus largely on initiatives related tocore themes 1 and 2.
With regard to core theme 1—customer diversity andNovember 2017

inclusion—we will look at MARUI GROUP’s efforts todevelop products, services, and stores that can beenjoyed by all customers regardless of age, gender, or
physical characteristics. At the same time, we will reporton the progress of our financial inclusion initiatives, whichseek to make the financial services that had previously

Hiroshi Aoi
President and Representative Director
Representative Executive Officer

been restricted to the wealthy available to youths andeveryone else, and explain our future plans in this area.

02

03

Dialogue 01

The concept of inclusion is
integral to sustainability
management.

Ken Shibusawa
ChairmanCommons Asset Management, Inc.

Co-Creation, All Customers,
Inclusion, and Happiness     
MARUI GROUP’s vision is for a flourishing and inclusive society in whichhappiness is available to all. It is not enough for only certain people to prosper. Society cannot be said tobe flourishing if all people do not experience prosperity. The following is a discussion between Ken Shibusawa,a long-term investor and chairman of Commons Asset Management, Inc., a company that has fully
embraced the concept of inclusion, and MARUI GROUP President Hiroshi Aoi during which they talk of
the new potential brought about by the perspective of inclusion.

Sustainability in Business Realized through Inclusion

Dialogue 01

The direction of our business strategies
coincided with the resolution ofsocial issues from an inclusion standpoint.

Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.

04

    
Aoi: MARUI GROUP’s sustainability management isbased on four core themes and linked to the principlesof the United Nations Sustainable Development Goals.
Among the core themes are customer diversity andinclusion and, on an internal basis, workplace inclusion.
In this manner, inclusion is a major focus for theCompany. We have previously spoken of the concept of“all customers,” but this concept lacked clarity. We wereable to pinpoint the source of this lack of clarity when the
Sustainable Development Goals put forth the idea ofinclusion as incorporating everyone and leaving no one
behind. This idea had the same goal as MARUI GROUP’s
co-creation management, which aims to expand theintersection between the interests of all stakeholders.
We thus realized that “inclusion” more concisely communicated our goals than the idea of “all customers.”
Shibusawa: The concept of inclusion is integral tosustainability management. I came to realize this fact
when I read Rongo and Soroban (“The Analects ofConfucius and Abacus”) by Eiichi Shibusawa, my greatgrandfather. Eiichi Shibusawa is viewed as the father ofcapitalism in Japan and is known to have contributed tothe establishment of around 500 companies and 600
universities, hospitals, and social welfare institutions. In achapter on rational management in Rongo and Soroban,
he describes the idea that, no matter how rich a manager
may become, the happiness this wealth grants will be
fleeting if a large portion of society falls into poverty as aresult. This idea is the same as the concept of sustainability, which it would seem, existed even 100 years ago.

Aoi: In the past, MARUI GROUP’s business succeeded byfocusing on younger generations. After the turn of the
century, however, the operating environment underwent
drastic change, and it became clear that continuing tofocus only on products for younger generations would
result in an unsustainable business and invite risks. This
realization notwithstanding, our past successes had
caused us to become trapped by a sense of identity thatassociated MARUI GROUP with younger generations,and we were unable to break away. The chance to escapethis predicament came with the opening of a new store in
front of Yurakucho Station in Tokyo, which took placearound that time. Yurakucho is an area frequented bypeople of all ages, meaning that this new Marui would
have to win the support of both younger and older generations. This was what inspired us to broaden our focus
from younger generations to all ages.
Shibusawa: This ability to evolve together with thechanging operating environment illustrates MARUIGROUP’s affinity with sustainability.
Aoi: This change brought about increases in both customers and earnings. Our next step was to expand therange of sizes we offered. A prime example of these
efforts can be seen in shoes. Previously, shoes had only
been available in sizes near the middle of the bell curve,
and shoes were not offered for foot sizes that deviatedtoo far from the average foot size. People with such footsizes therefore could not find the shoes they sought,
forcing them to pay exorbitant amounts for custom-madeshoes or to wear sneakers despite wanting high heels.
This situation deprived specific groups of people ofcertain benefits of society. It is often said that the05

Dialogue 01

number of customers is declining due to a shrinking
population. However, from the perspective of inclusion,
we will see that many potential customers are, in fact,
being left behind. This realization led us to work to
include such individuals, which in turn drove the growthof our business. In this manner, the direction of our business strategies coincided with the resolution of social
issues from an inclusion standpoint.

Danger of Eradicating Inconsistency and Inefficiency    
Shibusawa: There are two schools of thought withregard to efficiency. One is a mechanical approach thatsees value as being born from efficiency and rationality.
Throughout my career in the investment world, I haveused this approach, believing the increased efficiency iscertain to generate corporate value. However, blindly
pursuing efficiency without entertaining new possibilities
bears the risk of excluding exciting new ideas. The otherschool of thought sees life as inherently inconsistent andinefficient, presenting the possibility of new discoveriesarising out of inefficiency. Innovation is at times theprocess of taking something that initially seemed to beinconsistent or inefficient and linking it to a new vision
for the world to create something never seen before.
For this reason, it is dangerous to attempt to eradicate
all inconsistency and inefficiency from the world. Thisidea was in part behind my establishment of Commons
Asset Management.
Aoi: A company is not like a machine, but is rather driven
by people and is therefore like a living organism.
Moreover, companies are not sustained exclusively by
their employees, but are rather supported by entire
ecosystems comprising their various stakeholders. In
other words, a company is a place that is formed byvarious organic relationships.
Shibusawa: People sometimes speak of two different
types of power. One is the power to increase efficiency.
Although this power is necessary, it can only be exhibitedin comparison to things that already exist and therefore
cannot give birth to something completely new. The othertype of power is the power to create new things, sometimes by incorporating inconsistency. There cannot betrue progress without this power. The idea of co-creationis also linked to this type of power. I therefore think this isa concept that requires more attention.
Aoi: You speak of the idea of focusing on “ands” versus“ors.” Inconsistency is one of the fundamental reasons

06

why engagement is important. Two people will no doubt
have differing views, making ideas appear in terms of“ors.” Focusing only on these differences or inconsistencies will make one unable to see the similarities in theirviews. However, if we change our perspective, we willcertainly find similarities or shared aspects—the “ands”
of their views. At MARUI GROUP, we see corporate value
as building upon these “ands.”
Shibusawa: MARUI GROUP describes corporate value
as arising from the intersection of five rings of stakeholders. I see these rings as having elasticity. Engagement iswhat moves these rings. If this movement can bedirected toward the center of the intersection, the intersection between the interests of these stakeholders will
no doubt grow larger. Accordingly, while it may be possible to entrust the efficiency-increasing power to theorganization, the creating power, the power that goesbeyond judging current situations to foresee the future,must be the power of management.

Necessity of Inclusion for Future Generations    
Aoi: Around New Year’s 2017, I watched an interview
with people who had just reached adulthood in which
they were asked about their resolutions for that year, andthe responses were quite shocking. Around 70% of thequestioned individuals expressed concern for the futureand in relation to money. Not knowing exactly how toaddress these concerns, they would resort to conservation and saving. Perhaps better than these options would

be the approach of making gradual, cumulative investments to save and increase one’s money with time. This
interview reinforced the idea that it was our mission to
inform young adults of this approach.
Shibusawa: Saving money for the future is a prudent
decision. However, the annual interest rate offered onbank deposits is only 0.002% in Japan. This means that
if one were to save ¥10,000, roughly U.S.$100, over
20 years, the 0.002% interest rate would result in it only
growing to ¥10,020. In this manner, saving alone cannot
produce sufficient results. Conversely, the annual growthrate of 3% in the global population suggests that thebase growth of the global economy will be about 3%
each year. A service that will take advantage of this fact
is Tsumitate NISA, which is slated for launch in January
2018. This service provides tax exempt dividends andtransfer gains over a 20-year period. While the maximum
amount that can be invested in a year is ¥400,000,
which may seem a bit low, this equates to ¥33,333 amonth, a level that is sufficient for investments conducted as part of normal life. After 20 years, it is likelythat the amount returned will be substantially larger thanthe collective principal of ¥8,000,000 invested over thisperiod. If one were to start investing in their 20s, theywould have accumulated a substantial amount of assets
by the time they were in their 40s. I hope that younger
people will catch on to this fact as soon as possible.
While it is important to be satisfied with what one has,
it is equally important to understand what necessities
one lacks. MARUI GROUP is poised to build upon thisconcept by introducing the new perspective of retailingin financial services.
Aoi: MARUI GROUP has long been engaged in retail.
Looking back, I realize that it was the joy brought about
by earning the gratitude of customers that has been oursource of motivation. We have thus responded to thevarious changes society has undergone by considering
what services would bring the greatest joy to our customers at any given time. Examining what services we canbest provide, we have sometimes been led to start fromzero. Our business has changed as a result. We are now
rapidly transitioning to a real estate model; our stores aretransforming into showroom-type spaces or sources of
new experiences and venues for consulting; and our
methods of distributing products are increasingly using
an e-commerce approach. Nevertheless, our connection
with customers is still retail in nature. However, the definition of “retail” is changing for MARUI GROUP. This new
definition of “retail” goes beyond selling products toinclude the provision of retail finance and other financial
and non-financial services.
Shibusawa: That is truly an example of the creating power
behind co-creation. I am confident in MARUI GROUP’s
ability to create new innovations by incorporating thepower of different fields. The word “invest” comes fromthe Latin word “investire,” which means “to clothe in, cover,or surround.” In this manner, investment is not simply
about sinking funds into something, but is rather aboutsurrounding oneself with various types of growth andperspectives. Based on this idea, I hope to open the eyesof people who have only ever seen investment in the
traditional sense and help them see how anyone caneasily invest to accumulate the assets that will help themin their future.

Ken Shibusawa
Chairman, Commons Asset Management, Inc.
Executive Director, Shibusawa Eiichi Memorial Foundation
Director, Keizai Doyukai

After working at a foundation operating in the field of international relations,
Ken Shibusawa acquired a Master of Business Administration in the UnitedStates and then joined the financial industry. Working at foreign financial
institutions in Japan, he was involved in the dealing of Japanese government
bonds and currency options and the sale of derivatives. He also held a position
as the Japanese representative of a major U.S. hedge fund. Mr. Shibusawa struckout on his own in 2001, later establishing the current Commons AssetManagement in 2007 and becoming its chairman in 2008.

07

Customers

Goal of Co-Creation Management:
Expansion of Intersection between
the Happiness of Stakeholders     
MARUI GROUP’s Sustainability
MARUI GROUP aims to create a prosperous and inclusive society in which happinessBusiness
partners

Investors

is available to all. The Company is supported by a wide range of stakeholders, including customers, shareholders, other investors, business partners, members of local

Expansion of
stakeholder interests(happiness)

communities and the greater society, and employees. Although the interests of thesevarious stakeholders are often seen to be in opposition, the reality is that there is asignificant intersection at which the interests and values of different stakeholders
overlap. Adopting the perspective of inclusion, MARUI GROUP sees true corporate
value as being able to expand this intersection between the happiness of all
stakeholders.
For this reason, stakeholder engagement is crucial as it plays a major role inharmonizing the interests of different stakeholders and expanding the intersection
between these interests. Such engagement must be conducted from a long-term
perspective looking toward the future. As we take part in ongoing engagement with

Communities andSociety

Employees

all stakeholders, it is important to continue evolving our business frameworks andpractices. Through such engagement and the new ideas born therein, we will create
new value. This is MARUI GROUP’s vision for innovation and the ideal form ofco-creation sustainability management that we pursue.

08

Corporate value

Intersection of all stakeholder interests

Expansion of this intersection

Improvement of corporate value

09

MARUI GROUP’s Co-Creation Sustainability Management Business Model

Forward-Looking
Co-Creation Sustainability Management
MARUI GROUP strives to develop a business that turns issues into value through co-creation with its various stakeholders.
Japan is known for the various challenges it faces as a developed nation, in its aging population and declining birthrate,
and this country has a population of approximately 126.8 million diverse individuals. It is the goal of MARUI GROUP tocontribute to the realization of a flourishing and inclusive society in which no one is excluded and happiness is available toall. The path to accomplishing this goal is MARUI GROUP’s vision for co-creation sustainability management.

→P.38

A Flourishing andInclusive Society
Offering
Happiness to All

Changes in Customers
and Society ransition to e-commerceTShift from goods to experiences
Emergence of a sharing economy
Declining birthrate andaging population
Increase in demand frominbound travelers
Rise of cashless payment methods
Change of focus from saving
to investment
End of era of low interest rates

Management Base

Customer Base

Value Creation

Unique Characteristics of MARUI GROUP
Realized through Integrated Group Management

Customers visiting Marui andModi stores a year

Total Grouptransactions

Approx.

200 million

Retailing

Customers visiting MARUI GROUP
e-commerce sites a year

Finance

Approx.



110 million

EPOS cardholder basecomprising primarily youths andyoung adults

Customer-Focused Employees

6.36 million

Co-Creation Management
Founding DNA

1,933.7 billion

¥



over




“Creditability should be built together with customers”“Pioneer spirit of creating opportunities”

Rakuchin Kirei series

Facilities

Private brandproducts

MARUI GROUP
e-commerce sites

Credit cards

Rakuchin Kirei series shoes
Total aggregate sales of

3.5 million pairs

Average annual growth rate for
EPOS card17%
Industry-leading income per
EPOS card

6,500

¥

Industry’s lowest ratio ofdelinquent debt boasted by
EPOS cards

1.45%

Creation of New Demand

Members of LGBT community
representing a ¥5,940 billion market

One in 13 people






in JapanDifferently abledindividuals in Japan

8.6 million
Senior citizens
over age 65 in Japan34.8 million
Youths and adults aged
15 to 39 in Japan33.7 million
Non-Japanese individuals
living in Japan

2.4 million

Co-Creation with All Stakeholders
10

As of March 31, 2017

11

INCLUSION

Retailing

Inclusion Championed by MARUI GROUP

01

Development of Inclusive Storesthat Offer Joy to All

Departure from Industry Conventions —Positioning of Food Vendors in Entrance Areas

With eyes to 2020, the year of the Tokyo 2020 Olympic and Paralympic Games, MARUI GROUP will promote customer
diversity and inclusion and strive to ascertain the ideal form of products, services, and stores that bring joy to all customers, regardless of their age, gender, or physical characteristics, through co-creation with all stakeholders.

The majority of department stores in Japan position cosmetics and brand-name shops in their entrance areas. Maruistores have also adopted this industry convention in the past. When developing Hakata Marui, we departed from thisconvention, positioning food vendors in entrance areas to develop the first inclusive, lifestyle-oriented Marui store thatcan be enjoyed by customers of all ages and genders. This innovation was inspired by co-creation activities with customers.
MARUI GROUP’s Response
Food vendors were positioned in entrance areas and the
portion of floor space devoted to apparel was reduced
from around 60% to roughly 30%, making for a store thatis easy to visit for people of all ages and genders.

Customer Input“It would be nice to have a store that can be visited daily.”“I want a store that is enjoyable for everyone.”“I look for a comfortable atmosphere.”

Customer Diversity and Inclusion“Inclusion” is the concept of including those who havepreviously been excluded. MARUI GROUP seeks toachieve both sustainability and profitability throughinnovations to its businesses. As part of this undertaking, we seek to develop stores that offer a comfortableenvironment in which all customers, including seniorcitizens, differently abled individuals, non-Japanesepeople, and members of the LGBT community, can enjoy
shopping with peace of mind regardless of their age or
gender. The development of such stores encapsulates
the concept of “customer diversity and inclusion” advocated by MARUI GROUP.

Previously

Going forward• Younger generations• Product lineups focused on apparel• People of all ages, genders, and physical characteristics• Expanded lineup of food vendors, services, and experiences

MARUI GROUP’s concept of “all customers”

Previously

Progress Unconstrained by Past Successes —Co-Creation Store Development
Prior to the opening of Hakata Marui, we held more than
600 planning meetings at which we spoke with an aggregate total of 15,000 customers. At these meetings, input
from customers indicated a desire for a store that could bevisited daily, that is enjoyable for everyone, and that offers
a comfortable atmosphere. Based on this input, wereduced the ratio of floor space devoted to apparel items
to around 30%. This led to the creation of the first inclusive, lifestyle-oriented Marui store. As a result, the numbers of visiting customers and purchases at Hakata Maruiin the fiscal year ended March 31, 2017, were 1.3 times
and 1.2 times higher than at Yurakucho Marui while thenumber of new EPOS cards issued was 1.5 times higher.
These figures surpassed prior records for newly opened
Marui stores. Hakata Marui continues to be loved by various customers today.
An amalgamation of MARUI GROUP’s co-creation store
development efforts with customers, the initiatives implemented at Hakata Marui are currently being introduced atother existing stores. These initiatives also signaled thestart of the Company’s co-creation activities with business

partners. Looking at a longer timeframe, we achieved a
60% increase in total purchase numbers over the past
decade, with this number reaching 91 million in the fiscal
year ended March 31, 2017. This increase was a result ofrevisions to store development approaches; product categories, increasing the portion of floor space devoted torestaurants and service providers to around 30%; hospitality; and services—revisions that transformed our stores,
which were previously oriented toward younger generations, into places that are inviting to customers of all ages.
Ratios of Floor Space Devoted to Product Categories
Hakata Marui
Food and services 32%

Sundries 40%

Apparel 28%

Marui and Modi stores
14%

FY201433%

Food andservices
Sep. 2017

53%

Sundries

29%

Apparel39%

32%

Number of Purchases and Distribution by Age Group91 million

Ratio of Senior Citizens
The population of senior citizens over theage of 65 in Japan is 34.8 million.

27.5%
Source: Population Estimates, Statistics Bureau,
Ministry of Internal Affairs and Communications

12

Ratio of Differently Abled Individuals
In Japan, 8.6 million people havephysical or mental disabilities.

6.8%
Source: Annual Report on Government
Measures for Persons with Disabilities,
Cabinet Office, Government of Japan, 2017

Ratio of LGBT Community Members
One in 13 people in Japan is part of the LGBT
community, representing a ¥5,940 billion market.

7.6%
Source: LGBT Survey 2015,
Dentsu Diversity Lab, DENTSU INC., 2015

Age 40 and
above
64%

51 million
29%
Located on the first floor of Hakata Marui,Dashidokoro Hyoshiro is the first shop
integrated with a dining establishment
operated by Ajino Hyoshiro.

At planning meetings, we continued to
discuss store development concepts,
floor layouts, product lineups, andother matters with customers.

Age 39 and
below
36%

71%

FY2009FY2011FY2013

FY2015FY201713

INCLUSION

Retailing

Inclusion Championed by MARUI GROUP

02

Introduction of Hakata Marui Successes
at Existing Stores
Planning meetings with customers have since been conducted at five stores, enabling us to discover that demand forfood vendors in entrance areas was not region-specific but was rather shared by all stores. MARUI GROUP thus undertook renovations at the five stores to position food vendors in entrance areas. As a result of these efforts, transactions
and purchase numbers at these stores showed year-on-year increases of 25% and 30%, respectively, in October 2017.
Customer Input
If entrance areas contain high-ticket items, cosmetics, andaccessories, only certain people will use the store andothers will find it difficult to visit.

MARUI GROUP’s Response
Food vendors are being positioned in entrance areas so thatthey can be enjoyed by all customers, making the stores
more inviting to customers of all ages and genders.

Report on Planning Meeting with Customers
An important part of MARUI GROUP’s co-creation store
development approach is to present our ideas for store
design concepts and product lineups to customers inorder to solicit their opinions, discuss any necessary
improvements, and revise these ideas as needed. Thisapproach was adopted at Kitasenju Marui. In this store, we
opened a food area known as Kitchen Garden 350 in thesecond floor entrance, adding to the existing food areas on
the first floor and basement floor. This new food area
features a total of 11 shops that are new to Marui storesand that primarily use vegetables and other healthy ingredients. A planning meeting was held with customers inNovember 2017, one month after the opening of the new
food floor.

Planning Meeting with Customers

At Kitasenju Marui on November 4, 2017

One month has passed since Kitchen Garden 350 was opened. What are your impressions of thisfood area? In addition to the general theme of “gathering and connecting,” this area was also basedon the concept of consuming 350 grams of vegetables each day, as is recommended by the
Ministry of Health, Labour and Welfare.
Sachiko Sakai Sales Representative, Kitasenju MaruiAs Kitchen Garden 350 was made by converting an accessory sales floor to a food area, there is anatmosphere of elegance about this area that sparked my interest the moment I saw it. There are also a
lot of rare delicacies like taco rice and California rolls. I want to have lunch with my friends here.
This area previously comprised mainly shops dealing in brand-name products for women, making
it difficult to approach. Now, my eyes are drawn to what’s inside the stores even as I walk past, andit feels much more inviting. I think with the sandwiches, though, it would be better to allow customers more freedom in choosing combinations.
Taking my kids to eat in one of the restaurants on the upper floors or at the basement food court
and then buying macarons or bread at Kitchen Garden 350 feels very satisfying. It is like a dream.
The vegetable juice is easy to drink even for those who dislike vegetables. I want to drink it withmy kids.
I was struck by how easy Kitchen Garden 350 made it to get my daily vegetables. It would be niceif items were available in a wider range of prices and in smaller sizes so that they can be eaten
even when time is short. Kitchen Garden 350 is a great place to have my husband wait when I go
shopping or to use as a meet-up spot.
My generation uses social media a lot. All of the cute food items available just scream to have their
pictures taken, and all are ripe for Instagram. If Kitchen Garden 350 was open earlier, I could get
takeout before going to work and then eat it for lunch.

The Kitchen Garden 350 food area opened in the second floor entrance is basedon the concept of “gathering and connecting.” This sales area features shops thatsell food items by weight as well as spaces in which customers can eat the items
they purchased in the stores.

Actually, items such as the visually appealing sandwiches and rose-shaped gelato are new creations
made by tenants exclusively for Kitasenju Marui with the aim of drawing in Instagram users. We
hope you will continue to provide us with feedback that can be used to make Kitasenju Marui a
store that brings even more joy to customers. Thank you for joining us today.

Message from a Tenant

When touring Kitchen Garden 350, customers tried recommended menu items from all 11 shops and were provided with information on the ingredients used. Customers then graded the food area based on various factors andalso offered opinions on what aspects they were fond of and where improvements were needed.

14

Valuing Customer Input and Providing Products That Can’t Be Found Anywhere Else
We opened CHEF’S PRESS, a specialty sandwich shop featuring a menu based on the concept ofhealthy food and drinks, in Kitasenju Marui’s Kitchen Garden 350. Our relationship with MARUIGROUP goes back 16 years. The Company’s commitment to developing stores together withcustomers is one of its most noticeable characteristics. When opening up our shop in Kitasenju
Marui, we were given new tasks: developing a wider range of sizes and establishing a menu that
can attract any customer. We thus took to creating items exclusively for Kitasenju Marui, including
smaller items, colorful and visually pleasing sandwiches aimed at Instagram users, and freshjuices made using locally produced vegetables. The end result was a menu comprising several
products that can’t be found anywhere else.

Jun Tashiro
CHEF’S PRESS, Kitasenju Marui
AntenDo, Machida Marui
Antendo Co., Ltd.

15

INCLUSION

Retailing

Inclusion Championed by MARUI GROUP

03

04

Deployment of a Lineup of Sizes
Matched to Customer Lifestyles

Development of an Environmentthat Can Be Enjoyed by AllMARUI GROUP has come to be aware of how many customers have been forced to give up on having enjoyable shopping
experiences due to an inability to make purchases because of a lack of the ideal product or size. Our first step to address
this issue began with the expansion of the range of sizes for our private brand shoes and apparel products. Today, we areengaged in an even wider range of size-related initiatives together with tenants at our stores.

MARUI GROUP aims to be a frontrunner in providing products, services, and stores that can be enjoyed by all customers,
including senior citizens, differently abled individuals, non-Japanese people, and members of the LGBT community andregardless of age, gender, or physical characteristic. Our efforts to develop stores that are inviting to all people are currently being advanced with an eye to the year of the Tokyo 2020 Olympic and Paralympic Games.

MARUI GROUP’s Response
The range of portions and sizes for food and apparel(clothing) and shoe products is being expanded in light ofimmense customer demand.

Customer Input
Even when there was a product with a design I liked,
I couldn’t buy it because it wasn’t in my size.

Private Brand Initiatives

Initiatives by Tenants

Our Rakuchin Kirei series of shoes covers
the foot sizes of 100% of the feet ofJapanese women, with 16 sizes spanninga range from 19.5 cm to 27.0 cm.

Macrobiotic Light Food Evah no Morirevised its menu to make 95% of its
display lineup available in half sizes or“sample” sizes.

The range of sizes of our Rakuchin Kirei
series of pants was expanded to 12 sizes
spanning from XXS to 7L and encompassing waist sizes from 55 cm to 88 cm.

Lindt Chocolate Boutique began sellingits popular Lindors in a manner thatallows customers to choose from as manyor as few as they want of these chocolates in each of the more than 10 flavors.

Our VISARUNO line consists of readymade and order-made business wear andother clothing, and our Rakuchin Keikailine of shoes comprises 16 sizes ranging
from 22.5 cm to 30.0 cm.

The lineups of casual and dress items at
Extedlab produced by Tetehomme are
now available in six sizes, from S to 4L,
with emphasis placed on the wearer’s
silhouette.

Message from a Tenant

Focus on Size Held by 73% of Customers

73%■ Customers longing for the perfect size Product categories with significant
size-related demand
Food products

68%

Shoes

68%

ApparelSundries
Handbags

64%
29%
26%

Source: Survey of 3,000 people conducted by Macromill, Inc., July 201516

Macrobiotic Light Food Evah no
Mori has always offered a robust
lineup of boxed meals. Hearing
from MARUI GROUP that somecustomers couldn’t find meals thatmatched their smaller appetites, we
further expanded our lineup to
include smaller sizes. These smaller Shoko Kobayashi
Macrobiotic Light Foodmeals are also more affordable,
Evah no Mori, Hakata Maruiaddressing customer needs andEvah Dining Inc.
winning much praise from people of
all ages. I am overjoyed that wewere able to take part in co-creation.

Customer Input
Does it cause problems for the store or other customers
when one brings children or strollers or is in awheelchair?

Universal Design Facilities
Seeking to identify thesources of concern forpeople using wheelchairs
when shopping, we invited
such individuals to take partin planning meetings. In terms of actual accessibility, we
have been making stores easier to navigate for customers in wheelchairs by having Mirairo Inc. examine thefacilities when we develop new stores or renovate existing stores. In addition, we utilized pictograms and floor
guides in which black and white images and backgrounds are inverted at Kinshicho Marui to make themeasier to see for customers with weak vision or cataracts.

MARUI GROUP’s Response
We are developing stores that offer comfort and security
in terms of both facilities and customer service.

participate in LGBT pride
events, such as RAINBOWPRIDE and RAINBOW FESTA.
This trend began with Maruiand Modi stores located in
Shinjuku and Shibuya and has since spread to stores in
the Kansai, Hakata, and other areas nationwide. This isjust one facet of our efforts to broadcast our support forand engage in co-creation with the LGBT community. As
another facet, an event designed to support LGBT job
seekers was held at Yurakucho Marui in collaboration with
ReBit in February 2017. Taking advantage of our Order
Suits and the wide range of sizes we provide, members of
the Yurakucho Marui sales floor staff helped customers
choose the suit that best matched who they were.

Improvement of Customer Service
Employees undergo Service
Care-Fitter training to foster aspirit of hospitality and tolearn how to accommodate
various customers. This
training is conducted in-house by 11 Group employeesthat have acquired official instructor qualifications. In
addition, external lecturers are invited to implement
training for the Universal Manner Placement Examination
program and to perform LGBT manner training. Employees
also receive training on catering to the needs of inboundtravelers performed by non-Japanese lecturers.

Messages from Customers“Marui made the first high-heel shoes
I was able to wear. It was a dream come true.”“The first time I opened up about my sexuality to amember of a store’s sales staff was at Marui, and thisindividual helped me try on clothes for an hour.”“I wore my first yukata at Marui. I never thought ayukata could suit me this well.”“I didn’t know that Marui was such an inviting store.
I think this should be advertised more.”

Promotion of an LGBT-Friendly Atmosphere
MARUI GROUP seeks to provide a comfortable shopping
environment for members of the LGBT community andother sexual minorities. As part of these efforts, we

17

INCLUSION

Finance

Inclusion Championed by MARUI GROUP

01

Promotion of Financial Inclusion
for the Benefit of All Customers

Financial Services Matched to the Lifestyles
of Each Customer

MARUI GROUP’s vision for financial inclusion is to provide financial services that can enrich the lives of younger generations and everyone else. This vision shares the same perspective as a core concept of the United Nations Sustainable
Development Goals—the idea that no one will be left behind.

Services for Younger Generations and Everyone ElseIn the past, financial services have primarily been for thewealthy. The concept of FinTech seeks to break away fromthis tradition by providing financial services that can beused by everyone, regardless of their income or age.
MARUI GROUP sees its mission as being to promote
financial inclusion by supplying financial services to everyone. Accordingly, we strive to provide financial services

that enrich the lifestyles of everyone, particularly the
youths and young adults for whom existing financial services lie out of reach. In October 2017, we broadened thescope of individuals we seek to include to encompass
non-Japanese individuals and foreign exchange students
residing in Japan. We are thus expanding the range ofservices we offer in order to provide such individuals witheasy access to a wide variety of financial services.
Transactions in the FinTech Business¥1,723.3 billion

Wealthy

EPOS
cardholders

As of September
2017
Youths¥354.9 billion

07

FY2007

Services Provided Based on Industry Standards
Judging of credit card applications and setting of credit
limits are conducted based on a customer’s age,profession, and income.

09

FY200911FY201113FY201315FY201517FY2017■ Card shopping transactions outside of Marui stores■ Card shopping transactions at Marui stores■ Cash advance transactions ■ Services, IT, etc.

New Connections with Customers Formed
through AnimeMARUI GROUP sets initial credit
limits lower than other companies
in order to make EPOS cards
easier to use for university students and minors without credit
card experience. As a result, manycustomers receive their first credit
card from MARUI GROUP, and wehave been able to build and maintain relationships withcustomers over the long term. As a result, for approximately 30%*1 of our cardholder base, the EPOS card wastheir first ever credit card. In addition, we encourage
cardholders to upgrade to Gold cards, which feature noannual fees, based on their usage frequency and purchase amounts. Approximately 25% of cardholders
currently carry Gold or Platinum cards.

In the fiscal year ended March 31, 2017, the ratio of new
EPOS cards issued to people age 39 and below was
52%. This ratio was 84% with regard to anime-inspired
collaboration cards, illustrating how these cards are
helping us form new connections with customers inyounger generations. The newly launched GODZILLAEPOS CARD helped the number of anime-inspired cards
issued reach 7,000 in October 2017, representing 13%
of all cards issued in this month.

GOOD
THRU
有効期限

MONTH / YEAR

People Aged 15–39 in Japan

Non-Japanese People Living in Japan
Increase of 20% since December 31, 2012,
primarily comprising foreign exchange students

33.8 million

2.4 million

Source: Population Estimates, Statistics Bureau,
Ministry of Internal Affairs and Communications

Source: FY2016 Statistics on Non-Japanese
People Living in Japan, Immigration Bureau ofJapan, Ministry of Justice

1.45%
Fiscal year ended March 31, 2017

■ Age 39 and below 

52%■ Age 40 and above 48%■ Age 39 and below 26%■ Age 40 and above 74%

Industry*2*2 Source: Consumer Credit Statistics from Japan (2016), Japan Consumer
Credit Association

18

GODZILLA EPOS CARD©HIDEAKI SORACHI/SHUEISHA,TV TOKYO, DENTSU, BNP, ANIPLEX

TM&©TOHO CO., LTD.

Message from an Employee

Cardholders by Age

Ratio of Delinquent Debt for
EPOS Cards
Lowest rate in the industry achieved throughunique credit philosophy

Gintama EPOS CARD

*1 Source: Epos Card Co., Ltd.

EPOS Card

Younger generations increasingly focusing
more on the future over the present

MARUI GROUP’s Credit Philosophy
Rather than being based on a customer’s age, profession,or income, credit should be shaped through a customer’s
usage and payment records.

Cardholder Base Comprising Primarily People
Aged 18–39

4897

6.5 million

Provision of financial services toyounger generations andall other customers

MARUI GROUP has always operated under the belief that creditability should be built together with customers. As opposed
to being assigned credit based on a customer’s age, profession, or income, we feel that credit must be shaped through acustomer’s usage and payment records. The credit standards MARUI GROUP uses in judging credit card applications andsetting credit limits are based on this credit philosophy, which we have cherished since the Company’s founding.

MARUI GROUP started a collaborative campaign with Toho Co., Ltd., tocommemorate the release of Godzilla:
Planet of the Monsters, which
included the opening of the world’s
first official GODZILLA shop. In
addition, the newly launched
GODZILLA EPOS CARD proved
Sho Yoshioka
Anime Business Department
immensely popular, with more than
4,000 cards issued in the first month MARUI GROUP CO., LTD.
after its launch. I look forward toplanning more campaigns that excite
customers.
19

INCLUSION

Finance

Inclusion Championed by MARUI GROUP

02

03

Realization of a Japan that is Welcoming
to Non-Japanese Residents

Concern for Money and the Future
Among Younger Generations

Recent surveys indicate that there are around 2.4 million non-Japanese individuals living in Japan. A new record has
been set for this number in each of the previous four years amid a recent rise in people immigrating to Japan from
Vietnam, Nepal, and other emerging countries in Asia. However, such individuals can often face difficulty acquiring thenecessary living essentials, for example, renting housing or applying for a mobile phone or credit card.

Of the approximately ¥1,700 trillion worth of private financial assets in the country, only 6.6% are held by households
headed by people in their 30s or below.*1 Moreover, a survey has indicated that around 60% of people aged 18–39
are more focused on the future than on the present in terms of finances.*2 This situation is seen as a social issue.

Issues Faced by Non-Japanese Residents of Japan
Non-Japanese individuals face difficulty in areas of normallife including renting housing, working, borrowing money,
and utilizing payment services.

Issuance of Japan’s First Credit Card Exclusively
Available to Non-Japanese Residents
MARUI GROUP hasembarked on a collaborative
venture with Global Trust
Networks Co., Ltd. (GTN),
which specializes in providing comprehensive lifestylesupport for non-Japanese residents of Japan. GTN works
with the goal of hearing “I am happy to be here, Japan!”from all non-Japanese residents. This goal coincides withMARUI GROUP’s own goal of realizing financial inclusion.
Together with GTN, we have launched the GTN EPOS CARD,
which offers services combining GTN’s database of nonJapanese people with MARUI GROUP’s credit card businessplatform. Holders of this card are supported by operatingprocedures that are tailored to the needs of non-Japaneseindividuals spanning from card application to credit services and inquiry response. Accordingly, this credit card isan ideal tool to help non-Japanese residents acquire the

MARUI GROUP’s Response
MARUI GROUP issued a credit card to support nonJapanese individuals in borrowing money and utilizing
payment services as needed.

funds and use the payment services needed for school,
work, permanent residence, or other life patterns. As wesupport non-Japanese residents, we aim to issue 10,000
GTN EPOS CARDs over the first year after the card’s
October 2017 launch and a total of 70,000 cards in the
card’s first five years.
Number of Non-Japanese Residents of Japan
2,030,000

Dec. 31,2012

2,070,000

Dec. 31,2013

2,120,000

Dec. 31,2014

2,230,000

Dec. 31,2015

2,380,000

Dec. 31,2016■ Non-Japanese residents ■ Foreign exchange students
Source: Statistics on Non-Japanese People Living in Japan, Immigration Bureau
of Japan, Ministry of Justice*1 Source: Presentation on Inheritance Tax and Donation Tax, Ministry of Finance, October 2015
*2 Source: Public Opinion Survey Concerning People’s Lifestyles, Cabinet Office, June 2017

Social Issues Among Younger Generations
Vague concerns regarding money and the future arecausing people in younger generations to give up on
self-actualization.

Support Offered by MARUI GROUPMARUI GROUP offers support for accumulating assets
through financial services that allow people to learn about
and increase money.

Faltering Younger Generations
MARUI GROUP conducted a survey regarding money ofapproximately 2,000 people, ranging from those in theirteens to those in their 70s, to see how concerns for the
future are manifesting in younger generations. Thissurvey found that concerns regarding money are shared
among all generations, with more than 90% of respondents admitting to such concerns. Among younger individuals aged 18–39, many indicated having vague
concerns or being in a tight financial situation. These
concerns were linked to insufficient knowledge regarding
asset building, as indicated by around two-thirds ofsurvey participants reporting a lack of understanding ofinvestment (money).

91%
Responses from people aged 18–39■ Has vague concerns 

37%(22 pts. higher than people over age 65)

Message from a Business Partner

Union of MARUI GROUP’s Strengths and GTN’s Insight to Create New Contact Points
MARUI GROUP is earnest in its attempts to address the social issues of non-Japanese individuals
facing difficulty receiving credit cards in Japan. When I first met with President Aoi and other
MARUI GROUP representatives, I was quite impressed with their strong commitment to financial
inclusion, which I felt was in the same vein as our desire to provide credit cards to non-Japanesepeople. MARUI GROUP also offers services that are highly convenient through its expertise inproviding credit cards to younger generations, the real-life contact points it provides in the form of
Marui stores located throughout Japan, and the more than 10,000 facilities affiliated with its EPOS
cards. I am convinced that our alliance with MARUI GROUP will help us provide better service toour primary customers, non-Japanese residents of Japan and young foreign exchange students,
and thereby realize our goal of hearing these individuals say “I am happy to be here, Japan!”20■ Has less than ¥100,000 in bank account 48%(25 pts. higher than people over age 65)■ Currently in a tight financial situation 

33%(19 pts. lower than people over age 65)■ Lacks understanding of investment (money)  67%(26 pts. higher than people over age 65)

Hiroyuki Goto
President
Global Trust Networks Co., Ltd.

Although over 60% of younger generation respondents
stated having aspirations for the future, nearly 70% had
at one point given up on pursuing higher education or
studying abroad due to a lack of money.

■ Has aspirations for the future 61%■H as given up on aspirations
due to a lack of money 

65%

Source: EPOS cardholder survey of 1,000 people aged 18–79, October 2017

Support for Younger Generations

Has concerns regarding money■ All ages Younger Generations Giving Up On
Self-Actualization Due to Concern for the Future

The majority of EPOS cardholders are aged 18–39. We
therefore strive to support younger individuals interested
in investment in accumulating assets by providing financial services that allow such individuals to learn about
and increase financial assets alongside traditional payment services. By offering asset building services basedon accurate financial knowledge, we aim to help resolve
the social issue created by a concern for the futureamong younger generations while boosting earnings.
■W ould be interested in investment
if support was available 

68%

Source: Survey of 2,000 people aged 18–79 conducted by Macromill, Inc.,
September 2017

Source: Survey of 2,000 people aged 18–79 conducted by Macromill, Inc.,
September 201721

Dialogue 02

Aya Maeno
Representative Director, Cras Inc.
Representative, FP Office will
Previous job: School nurse
Current job: Financial planner

Satoko Abeshima

Hiroyuki Nagata

Yoshimi Takahara

Kenta Murayama

Previous jobs: Merchandise Planning Section,
Specialty Store Business Promotion
Department, MARUI CO., LTD.
Institute of Future Research,
MARUI GROUP CO., LTD.
Current job: W omen’s Shoes Section, Omni-Channel
Retailing Department, MARUI CO., LTD.

Previous jobs: Store Support, Marui Family Shiki,
MARUI CO., LTD.
Field and Men’s Bags, Kichijoji Marui,
MARUI CO., LTD.
Current job: Card Application Center,
Kawasaki Marui, Epos Card Co., Ltd.

Previous jobs: STUDIO1, Shinjuku Marui Main
Building, MARUI CO., LTD.
EPOS Cardholder Recruitment, Marui
City Yokohama, Epos Card Co., Ltd.
Current job: Business Promotion Division 2, Business
Promotion Department, Epos Card Co., Ltd.

Previous jobs: Editing Section, Shoes Business
Division, MARUI CO., LTD.
Women’s Shoes, Marui City Yokohama,
MARUI CO., LTD.
Current job: Sales Representative, Marui City
Yokohama, MARUI CO., LTD.

Dialogue 02
A New Form of Financial Security
and Future Potential      
As part of a Groupwide effort to provide new financial services,financial planner Aya Maeno was invited as a lecturer for a series of six financial seminars about
people’s relationship with money, with the first taking place in September 2017. Group employees applied toparticipate in these seminars on their own initiative, with each session being attended by 14 Group employees,
who were separated into teams of seven. Employees were encouraged to leave titles, experience, and age at thedoor to foster a relaxed environment in which participants would be able to engage fully with finance, share theirown concerns about money, and learn. In the following pages, we have compiled a dialogue between
four employees that participated in these seminars and instructor Maeno.

22

Decision to Participate in Financial Seminars    
Aya: Please tell us your reasons for participating in thefinancial seminars, specifically, what inspired you to join.
Also, for this discussion I would like to maintain the same
relaxed environment as in the seminars.
Hiroyuki: Hello, my name is Hiroyuki, and I will be representing the “in their 50s” crowd. The laidback atmosphere of the seminars was refreshing. I was previously
positioned in the Group’s credit card company, after
which I gained experience on the sales floor at Maruistores. Today, I sell insurance products at an EPOS card
application center. I want to be able to recommend products that I truly endorse to customers. I therefore choseto participate in the financial seminars with the aim ofstudying finance from square one.
Kenta: The majority of my 25 years of work experience
have been spent on the Marui sales floor. Recently, I havecome to feel that I could better bring joy to customers if
I were able to offer them a little advice regarding moneyor lifestyles. When I was a kid, nobody taught me aboutmoney, and I would get strange looks from adults if
I spoke of it. Regardless, money is an incredibly important part of living in society. I decided to take part in theseminar because I wanted to learn about money as soon
as possible to prepare for having kids or other changes
that could occur over the course of my life.
Satoko: MARUI GROUP is promoting the concept offinancial inclusion. This idea really resonates with me.

I hope one day to be involved in finance, and this is what
inspired me to participate in the seminar. I am currently
engaged in developing private brand shoe products. At
the moment, we are expanding the range of sizes of ourshoes and otherwise working to make our shoes available to everyone. However, in this quest it becomes easy
to overthink things. I started studying financial planningwith the aim of broadening my perspective, but I could
not see it as relating to me, which kind of left me feelingunsatisfied. Hearing Aya’s lecture on the idea of thinking
backward from one’s goals in life really opened my eyes.
I now want to tell those around me about how I foundhappiness through the seminar and to help them build
a better future for themselves.
Yoshimi: At Epos Card, I am responsible for outside
partner facilities. I have thus taken part in deploying
EPOS cards at non-Marui commercial facilities in Tokyo
as well as in locations from Hokkaido to Kagoshima.
I have always had an interest in finance. This interest
grew deeper after I read a book entitled The 100-Year
Life. When I plotted my own 100-year life plan, I realizedthat I would run out of money if I did not change how
I live. In addition, the seminars coincided with my getting
married. I decided to participate so that I could thoroughly examine how much money would be needed now
that I am not alone. I had previously thought that I was
the only one who lacked knowledge about money.
However, I now know that the things that give me concern or that I do not understand with regard to the life23

Dialogue 02

stages I will undergo in the future are likely to be thesame for other people. If I study and get involved withfinance myself, I should be able to explain these matters
to our customers.
Aya: When you experience something yourself, you
exhibit a new passion when explaining it to others. It
makes it easier to explain your passion to others when
you make new and edifying discoveries or realize something you did not understand before.

a wider range of information. I think the type of financial
information MARUI GROUP staff will offer customers will
not be difficult to understand, but will rather unlock new
possibilities for them.

Joy Brought About by Financial Inclusion

Money Across All Areas of One’s Lifeand for Shaping the Future    
Aya: In the past, money could only be viewed in terms ofspecific applications; you buy insurance from insurancecompanies, deposit money in banks, invest throughsecurities firms, and purchase homes through real estatecompanies. There were no means of looking at money
across all areas of one’s life. People at MARUI GROUP,
however, possess such a means in the form of theirconnections with customers. Moreover, they are able toengage with these customers in a face-to-face manner.
This vantage point allows people at MARUI GROUP tomove beyond simply talking about money in terms ofhousehold finance or investment and act as partners that
help give form to the concept of money as it pertains to
one’s lifestyle or life.
Satoko: I think the idea of viewing money in terms of allareas of one’s life is very important. After participatingin this seminar, I started discussing the future with myfamily. This may be a bit of an exaggeration, but I havecome to think that talking about money can help people
shape their future. Realizing this has given me a newsense of contentment.
Aya: I am also fond of the idea of money being used for“shaping.” When I first spoke with President Aoi, I remember being moved by his talk of how MARUI GROUP sees
all of its business assets as being borrowed from society.
People may mistreat the things they see as belonging tothem, but they will be more careful in their treatment of
the things they borrow, striving to return them in a better
condition than when borrowed. I believe that increasing
the number of people who think about their lives andmoney is tantamount to returning borrowed assets tosociety after shaping a better future for them.
Hiroyuki: Customers come to Marui stores because they
hope to find something good there. In the past, this was
furniture and fashion. Today, we have grown to offer

24

financial services and peace of mind. There are a lot of
older customers who still associate Marui stores withyounger generations or with clothes. I think all we needto do is to tell them what Marui is offering now, which I’msure will change how they view our stores.
Aya: It would seem that, no matter how the products
MARUI GROUP handles may change, the desire of
employees to help customers and contribute to theirhappiness, which lies at the core of the Company’s activities, will remain unchanged. As Marui stores are open atnight and on weekends, customers can go whenever theyplease without feeling as though that time is “lost.” This
fact makes visiting Marui stores a positive experience.
Another strength of MARUI GROUP is that it can informcustomers, even those that are not currently concernedwith money, about the seminars it offers or the systems
it will introduce.
Kenta: What will change going forward is the products
we offer, not the desire to help our customers that has
always driven us. I look forward to increasing the range
of opportunities for customers to discuss money withease going forward. To those of us at MARUI GROUP, theability to issue credit cards on-the-spot in stores seems
completely normal, but it is actually something that isquite impressive. It would be even more impressive if ournext step found us supporting the lifestyles of customers.
Yoshimi: EPOS cards are not only issued at MARUI GROUP
stores; we also have application centers in other commercial facilities located throughout Japan. The scope of
our EPOS card operations will continue to grow in the
future. If employees have a better grasp of financial
concepts, they will be able to provide customers with    
Satoko: Most people have concerns regarding money,
even if these concerns are vague. These concerns linger
in the back of their minds, but they are often unable totake the initiative to resolve them. If we could provide aneasy opportunity for them to address these concerns in
an atmosphere of trust, it would contribute to co-creationand to a greater sense of happiness.
Kenta: By learning about finance, I came to understandhow money should be invested and saved and how tolive a happier life. I really think that money is integral to
our lives. Questions about money differ from, for example, questions about clothing, which one can now answer
for themselves simply by using the Internet. When it
comes to money, many people, myself included, are notvery knowledgeable. I am therefore confident that customers will take an interest in these topics.
Aya: The focus should not be the financial products
themselves, but the mission these products are meant tofulfill. This approach will better contribute to customer
happiness and to forming bonds.
Yoshimi: Such an approach would no doubt help us
resolve customer issues. In fact, it would enable us toassist customers in a very direct manner.

Hiroyuki: I have long thought that good customer service
was a form of added value. If we could go even further
and provide services with even greater value, it would besomething truly impressive. Such services would makeour work more enjoyable by providing more opportunities to offer customers the type of advice that will truly
help them and that they will fully appreciate. I want tobegin giving customers financial advice as soon as possible so that I can help them live content lives.
Aya: One day, customers may come to speak enthusiastically of all they learned when visiting a Marui store on
topics including credit cards, retailing, products, household finances, and investment. This excitement itself will
be a form of financial inclusion. After helping a customer
revise their insurance policy, for example, MARUI GROUP
employees could go a step further to suggest that they
invest the extra income the revision freed up for use after
retirement or utilize this income to go on a family trip.
Such proposals would make customers more proactive
toward money. Wouldn’t that be exciting? Moreover, suchproposals would build trust with customers while bringing the employees making the proposals more joy in theirwork. No matter how much specialized knowledge afinancial planner may possess, they still have to wait forcustomers to come to them. Marui stores, meanwhile,
have always been a viable way to connect with customers in their real lives. This means that you can offer consultation to customers in a place that they are very
familiar with. As a financial planner, I believe this ability
is an amazing asset that is unique to MARUI GROUP.

Aya Maeno
Representative Director, Cras Inc.
Representative, FP Office will

Previously a junior high school and high school nurse, Aya Maeno later got
married, left this career, and bought a home. She became a financial planner
after her spouse’s insurance provider went bankrupt, and has obtained
CERTIFIED FINANCIAL PLANNER® status and is a 1st-grade Certified Skilled
Professional of Financial Planning accredited by the Japan Association for
Financial Planners. Ms. Maeno specializes in providing working women andfamilies raising children with a sense of financial security and an understandingof the potential of money by offering invaluable advice. Each year, she holds morethan 120 seminars and consults with over 300 people on an individual basis.
Moreover, Ms. Maeno has penned numerous works, including the textbook usedin MARUI GROUP’s financial seminars, which is aimed at people committed toreforming their household finances. More recently, she has been overseeing thesection of Epos Card’s insurance site that features comics explaining insurance.
www.fp-will.jp/ (Japanese only)

25

INCLUSION

Human
Resources

Inclusion Championed by MARUI GROUP

01

Workplace Inclusion Generating a Capacity
for Innovation
As part of its efforts to help build a flourishing and inclusive society that offers happiness to all, MARUI GROUP is promoting customer diversity and inclusion. At the same time, we have expanded the concept of “inclusion” to encompass
employees. We therefore also encourage workplace inclusion with the aim of generating a capacity for innovation
through receptiveness toward diverse workstyles and values.

Development of an Organizationthat Utilizes Diversity
Each of MARUI GROUP’s approximately 6,000 employees is different. We believe that innovation is assured when these
employees are accepting of the differences in others and are able to unite with an eye toward social change and demand.
We clearly defined our intent to encourage diversity in the medium-term management plan launched in the fiscal year
ended March 31, 2015, and have thus been promoting diversity with regard to individual talents, gender, and age.
Social Backdrop for Promoting Diversity
The significant changes in the social climate are stimulating transformation in the values of individuals and driving
the diversification of customer needs.

Diversity in MARUI GROUPMARUI GROUP is promoting diversity with regard toindividual talents, gender, and age in order to develop
workplaces that are fertile grounds for innovation.

Venues Through Which All Employees Can Excel
Each of the approximately 6,000 employees working for
MARUI GROUP is a precious human resource that has
been borrowed from society. Based on MARUI GROUP’s
corporate philosophy of striving to “continue evolving tobetter aid our customers” and “equate the developmentof our people with the development of our company,” weaim to provide all employees with venues through which

they can excel. We thus strive to cultivate a workplaceenvironment that is conducive to generating innovationand is characterized by mutual understanding among all
employees, regardless of their age, gender, lifestyle, or
sexual orientation. Through these efforts, we will fostera corporate culture that furthers employee growth andcreates venues that provide opportunities to everyone.

Three Types of Diversity

Two Types of Healthcare Management

Diversity of individual talents
Healthcare management forenergizing employees
Diversity of genders

Contribute to
the Happiness of
Customers

Profession Change System for Breaking Away
from Preconceived Notions

Corporate Culture Encouraging Autonomous
Thought and Action

MARUI GROUP offers a shared, Groupwide humanresources system through which employees can undergo
profession changes between Group companies to foster
diversity of individual talents. As of April 2017, 1,833
employees, or roughly 34% of our entire employee base,had experienced profession changes through thissystem. Being placed in a new profession can kindle a
fresh sense of curiosity and allow employees to escapepreconceptions. Such transitions are not only beneficial
for the employees undergoing profession changes, butalso for the new workplaces in which they are placed.
Through this system, we aim to cultivate employees that
embody a customer-first mentality and are adept at
responding to change in order to make the Group a more
fertile ground for innovation.

MARUI GROUP has established three official
Groupwide project teams: theMarui Future Project Team,the Healthcare Management
Project Team, and the Diversity Project Team. Members
for these project teams are chosen through an open
application system. The members change on an annual
basis, producing a new set of autonomous employeeswith increased knowledge and awareness each year.

Healthcare management for
preventing illnesses

Employees Experiencing Personal Growth After
Profession Change
Other
2%

Diversity of ages

Did not experience2%
Experienced
only a little

Experienced
significantly

10%
Total Group Employees
45.1% female, 19 years of averageconsecutive service, average age of 42

5,732
As of March 31, 201726

Ratio of Employees Changing Positions

Group Employee Turnover Rate

Five year aggregate total of 1,833 employeeschanging positions

Turnover rate greatly lower than the averages forthe retailing and financial industries

34%

2.6%

From April 2013–April 2017(excluding officers and managers)

Fiscal year ended March 31, 2017(excluding mandatory retirement)

Experienced
somewhat

45%

November
2016

41%

Employees Who
Experienced
Personal Growth86%

Revision of Human Resource and Evaluation
Systems and Labor Agreements
A Groupwide committee was assembled in December
2015 to examine the Group’s human resource and evaluation systems. To date, this committee has held discussions
on the implementation of these systems and their quantitative and qualitative targets with a total of 2,600 representatives from the employee base and from the Personnel
Division. Based on these discussions, we launched new
systems centered on value evaluations, which assess
employees based on the sensibilities necessary for exercising our management philosophy and how well they aresuited to each position, and performance evaluations,which look at the results of teams over a given period.
In addition, labor agreements were updated toinclude a clear declaration that individuals are not tosuffer discrimination on the basis of sexual identity orsexual orientation. Moreover, an internal helpline wasestablished to allow employees to receive consultation
with regard to LGBT issues. This helpline adds to theexisting external helpline.
27

INCLUSION

Human
Resources

Inclusion Championed by MARUI GROUP

02

03

Healthcare Management Underpinning
Personal Growth

Investments in Human Resources
to Stimulate New Growth

MARUI GROUP practices healthcare management through coordination between the activities of the Health Management
Division and the health insurance union. We focus on preventive healthcare management aimed at avoiding illness andalso proactive healthcare management for energizing and motivating employees. We thus encourage employees to change
their attitudes and behaviors to further improve corporate value and contribute to society through higher productivity.

MARUI GROUP recognizes the growth of employees that are committed to helping others as the source of all the value itcreates. Accordingly, we strive to foster a corporate culture that is respectful of diverse values and in which all employees
can feel energized and continue growing. At the same time, we are committed to cultivating the human resources thatwill shape the future through proactive investments in recruiting and developing human resources.

Standard Corporate Health Measures
Activities are primarily focused on preventive measures forprotecting employees from lifestyle diseases, mental
health issues, and other illnesses.

Enhancement of Proactive and Preventive
Healthcare Management Activities
MARUI GROUP has launched a project for linking
employee health to increased corporate value and fostering a corporate culture characterized by unified efforts
across the Company. This project is spearheaded bymembers of the Health Management Division, Personnel
Division, divisions related to MARUI GROUP’s healthinsurance union, and the Advisory Board to enhance theGroup’s healthcare management activities.

Resilience Program for Improving AwarenessBeginning with Senior Management
The understanding of senior management is necessary toenable employees to become more energized and motivated in their work. MARUI GROUP has implemented the
Resilience Program to encourage members of senior
management to develop lifestyle patterns that increase
Two Types of Healthcare Management+

High energy

Proactive
More energized andproductive
than previously

0

Not ill

Preventive
In need of preventive activities andquick response measures to reduce risks–

28

MARUI GROUP’s Healthcare Management
MARUI GROUP aims to prevent health issues in employees
while also energizing employees and motivating them intheir work.

their energy with regard to their body (with a focus on diet,exercise, and sleep habits), mood, mental state, and thinking. In addition, evaluations are conducted through feedback from the participants, their subordinates, and theirfamily to analyze data on the participants’ own energy
levels and their influence on others.

Healthcare Management Project Team Comprising
Employee Volunteers
One of MARUI GROUP’s three official Groupwide project
teams, the Healthcare Management Project Team waslaunched in November 2016 to encourage employees tothink through the lens of health and act accordingly in order
to become more energized and deliver their best possible
performance. Members are recruited through open application from among all Group employees. The selected members learn about an approach to healthcare managementthat is unique to MARUI GROUP over the course of a year.
Message from an Employee

I am currently a member of the
Healthcare Management ProjectTeam. As participation is voluntary,
all members are very passionate
about the project team’s activities. I
could feel our growth as we became
more autonomous in thought andaction. I hope to help employees
Mari Shiraiwa
Healthcare Management Project Teamthroughout the Group feel moreenergized in their work by transmit- Sales Promotion Division
Commercial Facility andting what I learned to my workplace Advertisement Department
AIM CREATE CO., LTD.
and by supporting future project
team members to further entrenchhealthcare management practices.

Perspective of Investors
A company’s approach toward evaluating and tracking
human resource investments is an important indicator ofthat company’s ability to execute strategies.

Monitoring of Investments for Recruiting andDeveloping Human Resources
Recognizing that human resources are the greatest driverbehind the creation of corporate value, MARUI GROUP
conducts investments in the recruitment and development of human resources. These investments are forecast to total ¥670 million in the fiscal year ending March
31, 2018, an increase of 40% year on year.
Human Resource Investments (Forecasts for FY2018)
Recruitment and otherhuman resource
development expenses¥170 million
Training center
expenses

Up 40%
year on year

¥80 million

Personnel expenses
incurred during
training¥250 million

External training
and education
expenses¥170 million

Future Leader Development Program
The Co-Creation Management
Academy is one facet of theCompany’s succession plan.
Participants in this program
are submitted to a one-yeartraining curriculum developed under the guidance of
Mikiharu Noma, Associate Professer at the Graduate
School of International Corporate Strategy of
Hitotsubashi University and external directors to instill inthem a management perspective. Each year, around 20
candidates are selected from among volunteer applications. The goal of the Co-Creation Management Academy
is to continuously cultivate the future leaders that will
support MARUI GROUP’s management going forward.

MARUI GROUP’s Response
We conduct proactive investments in recruiting anddeveloping human resources as we recognize them as thegreatest driver behind the creation of corporate value.

Medium-Term Management Visionary Committee
The Medium-Term
Management Visionary
Committee is a forum fordiscussing various topics
that will be important to the
future of Group management. Meetings of this committee
are convened almost every month and are focused onthemes based on a medium-term perspective that looks
three-to-five years down the line. At meetings, active discussion is conducted among the some 320 members thatare selected from the approximately 1,000 applications
received for each meeting. Furthermore, we regularly invite
outside lecturers to conduct special lectures.

Internships for Recruiting Promising Future Employees
MARUI GROUP is ramping
up its internship programs,
which are aimed at recruitingpromising future employeesthat are receptive toward theCompany’s corporate philosophy. Valuing opportunities tointeract with diverse students interested in retailing as wellas in finance, IT, technology, and other areas, we have organized internship programs that enable interns to experience
the breadth of MARUI GROUP’s wide-ranging operations.
In the fiscal year ending March 31, 2018, we will holdinternship programs spanning a total of 70 days. The
number of participants is expected to reach 480.
www.0101maruigroup.co.jp/recruit/internship/ (Japanese only)www.0101maruigroup.co.jp/recruit/2018newgraduate/guideline/seminar.html(Japanese only)

29Dialogue 03

Diversity and Profession Changes for Breaking
Away from Identity Formed by Past Successes

Dialogue 03

Diversity Cultivating Innovation      
Many of MARUI GROUP’s employees have experienced various professions.
As these employees undergo successive relocations among Group companies,
MARUI GROUP moves closer to becoming a “multi-career” organization in which diverse work experiences
are made available within a single conglomerate.
This is one of MARUI GROUP’s approaches toward promoting diversity, the aim ofwhich is to bring greater joy to customers. Innovation expert Akie Iriyama was invited to discuss
MARUI GROUP’s view of diversity with External Director Etsuko Okajima and President Hiroshi Aoi.

Etsuko Okajima

Akie Iriyama

Hiroshi Aoi

External Director
MARUI GROUP CO., LTD.

Associate Professor
Graduate School of Business and FinanceWaseda University

President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.

    
Aoi: I would like to explain the background that led to ourdecision to promote diversity and workplace inclusion.
Over the period from the late 1980s to the collapse ofJapan’s bubble economy, MARUI GROUP found its business to be a perfect match for the operating environment, and we were thus able to accrue massive successover a short period of time. After the bubble collapsed,
however, we suffered a period of extreme stagnancy.
Our past successes had solidified the concepts ofyounger generations, fashion, and credit cards asaspects of MARUI GROUP’s identity, and we thus foundourselves unable to break away from this identity tocreate new innovation. We had around 30 stores at thattime. By undertaking a drastic transformation in ourbusiness model, we had been successful in changing thelineups and customer service approach of sundry item
sales floors in areas relatively close to entrances. For
some reason, however, we were unable to make similarchanges to the menswear, children’s clothing, and sporting goods sales floors on upper levels of stores. Upon
examining this inability, we realized that the sales floors
in which we failed to implement changes were also
dealing in items that we saw as areas of strength for
MARUI GROUP, areas to which sales representatives had
devoted themselves for decades. Sundry item sales
floors, meanwhile, were where new employees werepositioned, meaning the staff of these sales floors
changed frequently. We thus had to realize that working
in the same place for a long time can cause one’s past
successes to become a part of their identity. If we were to
introduce a system that allowed employees to move

between all sales floors with the same conditions, theorganization should become a more fertile ground forinnovation. This thought was what led us to introduce theprofession change system, which we see as contributing
to workplace diversity.
Okajima: Five years have passed since the introduction of
the profession change system, and, to date, 34% of theGroup’s employees have taken advantage of this system.
When the system was first introduced, there were those
who expressed concern that relocation to a new division,
where they lacked experience or insight, would result in
lower results on their performance evaluations.
Aoi: Employees were worried at first, some feeling as
though the system was a rejection of their career up tothat point. However, when people got used to the system,
they began to see that their past experience would
indeed be beneficial at new workplaces. When this realization spread, employees started to feel that they might
be more likely to miss out on opportunities by not undergoing profession changes.
Iriyama: I assume that new workplaces are not chosen at
random. Do you ever assign employees to posts that are
drastically different from their previous position? Can
you think of any examples of employees undergoing suchdrastic position changes?
Aoi: Recently, we reallocated the responsibilities of two
managing executive officers. One was responsible forretailing operations while the other handled finance
operations. These roles were reversed.
Iriyama: That was a very bold decision. A swap in positions between individuals respectively responsible forretailing and credit cards is an intriguing development.
I have no doubt that it will prove beneficial.

New innovations and ideas
are created throughcombinations of knowledge.
Akie Iriyama

30

31

Dialogue 03
The interesting thing about
MARUI GROUP employees is how
they view their position as lessa job and more of a membership.
Etsuko Okajima

Okajima: Even if one’s position or role is reversed,
people at MARUI GROUP seem to have no problem
accepting their new role as their mission. I think thisstems from the principle of and desire to serve the customer, which is so entrenched within the organization.

Active Mission Rather Than Passive Business Model
Innovation Created Through Combinationsof Knowledge    
Iriyama: A diverse range of employees is vital to innovation as doing something new is the essence of innovation.
New innovations and ideas are created through combinations of knowledge. In other words, fresh combinations ofknowledge that had previously been seen as unrelated
give rise to new ideas. Moreover, there is a limit to a rangeof things that one person can perceive. If one works in thesame industry, or in the same place, decade after decade,they will start to lose sight of things unrelated to theirposition, and no new combinations of knowledge will beborn. Making new combinations requires that individuals
seek out fresh knowledge in areas removed from thefamiliar. The fastest way to facilitate new combinations is
to assemble individuals with differing insight, experience,and values within a single organization. Another consideration is the diversity of individual talents, or intrapersonal
diversity. Looking at Ms. Okajima and myself, for example,
we can both, essentially, be seen as contributing to diversity because putting us together will result in new combinations of knowledge. Similarly, if one person has adiverse career background consisting of multiple different
positions, that person can produce new combinations ofknowledge on their own. In this manner, I understand thegoal of promoting diversity as facilitating innovation.
Okajima: In the same vein as what you said, MARUIGROUP’s profession change system is an importantmeans of increasing intrapersonal diversity. This system
has expanded the range of subjects on which theCompany’s employees are versed, which proves beneficial when engaging in co-creation with customers.
Aoi: I thought the same thing four years ago, when we
joined hands with Ms. Okajima and stepped up our efforts
to promote diversity by empowering female employees.
Gender diversity is, of course, important. However, I feltthat there was a need to look further into this subject inorder to help individuals develop varied careers andviewpoints to facilitate innovation. When I explained this32

to Ms. Okajima, she stated that what I spoke of was “thediversity of individual talents.” Accordingly, MARUIGROUP is currently promoting diversity in terms of
employee gender, age, and individual talents.
Iriyama: Intrapersonal diversity brings with it additional
benefits. When a person with a diverse career background becomes receptive toward the diversity of othersin light of their own diverse background, they will
become more inclusive. At the same time, prosocial
motivation makes it easier to adopt other viewpoints,
which in turn contributes to increased creativity.
Aoi: Given the fact that our business operates in theretailing and service industries, a lot of our employees
are very social. Moreover, many of them find motivationin bringing joy to others and are gifted with a strong
sense of empathy and a proficiency in understanding
others. For this reason, they are compelled to place thecustomer’s feelings before their own.
Okajima: The idea of cooperating with and considering
the feelings of customers are common sentiments heldby everyone at MARUI GROUP. Bearing similar sentiments, higher ranked employees are committed to supporting younger employees who are ambitious towardforming their plans and endorsing ideas that are beneficial to customers. This receptiveness and ability to thinkof others that is present in MARUI GROUP employees isa result of customers being positioned as the point oforigin for the Company’s entire business.
Aoi: Utilizing the sensibilities and ideas of younger
employees requires that the Company feature a diverse
range of age groups. If we are to help younger employees
excel at the forefront of operations, the members ofmanagement who used to stand above them and issueorders will have to sit back in a more supporting role forthese employees. I was initially concerned about whether
or not this role reversal would be successful. However, as
Ms. Okajima said, those of us at MARUI GROUP havealways been devoted to cultivating people and are
therefore happy to play a supportive role. The transition
was smooth as a result.

    
Okajima: The interesting thing about MARUI GROUP
employees is how they view their position as less a job andmore of a membership. What I mean to say is that, rather
than seeing themselves as engaged in the “job” of fashion
or of sales, employees at MARUI GROUP want to work at
the Company and provide value to customers, making
them feel affiliated with MARUI GROUP as members. At the
moment, the amount of floor space at Marui stores devoted
to fashion has been reduced to less than 30%. Regardless,we have not seen any employees leave their position
because they were committed to working in fashion.
Aoi: Changing a business model is something that can bedone with a little effort. However, as it is people who
utilize this business model to create value, this change
will be pointless if we cannot get people behind it. At thetime when we were still clinging to a sense of identity
formed by past successes, there were many people whojoined MARUI GROUP out of a love of fashion. Still,
I have heard stories of such people reflecting on why
they joined finding that, while fashion was the initial
reason, their source of motivation later became thememory of a “thank you” received from a certain customer they served or the bouquet they received when
undergoing relocation. These sentiments are fueled by adesire to help customers or to tackle challenges in order
to become more capable at serving. Discussion on thesesubjects brought us to the business model we have today.
Iriyama: In management theory, we speak of the conceptof sensemaking, which is the process of giving meaning
to experiences. One method of sensemaking is formulating a long-term vision to clearly define the purpose of thecompany, crafting a narrative around this vision thatgives meaning to all employees. Without this type ofsensemaking, people will not be motivated to change oract. My understanding is that, when reexamining what
exactly it is that MARUI GROUP offers, the Company
glimpsed a long-term vision. This vision showed that theCompany need not limit itself to fashion. MARUI GROUP
is not defined by retailing or fashion or credit cards, butrather by its ability to bring joy to customers—not by apassive business model but by an active vision. While thebusiness model, represented by retailing or fashion or
credit cards, may change, the mission of bringing joy tocustomers will remain unchanged.
Aoi: I am often asked whether MARUI GROUP is a retailcompany or a finance company. This question is socommon that we chose to answer it on the cover of
Co-Creation Management Report 2017. The answer is“both.” Today, we do not see ourselves as being bound bya business model.
Okajima: The graduates that will join the Company in the
future will likely only be aware of a limited range of positions. By allowing these individuals to experience various
jobs and positions, they may, for example, discover thatthey have a love of finance.
Iriyama: What you are saying is that MARUI GROUP is
a company that seeks to make its customers smile. It
doesn’t matter what industry it operates in or what products it handles. This is why you were able to enter into
the anime business.
Aoi: When viewed from the outside, our profession
change system may seem like it entails relocations thatare tantamount to moving to a completely different company. However, this system is more designed as a program to allow employees to experience various jobs
while remaining in the safety net provided by being aGroup employee. By enabling employees to experience adiverse range of positions while enjoying the changes
this brings, we aim to stimulate growth, in both people
and the Company, so that we can become more proficient at making customers smile.

Akie Iriyama
Associate Professor
Graduate School of Business and FinanceWaseda University

Akie Iriyama graduated from the Faculty of Economics at Keio University and thenwent on to complete a master’s course in the Graduate School of Economics at thesame university. After working as a consultant to automobile manufacturers anddomestic and overseas governance institutions at Mitsubishi Research Institute,Inc., he received a Ph.D. from the graduate business school of the University ofPittsburgh, in the United States, in 2008, which was also the year he began
serving as an assistant professor at the business school of the State University of
New York at Buffalo. In 2013, Mr. Iriyama became an associate professor at theGraduate School of Business and Finance at Waseda University, specializing instrategic management and international business. Published in 2012 by Eiji Press
Inc., his work Sekai no Keieigakusha wa Ima Nani wo Kangaeteirunoka (“What are
the Manage Theorists of the World Thinking?”) became a best seller. Mr. Iriyama isalso active in other forms of media, including the DIAMOND Harvard Business
Review, which publishes a long-running series of articles entitled Sekai Hyojun no
Keiei Riron (“World-Standard Management Theory”).

33

Dialogue 04

MILLE NNIALS

Dialogue 04

Millennials Slated to Drive the Future of MARUI GROUP
Winning Customer Favor
as Key to Future GrowthEstablishment of Inclusionas the New Standard

Entry into the Businessof Inclusion

Job-Hunting Students Included
Among Stakeholders

Bright and Fulfilling Futureat Home and at Work

Unique Corporate Culture
Motivating Young Employees

Markets are shrinking in Japan as thebirthrate declines and the population
ages. For this reason, inclusion initiatives
targeting all customers are in line withthe direction Japan itself will need tohead in the future. These initiatives will
therefore be key to the future growth of
MARUI GROUP. Winning the favor of awide range of customers will no doubt
create results in the form of earnings.
I hope to help MARUI GROUP in winning
this favor by thinking about what we cando to aid customers and society, without
being bound by existing frameworks, sothat the Company can earn greater
praise from society.

When I was in university, I had many
opportunities to interact with differently
abled individuals. These interactions mademe doubt the validity of the establishedsocial dichotomy that divides people into
the supported and the supporters. The
concept of inclusion, I believe, can help us
establish a new standard of including
those who had previously been left behindas they are. MARUI GROUP’s idea of
co-creation management, which seeks toexpand the intersection between theinterests of stakeholders, is revolutionary. This approach gives MARUI GROUP,
a single company, the potential tochange all of society.

MARUI GROUP’s inclusion initiatives
really resonate with me. In university,
I studied base of the economic pyramidbusinesses. During my studies, I learned
about Unilever, a company that makes abusiness of providing soap to people
around the world. I thus realized that
inclusion is not just social contribution;
it is a viable business concept, a conceptthat will be crucial to the future growthof Japan. I hope that MARUI GROUP’s
inclusion initiatives will spread to othercompanies and throughout society, oreven that the Company will come to leadall of Japan on this front.

I was moved by the idea of co-creation
management, which entails creating
together with all stakeholders from theperspective of inclusion. When job
hunting, most companies only supplied
me with simple booklets containing
information selected specifically for job
hunters. MARUI GROUP, however,provided me with its co-creation
management reports and co-creation
sustainability reports. It was then that
I realized how the Company sees us
job-hunting students as included among
stakeholders alongside investors andshareholders. MARUI GROUP was thefirst company to exhibit this sentiment.

I felt an attachment to MARUI GROUP
when I heard of how the Company was
promoting customer diversity with afocus on age, gender, and physicalcharacteristics. Such initiatives are rareamong Japanese companies. I found it
most appealing how business initiatives
are shaped based on meetings withcustomers and how employees strive tobring joy to customers. At MARUIGROUP, I hope to continue working
vigorously, eventually getting married,
having kids, and growing into the type of
person my kids can be proud of. I see
such a bright and fulfilling future for me
at MARUI GROUP.

During my internship at MARUI GROUP,
I toured the head office as well as distribution centers located outside of Tokyo.
There, I saw the Company’s corporate
philosophy of “continue evolving to betteraid our customers” as a shared sentiment
held by employees of all ages. I was also
impressed with the Medium-Term
Management Visionary Committee andother official project teams. Based onvoluntary participation, these bodies werevenues for growth and for dialogue withmanagement. All of these are aspects of
MARUI GROUP’s unique corporate
culture that contribute to the motivation ofyoung employees.

34

Nozomu Inose

Kana Hase

Akiya Hamatsu

Karin Sugie

Eri Ichikawa

Kei Sato

Educational background:Sports and wellness

Educational background:
Communications and media studies

Educational background:
Humanities and social sciences

Educational background:
Earth and planetary sciences

Educational background:
Cultural and creative studies

Educational background:
Cross-cultural studies

35

Dialogue 04

Reason for Joining MARUI GROUP    
Sato: During my internship, I learned that MARUI GROUP
was more than just a retailer; it also utilized IT to conductcredit card and omni-channel retailing operations. I therefore thought that MARUI GROUP would be a place atwhich I could grow by experiencing various positions as
I develop my career. This is why I decided to join.
Hase: I had previously shopped at Marui stores andbought their private brand products. I was surprised tolearn of the Company’s unique business model andcorporate philosophy. My reason for joining was how theunderlying principle of aiding customers is treasured in
all of MARUI GROUP’s varied and differing businesses.
I sensed an unwavering resolve in this commitment.
Hamatsu: I was, of course, convinced by MARUIGROUP’s corporate philosophy and job description.
However, the main reason I decided to join was simply
that all of the employees were people I wanted to workwith. During my internship, I felt that they were earnest in
their approach to us students, looking to ascertain our
individual qualities. The idea of finding a position thatsuits me through the profession change system andcontinuing to grow there was also highly appealing.
Sugie: I too felt that MARUI GROUP looked at us students as individuals, and it seemed like they chose who
to hire based on who they truly wanted to work with. I
liked how they positively evaluate people who are proactive. The fact that the Company values diversity is apparent. The importance placed on engagement is also

36

obvious. I thus joined because I felt like I could work here
while being myself.
Ichikawa: During my internship and at discussion
forums, I was able to interact with several MARUIGROUP employees, making me want to work with them.
I was also attracted to MARUI GROUP’s focus on serving
customers and how the Company evolves its business
together with the changing times.
Inose: I think MARUI GROUP is unique in the breadth ofits business and the amount of importance it places on
evolution and growth. I plan to go all out no matter whichof the Company’s businesses I find myself in, whether
they be operated by Epos Card, AIM CREATE, MOVING,
or another company, and to pursue unrelenting personal
growth. I believe that no company will be more suited to
my growth over the coming decades than MARUI GROUP.

Ambitions to Be Pursued at MARUI GROUP    
Hamatsu: MARUI GROUP is transitioning its stores
toward a shopping center model that generates realestate revenues. I believe this makes it so that theCompany’s business partners are also its customers.
When thinking of how to help partners succeed in theirbusiness, I came to the realization that shopping center
Marui stores need to offer more than just convenience;
they must be able to provide more appealing value.
I hope to get involved with people outside of MARUIGROUP as I work to serve customers.

Ichikawa: In addition to retailing, MARUI GROUP is also
engaged in credit card and various other operations.
I want to make as many people as possible aware of thisfact. I also think that the try-on store scheme used with
Rakuchin Kirei series of shoes is an amazing system.
I hope to help spread this system throughout Japan.
Sato: I hope to spread the word about the wide range ofsizes Rakuchin Kirei series of shoes and other products
are available in, not just to Japanese people, but also to
non-Japanese people and people visiting Japan. Also, I
know a lot of people who do not realize that EPOS cards
belong to MARUI GROUP. I hope to teach such people
more about the Company.
Inose: MARUI GROUP has a corporate philosophy
based on aiding customers as well as a wide-ranging
business. I hope to further develop MARUI GROUP intoa unique entity that earns society’s praise by advancing
the type of initiatives that only MARUI GROUP can.
Rather than being satisfied with simply finding a job,
I will strive to continue evolving. I am well aware of theimportance of linking my own evolution to the evolutionof MARUI GROUP.
Hase: MARUI GROUP is advancing a wide variety of
unique and inclusive initiatives. I hope that such initiatives will become a common fixture in society in the
future. Right now, MARUI GROUP’s business is centeredon the Retailing business and the FinTech business, but
this too will likely change going forward. It is my goal to
make MARUI GROUP into a company that people are
happy to have around, no matter how society changes,
by helping the Company implement various initiatives forserving customers.
Sugie: I am confident that MARUI GROUP’s inclusion
initiatives will become commonplace in society in the
future. The coming era will be one in which businesses
actively seek to include those who have previously been
excluded. I hope that my generation will grow MARUIGROUP into a company that others continue to follow inthis coming era of inclusion. I may have overspecialized
during my university years, but I now feel like I have
limitless potential. I plan to tackle all challenges head on
going forward.

Maho Yamada
Educational background: Frontier media science

Enjoyment of Changes and Differences Experienced
in Various Positions
My background is in mathematics, but the part-time job I started
in my sophomore year of university taught me the joy of providing customer service face-to-face, making me want to get a sales
job that is closely linked to customers. Realizing that MARUIGROUP was the most devoted to its customers, I chose to join
the Company. MARUI GROUP offers various positions. I therefore hope to enjoy changes and differences as I experience
positions that are suited to me.

Yuto Takeuchi
Educational background: Political science

Drive to Aid Customers from the Perspective of Inclusion
When I first started job hunting, I read MARUI GROUP’s
Co-Creation Sustainability Report 2016. I felt an immediateconnection with the Company when I read the discussion
between President Aoi, a differently abled individual, and atransgender person. Sensing that the concept of inclusion wasentrenched throughout the Company, I decided to join. I had
hoped to work at a company like MARUI GROUP, and soon it
became the sole target of my job hunt. I feel incredibly motivatedby being able to work in an environment that lets me search forways to better aid customers from various perspectives.

Akari Misu
Educational background: Social services

Spread of Inclusive Values throughout Society
It was the appeal of MARUI GROUP’s management stance ofvaluing all customers that inspired me to join the Company. I wasparticularly struck by the inclusive approach toward management
demonstrated by initiatives at Hakata Marui based on input fromdifferently abled individuals as well as the suit try-on event held
for members of the LGBT community. MARUI GROUP does notsee differently abled individuals and members of the LGBT
community as the targets of volunteer activities or support drives,
but rather treats them as regular customers. I think this approach
will contribute to an inclusive society. I want to be in the businessof spreading such inclusive values throughout society.

37

Sustainability Management

MARUI GROUP’s Four Core Themes

Process for Deciding Core Themes

In November 2016, MARUI GROUP defined four core themes related to inclusion to guide it in its quest to help build
a flourishing and inclusive society that offers happiness to all. Inclusion entails including and reaching out to all those
who have previously been excluded, and this concept is congruent with the direction set by the principles of the United
Nations Sustainable Development Goals (SDGs). Accordingly, MARUI GROUP aims to make proactive contributions to
the accomplishment of these goals through co-creation with all of its stakeholders.

Core Theme

STEP 1

Stakeholder Engagement

STEP 2

In identifying the expectations for MARUI GROUP as well as the themes it should prioritize, we
held meetings with long-term investors, ESG-minded investors, sustainability experts, nonprofit
organizations, and other stakeholders in the greater society as well as with customers, business
partners, and Group officers and employees.

Identification and Organization of Social Issues

1

STEP 3

STEP 4

Customer Diversity and Inclusion

Management-Level Discussions and Decisions

We will seek to develop products, services, and stores that bring joy to all
customers, regardless of their age, gender, or physical characteristics.

Core Theme

At meetings of a committee headed by the president, a series of discussions were held among
the relevant officers and divisions to decide four core themes pertaining to inclusion.
Responsibility for these themes was assigned to the Sustainability Department and the ESG
Promotion Department, and the themes themselves were disclosed in Co-Creation
Sustainability Report 2016 and in the sustainability section of MARUI GROUP’s website.

2

Verification of Activities and Quantification of Results
Activities are verified at least once a year as we continuously practice engagement with stakeholders. Taking into consideration issues pointed out by stakeholders, we have been preparing
a long-term vision based on the four core themes and are examining possible key performanceindicators that can be disclosed with regard to those themes for which targets can be set.

Workplace Inclusion
Based on MARUI GROUP’s corporate philosophy of striving to “continue
evolving to better aid our customers” and “equate the development of ourpeople with the development of our company,” we will provide all employees with venues through which they can excel.

Ecological Inclusion

Core Theme

4

Material

We will develop eco-friendly businesses that are considerate of natural
capital and propose ecologically sound lifestyles that are in harmony withnature and the environment.

Materiality for Stakeholders

3

Major Initiative MatrixInclusive productdevelopment

Financial inclusion

Reduction initiatives
related to private brandproducts

Inclusive store
development

 ultivation ofCfuture leaders ealthcare management
H
underpinning personal
growth evelopment of anDorganization that utilizes
diversity

Responsible procurement activities withbusiness partners

 o-creation withC
stakeholders

Revolutionary services
contributing to reduced
environmental impacts

 uman resourceH
investments for new
growthRisk management

Groupwide environmental impact reduction
initiatives

Highly materialCore Theme

With a focus on co-creation management; the impact of this co-creation management on theeconomy, society, and the environment; and its relationship with our medium-term management
plans and human resource strategies, we identified and organized the issues facing society
while referencing internal and external guidelines, such as those of ESG-rating institutions, theGlobal Reporting Initiative, ISO 26000, the Sustainability Accounting Standards Board, and theInternational Integrated Reporting Council, along with the SDGs.

Sustainability
management

Co-Creation Corporate Governance
We will develop management frameworks that include stakeholders inorder to achieve harmony between the interests and the happiness ofall stakeholders.

Material

Materiality for MARUI GROUP
C ustomer Diversity and Inclusion

38

Highly material

Workplace InclusionE cological Inclusion

Co-Creation Corporate Governance39

1

Sustainability Management

Core Theme

Core Theme

Customer Diversity and Inclusion

2

Workplace Inclusion

MARUI GROUP’s Vision

MARUI GROUP’s Vision

We will seek to develop products, services, and stores that bring joy to all customers, regardless of their age, gender,or physical characteristics.

Based on MARUI GROUP’s corporate philosophy of striving to “continue evolving to better aid our customers” and“equate the development of our people with the development of our company,” we will provide all employees withvenues through which they can excel.

Major Initiatives

Major Initiatives

Inclusive store development

With eyes to the year of the Tokyo 2020 Olympic and Paralympic Games, we are developing
stores that are comfortable in terms of both facilities and customer service to provide enjoyable
shopping experiences to all customers, including senior citizens, differently abled individuals,
non-Japanese people, and members of the LGBT community, regardless of age or gender.

Development of an organization thatutilizes diversity

Each of MARUI GROUP’s approximately 6,000 employees is different. We believe that innovation
is assured when these employees are accepting of the differences in others and are able to unitewith an eye toward social change and demand. We are therefore promoting diversity with regard
to individual talents, gender, and age.

Inclusive product development

MARUI GROUP views product creation as the process of developing products that match thephysical characteristics of customers. We are thus establishing development and sales frameworks for supplying products that benefit all customers, excluding no one regardless of their
physical characteristics. We thereby seek to create new demand.

Healthcare management underpinningpersonal growth

MARUI GROUP focuses on preventive healthcare management aimed at avoiding illness andalso proactive healthcare management for energizing and motivating employees. We thus
encourage employees to change their attitudes and behaviors to further improve corporate value
and contribute to society through higher productivity.

Financial inclusion

MARUI GROUP sees its mission as being to promote financial inclusion by supplying financial
services to everyone. Accordingly, we strive to provide financial services that enrich the lifestylesof everyone, particularly the youths and young adults for whom existing financial services lie outof reach.

Investments in human resources tostimulate new growth

Recognizing that human resources devoted to aiding customers are the greatest driver behindthe creation of corporate value, MARUI GROUP respects diverse employee values and is pro­actively conducting investments in the recruitment and development of human resources tocultivate an environment in which all employees can feel energized and continue growing.

Please refer to the sustainability section of MARUI GROUP’s website for more information.

www.0101maruigroup.co.jp/en/sustainability/theme01/

Please refer to the sustainability section of MARUI GROUP’s website for more information.

Principal Data

www.0101maruigroup.co.jp/en/sustainability/theme02/

Principal Data
2013

2014

2015

2016

2017

—

—

—

341,478

326,327

Number of visiting customers (thousands)

184,620

186,030

186,650

195,560

207,100

Number of female employees

2,703

2,655

2,641

2,685

2,584

Number of purchases (thousands)

76,76080,15083,48091,72090,610

Number of male employees

3,398

3,311

3,277

3,214

3,148

Number of MARUI GROUP e-commerce site
visits (thousands)

88,12092,19093,22099,690112,480

Average age of employees

Sales of Rakuchin Kirei series shoes(millions of yen)

2,700

3,600

4,500

4,700

400

430

460

Aggregate number of employees (tenants)that have undergone LGBT manner training——

Number of employees (tenants) that have taken therank 3 Universal Manner Placement Examination—

FinTech business transactions (millions of yen)
EPOS cardholders (of whom new) (thousands)

Fiscal year ended March 31 or as of March 31

Retailing business transactions (millions of yen)

Number of employees with Service Care-Fitter
qualifications*1

Fiscal year ended March 31 or as of March 31

Total number of employees

2013

2014

2015

2016

2017

6,101

5,966

5,918

5,899

5,732

39.7

40.4

40.9

41.2

42.0

Average annual overtime hours per person

35

40

44

46

44

5,200

Ratio of employees changing positions between
Group companies (%)*1

—

8

18

25

34

540

568

Employees working shortened hours forchildbirth or childcare reasons (male and female)

266

312

345

416

473

—

75

500 (28)

Ratio of female employees returning to work fulltime after taking childcare leave (%)

45

36

55

66

81

—

—

309

1,249 (4)

14

54

66

94

—

—

1,473,539

1,723,254

Ratio of applicable male employees taking
childcare leave (%)

0—

Ratio of differently abled employees (%)*2

2.01

2.06

2.12

2.08

2.16

Employees injured by occupational accidents

117

74

87

100

76

2.8

2.3

2.0

1.6

2.6

—

—

—

—

474

4,980 (720)

5,420 (710)

5,910 (730)

6,130 (730)

6,360 (740)

Ratio of EPOS cardholders aged 18–39 (%)

61.8

58.8

56.5

54.0

52.0

Income per card of EPOS cards (yen)*2

4,100

4,400

5,400

5,900

6,500

Employee turnover rate
(excluding mandatory retirement) (%)

Ratio of active EPOS card users (%)

65.1

65.4

62.9

63.7

65.3

Human resource investments (millions of yen)*

Ratio of delinquent debt for EPOS cards (%)

2.32

1.84

1.68

1.57

1.45

www.0101maruigroup.co.jp/en/sustainability/lib/databook.html
Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.
*1 Aggregate total of position changes in April and October of each year (only April for 2017), excluding officers and managers*2 As of June 1 of each year
*3 Human resource investments of ¥670 million projected for the fiscal year ending March 31, 2018

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.
*1 Based on employees as of April 1 of each year
*2 FinTech business operating income ÷ Active cardholders

40

www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

3

41

3

Sustainability Management

Core Theme

Core Theme 3

Tracking of Environmental Footprint across the Value Chain

Ecological Inclusion

MARUI GROUP views all of its business assets as being borrowed from society, and is therefore promoting
eco-friendly business activities through means such as combating climate change and preventing pollution ina concerted Groupwide effort. In addition, we recognize our responsibility as a producer to track our environmental footprint across the entire value chain, from the procurement of raw materials and product creation to
the sale and disposal of products.
Scope 3 Emissions Data (Fiscal Year Ended March 31, 2017)MARUI GROUP’s Vision

Raw material
procurement

Integrated Group efforts to reduce environmental footprint

MARUI GROUP views all of its business assets as being borrowed from society. Based on thisbelief, all Group employees practice autonomy in expanding the scope of our socially beneficial
activities and proposing fulfilling lifestyles steeped in the unique characteristics of MARUIGROUP. This objective is to be accomplished while advancing eco-friendly business activities.

Reduction initiatives related to private brandproducts

MARUI GROUP is addressing social issues by expanding its reuse initiatives, which include
allowing customers to trade in products they no longer use for resale, and its reduction
initiatives, which include reducing waste by preventing the creation of products that go unused
due to not meeting customer needs.

Responsible procurement activities withbusiness partners

MARUI GROUP recognizes that it has responsibilities as producer that span the entire value
chain, which encompasses everything from raw material procurement through to productcreation, sales, and disposal. Through co-creation with stakeholders, we strive to contribute to
local communities while also going further to address human rights issues and improve work
environments across the value chain.

Innovative services for reducing
environmental impacts

MARUI GROUP shall utilize its unique platform, which combines its strengths in IT and logistics,
in its Retailing and FinTech businesses to develop innovative services that deliver new forms of
convenience, addressing social change and customer needs while also reducing environmental
impacts.
www.0101maruigroup.co.jp/en/sustainability/theme03/

Principal Data
2013

2014

2015

2016

2017

Greenhouse gas emissions (Scope 1) (t-CO2)

10,727

13,044

12,58014,434

14,920

Greenhouse gas emissions (Scope 2) (t-CO2)

76,039106,085

98,637

89,179103,264

Greenhouse gas emissions (Scope 3) (t-CO2)—

550,612530,595

509,070

489,439

Greenhouse gas emissions per unit
(per unit of operating income)

—

24.7

22.9

20.7

19.4

1,998,182

2,525,815

2,350,595

2,305,099

2,341,454

0

0

78

387

386

Total waste (tons)

13,24013,62013,39012,90015,039Waste recycled (tons)

7,950

7,860

7,840

7,700

8,839

Fiscal year ended March 31 or as of March 31

Energy consumption (GJ)
Total amount of renewable energy purchased or
generated (thousands of kWh)Post-Purchase Emissions
Scope 3: 150,000 t-CO2

Total Greenhouse
Gas Emissions acrossthe Supply Chain
600,000 t-CO2

Major Initiatives

Please refer to the sustainability section of MARUI GROUP’s website for more information.

Emissions by MARUIGROUP Scope 1 & 2:
110,000 t-CO2

Emissions from Procurement to Delivery
Scope 3: 340,000 t-CO2

We will develop eco-friendly businesses that are considerate of natural capital and propose ecologically soundlifestyles that are in harmony with nature and the environment.

Product
production

ProductdeliverySales
in stores

Customertransportation

Product use andrecycling

The Company calculates emissions volumes based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain,released by the Ministry of the Environment and the Ministry of Economy, Trade and Industry. The results of Scope 3 emissions calculations have been
confirmed by Mizuho Information & Research Institute, Inc.
Scope 3 Emissions Data
www.0101maruigroup.co.jp/en/sustainability/theme03/environment_01.html

Four Consecutive Years of Reductions in CO2
and Other Greenhouse Gas Emissions
The Company has traditionally calculated emissions of CO2
and other greenhouse gases based on Scope 1 and Scope
2 of the Greenhouse Gas Protocol, and it began calculating
emissions under Scope 3 during the fiscal year ended
March 31, 2014. We are thereby able to track environmental impacts across the entire value chain, including direct
and indirect emissions from MARUI GROUP (Scope 1 andScope 2) as well as emissions from raw material procurement, transportation, and products purchased by customers. Through this type of traceability that spans the entire
value chain, we are advancing initiatives for reducing
environmental impacts together with customers, business
partners, communities, and society as a whole. These
initiatives have helped us achieve four consecutive years of
reductions in CO2 and other greenhouse gas emissions.
FY2014660,000 t-CO2

FY2015640,000 t-CO2

FY2016610,000 t-CO2

FY2017600,000 t-CO2

Third-Party Verification for CO2 and Other Greenhouse
Gas Emissions
In order to improve the reliability of the environmental
information it discloses, MARUI GROUP began receiving
third-party verification for its CO2 and other greenhousegas emissions from the Japan Quality Assurance
Organization in the fiscal year ended March 31, 2017.
This verification is received for all 15 categories of emissions applicable under Scope 1, Scope 2, and Scope 3.

Ratio of waste recycled (%)

60

58

59

60

59

Waste sent to landfills (tons)

5,290

5,760

5,550

5,200

6,200

Report Name
Greenhouse Gas Emissions Verification Report

Business partners engaged in
CSR procurement initiatives

Scope 3 490,000 t-CO2 80.5%
Emissions from raw material procurement, transportation, andproducts purchased by customers

—

—

—

—

20

Scope 2 100,000 t-CO2 17.0%
Emissions from operation of MARUI GROUP’s stores and offices

Product carbon footprint

1

1

1

1

8

Third-Party Verification Institution
Japan Quality Assurance Organization (JQA)

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.

42

Scope 1 10,000 t-CO2 2.5%
Emissions from transportation by MARUI GROUP vehicles

www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

43

Core Theme 3

Incorporating Reduction into Business Activities

Responsible Procurement Activities with Business Partners

MARUI GROUP is addressing social issues through reuse and reduction initiatives. Our reuse initiatives include
allowing customers to trade in products they no longer use, which are then resold. At the same time, we look to
reduce waste through the development of private brand products that accurately match customer needs.

MARUI GROUP recognizes that it has responsibilities as producer that span the entire value chain, which
encompasses everything from raw material procurement through to product creation, sales, and disposal.
Through co-creation with stakeholders, we strive to contribute to local communities while also going further toaddress human rights issues and improve work environments across the value chain.

Lineup Offering the Perfect Fit for 100% of Foot Sizes
MARUI GROUP views product creation as the act ofmaking products that match
the physical characteristics ofindividual customers. We
facilitate these efforts bycreating products together with customers and asking
them directly about their concerns and needs. Through thisengagement, it was brought to our attention how many
shoes are thrown away because of comfort or size issues
that become apparent after their purchase. MARUI GROUP
sought to rectify this issue by improving the comfort ofshoes and expanding the range of available sizes to cover
100% of customer foot sizes. We were thus led to create
the Rakuchin Kirei series of shoes, which have sold morethan 3.5 million pairs by bringing joy to all customers. In
this manner, we endeavor to reduce waste by proposing
products that perfectly match every customer.
To quantify the results of our activities in this area, wehave identified the portion of sales accounted for by products that perfectly match customers as a key performanceindicator, and we are currently in the process of formulatinga target for this indicator to be accomplished by 2030. The
Company plans to disclose more detailed information on thismatter in the fiscal year ending March 31, 2019.

On-site Meetings with Business Partners
In 2016, we established the MARUI GROUP Procurement
Policy. A step ahead of the release of this policy, theCompany held an explanatory forum for roughly 100 business partners related to its private brands. At this explanatory forum, we discussed the importance of addressing
human rights, labor, and other issues across the supply
chain, explaining MARUI GROUP’s policies in this regard
while using actual case studies. Business partners participating in the forum expressed their support for our stance.
In 2017, we began conducting surveys and on-site
audits of business partners to inspect their initiatives inrelation to the supply and procurement of safe andvoi.0101.co.jp/voi/webshop/customer_portal/index.jsp (Japanese only)

Try-on Store Scheme Supporting Reduction Initiatives
Try-on stores represent a new sales floor scheme thatmerges Internet sales with physical stores. In these stores,
customers can try on samples of all sizes of products andthen make purchases via Internet sales. Benefits of try-on
stores include lower investments in store fixtures and fixed
rent fees than would be required for opening a standard
store. In addition, as only samples are displayed, there isno need for inventories, decreasing the risk of losses oninventory disposal. Furthermore, the reduction in customer
returns and inventories contributes to substantially lower

Number of Clothing Items and Shoes Traded in by Customers

Approx.

5.7million

May 2010­–March 2017

44

Core Theme 3

environmental impacts. This
scheme is complemented by
the distribution centers
supporting our e-commerce
operations, where we haveintroduced the AutoStore
robotic warehouse system in order to heighten efficiency.
This system allows for around 27,000 specialized storage
containers to be arranged in stacks of 12, eliminating
wasted space and tripling warehouse storage efficiency.
Moreover, the task of retrieving products, which was previously carried out by people, is now conducted by robots,
greatly reducing the amount of work needed to be performed by human hands.

trustworthy products
and to human rights
and labor environments. During on-site
audits, dedicated staff
members from theSustainability
Department holdmeetings with business partners to confirm the environmental initiatives conducted at their domestic and overseas
factories as well as their employee labor agreements andother conditions related to occupational health and safety.
www.0101maruigroup.co.jp/en/sustainability/theme03/valuechain.html

www.0101maruigroup.co.jp/en/sustainability/theme03/reduce.html

Proposal of Ecologically Sound Lifestyles
MARUI GROUP’s co-creation activities
with business partners commenced in
2009, and we have been conducting
carbon footprint initiatives, which entail
tracking CO2 emissions across the value
chain, since then to reduce environmental impacts. In the fiscal year ended
March 31, 2017, these initiatives wereapplied to eight product styles­­—seven styles of Rakuchin
Kirei series shoes and one style of Rakuchin Keikai shoes.
Furthermore, MARUI GROUP employs carbon offset
schemes as an ecological action for offsetting emissions of
CO2 and other greenhouse gases that it is unable to reducein its own operations through reductions or the absorptionof emissions elsewhere. Since 2017, we have been deciding the specific venues for carbon offset utilized based on
votes by customers and employees. These activities will be
continued going forward in order to broaden the range ofenvironmental preservation activities carried out throughco-creation with customers.
www.0101maruigroup.co.jp/en/sustainability/theme03/
environment_02.html

Ratio of People Throwing Away Shoes that are No Longer Worn

92%

Based on 2013 survey of EPOS cardholders

Message from a Business Partner

Shogo Fujinaga
Officer
Section 2, Department 2, Business Division 1
TAMURAKOMA & Co., Ltd.
Osaka, Japan

Responsible Procurement Activities Helping to Builda Better Society
We recently visited a factory producing MARUI GROUP
private brand apparel products together with staff from theCompany. On this visit, the first of its kind for us, a meeting
was held during which we discussed such matters as work
environments and procurement conditions. In the past, ourfocus has been ensuring that products can be delivered onschedule. I had not stepped inside a factory, whether inJapan or overseas, or thought about the cultural or historical background that shaped a specific factory. Becoming
more involved in factories has given production activities
a greater degree of transparency and enabled us to better
ensure the safety of products. Our initiatives with MARUIGROUP will no doubt help to build a better society andachieve long-term corporate growth. At TAMURAKOMA, wehope to work together with MARUI GROUP to foster relationships with the factories we use that place us on equal
footing and to spread MARUI GROUP’s concept of cocreation with customers.

Message from a Business Partner

Sungwan Chaisongcam
President
S.K.N TRADING COMPANY LIMITED
Bangkok, Thailand

Employee Unity Realized by Revising Factory
Operating ProceduresSome companies focus only on the samples provided to confirm final products or on the ability to receive products withconsistent quality. MARUI GROUP differs from such companies. I was impressed with how involved MARUI GROUP is in
the manufacturing process pertaining to its Rakuchin Keikai
shoes, offering us guidance on how to perform tests on various
materials and how and where these materials should be procured and other specific matters. This involvement spans allprocesses from initial planning to ordering. We recently had ameeting with MARUI GROUP centered on the importance ofensuring safety and security for employees, which opened myeyes on the topic of making factories more comfortable workplaces for employees. At factories, we have put an end to thepractice of employees relaying orders verbally, requesting thatshared instructions be presented in written form, and we havealso begun thoroughly investigating the cause of mistakes. Our
employees are currently united in working toward a common
goal, minimizing production process mistakes.

45

4

Sustainability Management

Core Theme

Core Theme 4

MARUI GROUP Code of Conduct

Co-Creation Corporate Governance

MARUI GROUP engages in co-creation management with its stakeholders with the aim of contributing to the development of a flourishing and inclusive society that offers happiness to all. The various stakeholders of MARUI GROUP
include customers, shareholders, other investors, communities, the greater society, business partners, and employees.
The happiness to which we seek to contribute can only be realized through co-creation with all of these stakeholders.
It is based on this belief that we promote compliance with laws and regulations as well as international rules and theprinciples embodied in these norms and that we have established and adhere to the MARUI GROUP Code of Conduct.

MARUI GROUP’s Vision

We will develop management frameworks that include stakeholders in order to achieve harmony between theinterests and the happiness of all stakeholders.

Major Initiatives

Co-creation with stakeholders

MARUI GROUP is reinforcing its co-creation management activities through constructive
engagement with stakeholders with the ultimate goal of developing a business that brings joy to
all customers. These initiatives are also aimed at winning the support of employees, customers,
shareholders, other investors, members of communities and society as a whole, and business
partners with regard to our inclusion-oriented activities.

Sustainability management

Through activities centered on the Sustainability Department and the ESG Promotion
Department, we have been verifying initiatives in accordance with the four core themes forsustainability, preparing a long-term vision based on the four core themes, and examining
possible key performance indicators for evaluating sustainability in our businesses.

Cultivation of future leaders

In April 2017, MARUI GROUP launched the Co-Creation Management Academy, a program fordiscovering and cultivating future leaders under the guidance of external directors and the
Graduate School of International Corporate Strategy at Hitotsubashi University. For the first
iteration, 21 participants were chosen from among 134 applicants.

Risk management

Based on sustainability-related trends in the areas of business activities, human rights, and occu­
pational health and safety, we revised the MARUI GROUP Code of Conduct and established the
MARUI GROUP Human Rights Policy and the MARUI GROUP Occupational Health and Safety
Policy in November 2017. The effectiveness of these policies will be evaluated once a year andawareness will be entrenched among all Group employees through training and other activities.

Please refer to the sustainability section of MARUI GROUP’s website for more information.

www.0101maruigroup.co.jp/en/sustainability/theme04/

Principal Data
2013

2014

2015

2016

Directors

7

8

10

6

6

Ratio of independent directors (%)

14

13

20

33

33

Fiscal year ended March 31 or as of March 31

2017

1. Customers 
Customers are the point of departure for all of our businessactivities. Acting in accordance with the corporate philosophyof “continue evolving to better aid our customers,” we will
strive to create products, services, and stores that bring joy to
all customers and can be used safely and with peace of mind.

6. Environmental Preservation 
MARUI GROUP sees all of its business assets as being
borrowed from society. Accordingly, we seek to understandthe impact of our business on the environment in order toreduce the environmental footprint of the entire Group and topromote eco-friendly business activities.

2. Investors We will pursue ongoing growth and medium-to-long-term
improvements in corporate value in order to live up to the
expectations of shareholders and other investors. In addition,
we will disclose information in a timely and appropriatemanner, conduct highly transparent business activities, andprevent insider trading.

7. Respect for Human Rights 
MARUI GROUP endorses international standards regarding
human rights and respects the personalities and individualityof all people. We stand in opposition of all discrimination,
whether on the basis of race, nationality, religion, ideology,
biological sex, age, physical characteristic, gender identity, or
sexual orientation.

3. Communities and Society 
MARUI GROUP’s business activities connect us to various
areas of communities and the greater society. As responsible
members of communities and of society as a whole, we willseek to resolve social and community issues and invigorate
communities and the greater society to transform our main
business into a socially contributing undertaking.

8. Fair and Transparent Transactions 
MARUI GROUP adheres to domestic and overseas ethicalstandards and legal regulations as well as to its own internal
rules as it promotes fair and transparent transactions andcompetition while preventing corrupt and otherwise inappropriate activities (bribery, money laundering, inappropriate
lobbying activities and political contributions, etc.).

4. Business Partners 
MARUI GROUP’s business activities are supported by cocreation activities with business partners in Japan andoverseas. By fostering trusting relationships with partners
through fair and impartial transactions, we will promotemutual prosperity.

9. Elimination of Antisocial Forces 
We will staunchly refuse to have any connection with antisocial forces that threaten the order and safety of society.

5. Employees 
The growth of employees that are committed to helping
others is the source of all the value we create. In addition toproviding employees with a safe and hygienic workplaceenvironment, we will foster a corporate culture that isrespectful of diverse values and in which all employees canfeel energized and continue growing.

10. Protection and Management of Information Assets 
MARUI GROUP’s business activities entail the utilization of
personal information, confidential information, and intellectual properties. These information assets are protected andmanaged based on internal regulations, and we seek to avoid
infringing on the intellectual property rights of others.

Ratio of female directors (%)

0

0

10

17

17

Average age of directors

54

55

54

55

55

Scope of Application and Implementation

Audit & Supervisory Board members

4

4

4

4

4
50

The MARUI GROUP Code of Conduct is applicable to all Group officers and employees.
An internal notification system is in place to quickly uncover and address activities that violate
this code of conduct or activities that are illegal, unfair, or otherwise inappropriate.

Ratio of independent auditors (%)

50

50

50

50

Executive officers

4

5

5

16

16

Ratio of female executive officers (%)

0

0

20.0

12.5

18.8

4.5

5.0

5.2

6.0

6.7

Return on equity (%)

3.0

3.0

3.3

3.3

3.1

48.43

56.29

58.87

70.68

80.24

—

1,297,250

1,469,111

1,703,353

1,933,685

32.0

32.3

31.1

41.1

Return on invested capital (%)
Earnings per share (yen)Total Group transactions (millions of yen)
Payout ratio (%)

31.0

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.

46

Moreover, this code of conduct is reviewed as necessary by the Board of Directors and revised when
deemed prudent through sufficient discussion. Should a serious violation of the MARUI GROUP Code of
Conduct occur, we will take steps to identify the cause of the violation and prevent recurrence.
Established in April 2006
Revised in May 2014
Revised in November 2017www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

47

Core Theme 4

MARUI GROUP Human Rights PolicyCore Theme 4

MARUI GROUP aims for the development of a flourishing and inclusive society that offers happiness to all.
MARUI GROUP therefore declares its commitment to endorsing international standards regarding human rights andensuring respect for the personalities and individuality of all people throughout the Company.

3. C ompliance with Occupational Healthand Safety Laws 
We comply with Japan’s Industrial Safety and Health Act andother labor-related legislation as well as with the internal
rules regarding occupational health and safety in place at all
Group companies and workplaces.

5. Facilitation of Employee Health Improvement 
MARUI GROUP understands that the health of employees is
crucial to their growth. We therefore practice healthcare
management aimed at preventing mental health issues andlifestyle diseases as well as enabling all employees to feel
more energized in their work.

3. Responsibility toward Promoting Respectfor Human Rights Based on the United Nations Guiding Principles on Businessand Human Rights, we practice human rights due diligenceand utilize other methods to evaluate the direct and indirect
impact of all of our business activities on human rights andthen address any negative impacts that come to light.

4. Realization of Safe and Low-Risk Workplace
Environments 
MARUI GROUP seeks to realize safe and low-risk workplaceenvironments by determining the sources and extent of theoccupational accident risks faced in each business andformulating and implementing measures to reduce or eliminate these risks.

6. Cultivation of a Corporate Culture Emphasizing
Occupational Health and Safety We will cultivate a corporate culture emphasizing occupational health and safety by conducting proactive employee
education and awareness-raising programs related to these
topics. All Group officers and employees are expected toobserve the MARUI GROUP Occupational Health and Safety
Policy, and we ask that business partners and other external
stakeholders endorse this policy while also making this policy
publicly available.

Occupational Health and Safety Management System

Healthcare Management Promotion System
MARUI GROUP practices healthcare management to prevent
mental health issues and lifestyle diseases in employees, limit
exposure to secondhand smoke, reduce overtime, and raise
employee health awareness. Healthcare management initiatives are spearheaded by MARUI GROUP’s Personnel
Division and Health Management Division and are coordinated with the Company’s health insurance union.

1. Commitment to Respecting Human Rights We stand in opposition of all discrimination, whether on thebasis of race, nationality, religion, ideology, biological sex,age, physical characteristic, gender identity, or sexual orientation, and exercise respect for the personalities and individuality of all people throughout our business activities andour relationships with customers, business partners, employees, and other stakeholders.
2. Compliance with International Standards 
MARUI GROUP complies with international standards regarding human rights. Accordingly, we adhere to the standards
described in the International Bill of Human Rights and theILO Declaration on Fundamental Principles and Rights at
Work regarding freedom of association, the right to collective
bargaining, the prohibition of forced labor and child labor,
and the elimination of workplace discrimination.

4. Fostering of a Corporate Cultureof Respecting Human Rights Through proactive education and awareness-raising programs targeting all Group officers and employees, we work toentrench the MARUI GROUP Human Rights Policy in our
corporate culture and in all of our business activities. In
addition, we ask that business partners and other external
stakeholders endorse this policy while also making this policy
publicly available.
Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.
November 9, 2017MARUI GROUP Occupational Health and Safety Policy
MARUI GROUP seeks to co-create customer happiness through its business activities, which merge retailing andfinance. We understand that providing employees with a safe and hygienic workplace environment is essential tosupporting the growth of all employees and is instrumental to invigorating the entire organization and driving theimprovement of corporate value. MARUI GROUP therefore declares its intent to act in accordance with thisunderstanding in all business activities, pursue higher levels of safety and hygiene, and to promote voluntary
occupational health and safety initiatives on a Groupwide basis.
1. Development of a Workplace Environmentthat Prioritizes Health and Safety Realizing that the health and safety of employees is crucial totheir growth, all workplaces will foster awareness andheighten understanding regarding occupational health andsafety, prioritizing the development of an environment inwhich employees can feel safe and secure and maintain goodmental and physical health as they work.

2. Promotion of Voluntary Occupational Health and
Safety Initiatives 
Occupational health and safety targets are set at all Group
companies and workplaces based on MARUI GROUP’s
occupational health and safety plans in order to promote
voluntary occupational health and safety initiatives. Thesetargets are periodically revised to pursue higher levels of
health and safety on a Groupwide basis.

Central Occupational Health and Safety Committee• Drafts Groupwide occupational health and safety
plans, supports occupational health and safety initiatives at Group companies and workplaces, andreceives reports on frontline operations• Holds regular meetings four times a year and special
meetings as necessary
Chairperson

Executive officer of MARUI GROUP CO., LTD.

Members

Three representatives from Group companies,
four representatives from labor unions, one
full-time director of MARUI GROUP’s healthinsurance union, and one Company physician

Secretariat

Labor Section, Personnel Division,
MARUI GROUP CO., LTD.

Secretariat

Workplace Occupational Health and Safety Committees•S et Group company and workplace occupational
health and safety targets, institute related initiatives,and implement improvements• Holdregular meetings 12 times a year and special
meetings as necessary

Members48

Consultation Venues
Company physicians and occupational health staff arepositioned in MARUI GROUP’s Health Management Division
on a full-time basis to provide employees with a venue for
consulting on mental health and other health issues and forreceiving support in improving lifestyle diseases. In addition,
we have established a hotline for receiving third-party physical and mental health consultation through collaboration witha specialized external organization.

One general occupational health and safety
manager, one occupational safety manager, one
to three occupational health managers, one
Company physician, and four to six representatives from labor unions

Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.
November 9, 201749

Overview of MARUI GROUP
As of March 31, 2017

Company Overview
Name
Head officeDistribution of Shares Held by Shareholder TypeMARUI GROUP CO., LTD.
3-2, Nakano 4-chome, Nakano-ku,
Tokyo 164-8701, Japan
February 17, 1931
March 30, 1937

Date of foundation
Date ofestablishment
CapitalBusiness activities

Stock Information
Stock listing

Financial institutions
97,543,000 shares(41.7%)

Individuals andothers*2
26,773,000 shares(11.5%)¥35,920 million
Corporate planning and management
for Group companies conducting
Retailing business and FinTechbusinesses
StoresMarui and Modi: 27 located in Kanto,
Tokai, Kansai, and Kyushu regions
Total sales floor area 452,100m2
Number of
5,732
employees(Group total, excludes temporary employees)
Main banks
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation
Mitsubishi UFJ Trust andBanking Corporation
Mizuho Bank, Ltd.
Development Bank of Japan Inc.
Accounting auditor
KPMG AZSA LLC

Tokyo Stock Exchange, First Section(loan margin trading issues)
8252
1,400,000,000

Securities code
Number of
authorized shares
Number of common 233,660,417
shares issued*1
Number of
24,080shareholders*1 Number of common shares issued includes 4,202,450 shares of treasury
stock, equivalent to 1.8% of the total number of shares of common stock issued.

MARUI GROUP Websites
MARUI GROUP CO., LTD. 

233,660,417 shares

Foreign institutions
and individuals
64,897,000 shares(27.8%)

Securities companies
7,101,000 shares(3.0%)

Other companies
within Japan
37,344,000 shares(16.0%)*2 Individuals and others includes 4,202,450 shares of treasury stock.

Corporate, IR, sustainability, and recruit informationwww.0101maruigroup.co.jp/en/

Major Shareholders
Number ofPercentage ofsharestotal shares(Thousands ofissued*3 (%)
shares)Name

The Master Trust Bank of Japan, Ltd.
(Trust Account)30,135

13.1

Japan Trustee Services Bank, Ltd.
(Trust Account)

17,144

7.5

GOLDMAN, SACHS & CO. REG

6,185

2.7

Aoi Real Estate Co., Ltd.

6,019

2.6

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,808

2.5

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

5,460

2.4

Japan Trustee Services Bank, Ltd.
(Trust Account 9)

4,179

1.8

Japan Trustee Services Bank, Ltd.
(Trust Account 5)

3,814

1.7

Toho Co., Ltd.

3,779

1.6

AOI SCHOLARSHIP FOUNDATION

3,234

1.4

Sustainability (CSR) sitewww.0101maruigroup.co.jp/en/sustainability/

ESG DATA BOOKs
www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

Email Newsletter (Japanese only)
MARUI GROUP distributes an email newsletter containing information on the latest topics and financial results
as well as details on events and surveys.
www.0101maruigroup.co.jp/ir/infomail/reg.html

Retailing Business 

FinTech Business 

Marui store and product informationwww.0101.co.jp.e.ex.hp.transer.com

Epos Card Co., Ltd. (Japanese only)
www.eposcard.co.jp*3 P ercentage of total shares issued is calculated excluding treasury stock andincluding 502,300 shares held under the Board Incentive Plan Trust schemeand the Employee Stock Ownership Plan Trust scheme.

Stock Price
Closing price for Company stock (Yen)

Nikkei 225 (Yen)
30,000 2,500

24,000

2,000
1,500

18,000

Nikkei 225

12,0001,000
Closing price for Company stock

500

6,000

0

0

MARUI Internet shopping “marui web channel” (Japanese only)
voi.0101.co.jp

Trading volume (Thousands of shares)
100,000
80,00060,00040,00020,000050

2008/1

2009/1

2010/1

2011/1

2012/1

2013/1

2014/1

2015/1

2016/1

2017/151

Ratings, Awards, and Recognition

More detailed information on these and other awards and recognition can be found on the Company’s corporate website.
www.0101maruigroup.co.jp/en/ci/award.html

MARUI GROUP was awarded a score of A- for thesecond consecutive year in CDP Climate Change
Report 2017, Japan edition, out of recognition for its
efforts to control emissions of CO2 and othergreenhouse gases and manage risks related toclimate change.

MARUI GROUP was included in the Excellent
Enterprise of Health and Productivity Management —White 500 selection. This inclusion acknowledged
our proactive healthcare management approach that
goes beyond simply addressing lifestyle diseases andmental health issues in an attempt to energize
employees.

MARUI GROUP was awarded with a silver rating in
the PRIDE INDEX, which was established by workwith Pride, in 2016 and then the highest rating ofgold in 2017 out of recognition of its inclusion of aclear declaration that individuals are not to suffer
discrimination on the basis of sexual identity orsexual orientation among the items prohibiting
discriminatory treatment in its labor agreements andits establishment of an internal consultation venue forLGBT issues, among other initiatives.

MARUI GROUP was selected for inclusion in theMorningstar Socially Responsible Investment Index.
This index compiles the stock price of listed companies in Japan that display excellence in terms ofsocial contributions based on ESG concerns andhuman resource-related matters.

MARUI GROUP was listed among the Companies
Exhibiting Excellence in Promoting Women’s
Empowerment in the SMBC Nadeshiko Loans andPrivate Placement Bonds selection out of reflection of
the Company’s establishment of women’s empowerment indexes for measuring the empowerment offemale employees.

MARUI GROUP received the highest rank of A in theDevelopment Bank of Japan Inc.’s DBJ Environmentally
Rated Loan Program, which scores companies onenvironmental management activities, selects
companies exhibiting excellence, and sets financing
conditions accordingly. The Company was alsopresented with a special award reserved for companies with particularly high ratings that can serve asmodel examples.

MARUI GROUP received a Best IR Award in the 2017
IR Award program of the Japan Investor Relations
Association based on the high evaluation of theCompany’s efforts to step up its investor relations
activities, particularly those conducted by membersof senior management; the stance to co-creating
corporate value with investors expressed in these
activities; and its explanatory forums pertaining to
ESG matters and integrated reports.

MARUI GROUP has received Platinum “Kurumin”
certification, which is designed to recognize companies that have acquired regular “Kurumin” certification for providing superb levels of support for
employees’ childrearing efforts and that have madeexceptional progress in introducing and promoting
the use of work-life balance systems and are implementing high-level initiatives.

MARUI GROUP received an award of excellence inthe 6th Carbon Offset Awards, making it the first
apparel company to be recognized by this program,out of acknowledgment of the Rakuchin Kirei series ofshoes being eco-friendly products and the highevaluation of related carbon offset initiatives.

MARUI GROUP was awarded the 16th Porter Prizeout of recognition for how we ensure the convenienceof credit card issuance, how our cards are largely
held by customers under the age of 40, and the large
ratio of revolving payment usage.

The Ministry of Health, Labour and Welfare presented
MARUI GROUP with a Special Encouragement Awardin 2014 and then the Grand Prix Award in 2016 in its
Ikumen Enterprise Award program as part of its
Ikumen Project for supporting men in participating inchildrearing and acquiring childcare leave. Theseawards are a reflection of the high evaluation of theCompany’s introduction of a short-term childcare
leave system and the rapid increase in usage ofchildcare leave systems by men.

MARUI GROUP received the grand prize in the GP
Environmental Award in 2015 and 2016 and arunner-up prize in 2017. In this program, which isoperated by the Japan Federation of Printing
Industries, the Company was recognized for its
proactive utilization of the “Green Printing” certification
scheme and its environmental preservation initiatives.

Global Socially Responsible Investment Indexes

DISCLOSURE INSIGHT ACTIONMARUI GROUP was chosen for inclusion in the FTSE4Good Index Series,
comprising companies selected by FTSE Russell for meeting evaluation
standards based on ESG criteria.

MARUI GROUP has been selected for inclusion in the Dow Jones
Sustainability Asia Pacific Index, the Asia Pacific division of the Dow Jones
Sustainability Index series, a major global socially responsible investment
index series.

Three ESG Indexes Utilized by
the Government Pension Investment FundMARUI GROUP was included in the FTSE Blossom Japan Index. This index ismeant to reflect the performance of Japanese companies that meet various
ESG-related requirements, and industry is therefore not considered whenselecting companies for inclusion.

MARUI GROUP was included in the MSCI Japan ESG Select Leaders Index.*
This ESG index comprises Japanese companies with relatively high MSCIESG Ratings in each industry selected from among the top 500 companies
in terms of market capitalization after excluding those companies with thelowest MSCI ESG Rating of CCC.

MARUI GROUP has been included in the MSCI Japan Empowering Women
Index,* an ESG index for Japanese stocks consisting of companies thatexhibit gender diversity excellence in each industry, based on the Global
Industry Classification Standard, selected from among the top 500 companies in terms of market capitalization.
* THE INCLUSION OF MARUI GROUP CO., LTD. IN ANY MSCI INDEX, AND THE USE OF
MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF MARUI GROUP
CO., LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVEPROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE
TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

52

Rating and Investment Information, Inc.
MARUI GROUP has been granted a rating of A- for its overall debt repayment
capacity with regard to financial liabilities.

MARUI GROUP Ranked High Among Retail Sector Companies
in the 2017 All-Japan Executive Team Rankings Released by U.S.
Financial Industry Magazine Institutional Investor
Honored Companies
Combined No. 3
Best IR Companies
Best CEOBest Analyst Days

Combined No. 1,
Buy Side No. 1, Sell Side No. 2
Buy Side No. 3
Combined No. 2

The All-Japan Executive Team Rankings is a ranking of major listed Japanesecompanies compiled by U.S. financial industry magazine Institutional Investor,
based on votes from institutional investors and securities analysts from aroundthe world. In 2017, votes were received from 1,007 institutional investors andsecurities analysts from 368 institutions.

Nikkei DUAL Companies Supporting Childrearing
by Two-Income Households Grand PrixMARUI GROUP has received a Special Encouragement Award in thisprogram for two consecutive years, in 2016 and 2017, out of recognition of
the high evaluation of its efforts to promote diversity within the Company
and understanding in this regard and to increase the ratio of applicable male
employees taking childcare leave and to reduce overtime. This award also
recognizes MARUI GROUP’s efforts to support the work-life balance of
employees raising children and implement workstyle reforms among its
management strategies.

MARUI GROUP was selected for an award in the
Impact category of Universal Manners Award 2017,
which is sponsored by the Japan Universal Manners
Association to recognize companies and organizations that are working to create more comfortableenvironments for a diverse range of people including
senior citizens and differently abled individuals.

2017

MARUI GROUP received an award for excellence of
Co-Creation Management Report 2016 and
Co-Creation CSR Report 2015 in the environmental
report category of the 20th Environmental
Communication Awards out of recognition of its
proactive environmental communication initiatives
through the publishing of environmental reports.

The MerComm Annual Report Competition is a global
competition for annual reports held by U.S. independent evaluation firm MerComm, Inc. This competition
judges and evaluates annual reports from various
perspectives, including financial and management
information, concept, and design. In 2017, 1,987
reports from 33 countries were judged, and MARUIGROUP’s Co-Creation Sustainability Report 2016(English-language version) was able to rise above thecompetition to receive a Silver award.

53

Third-Party Opinion
Messages from the Editorial Staff
MARUI GROUP’s Co-Creation Sustainability Report 2017 is one of the few
sustainability reports that I have found to be fun and interesting to read. The
spirit of the Company, its ambitions and resolve, was present throughout its
pages, leaving a very favorable impression. Moreover, this report led me torediscover MARUI GROUP. I believe that the most fundamental role of a sustainability report is to illustrate the “personality” of a company as is done inthis report, but few have succeeded in this respect.
I have particularly high praise for this report with regard to the following
five areas.
Peter David Pedersen□ The design was exceptional and it was easy to read.

Co-founder, E-Square Inc.
Executive Director,
The Academy for Corporate LeadershipCo-founder, Next Leaders’ Initiative for Sustainability□ There was a consistent narrative spun throughout the report based on a

Born in Denmark in 1967, Peter David Pedersen
graduated from the Institute of Cultural
Anthropology at Copenhagen University. His
activities in Japan began in 1984. Mr. Pedersen
co-founded E-Square Inc. in 2000 and worked
with numerous Japanese multinationals on
sustainability strategy. In 2000, he introduced
Japan to the concept of lifestyles of health andsustainability (LOHAS). He left his position as CEO
of E-Square Inc. in 2011 but continued his work as
co-founder. Mr. Pedersen became executive
director of The Academy for Corporate Leadership(TACL), a part of TRANSAGENT Co., Ltd., in 2014.
In 2015, he became co-founder and represen­tative director of Next Leaders’ Initiative for
Sustainability (NELIS­).

Thank you for reading Co-Creation Sustainability Report 2017 toits end. I hope you enjoyed reading this year’s sustainability report.
This report sought to explain MARUI GROUP’s vision for
co-creation sustainability management based on the theme ofinclusion. We also received help from many of the stakeholders
that aid us in our initiatives so that we could include a greater
amount of discussions with stakeholders than had been featured
in last year’s report. The result is explanations featuring a morediverse range of viewpoints. However, we realize that there is still
a lot of room for improving upon our reports. We hope to pursue
improvements in future reports based on the advice of our readers, and we therefore ask that you feel free to offer your frankopinions with regard to this report.
I look forward to your ongoing support of MARUI GROUP.
Sustainability Department and ESG Promotion Department
MARUI GROUP CO., LTD.

MARUI GROUP distributes its co-creation management reportand co-creation sustainability report to all employees. I have yet
to see another company that does this. MARUI GROUP’s cocreation sustainability reports came into existence by building
upon its co-creation management reports to place more emphasis on the Company’s connections with all stakeholders. At
MARUI GROUP, employees going about their business have a
direct impact on management.
Three years have passed since MARUI GROUP began publishing these reports, and we have therefore had the pleasure ofhelping produce six reports. MARUI GROUP’s innovation andevolution has been palpable throughout this process. In its
second cycle of reports, I look forward to MARUI GROUP spreading its unique brand of inclusion to the world through ongoingengagement and co-creation with stakeholders so that people
can always have a glimpse of the essence of MARUI GROUP
in the now.

clear theme (inclusion).
MARUI GROUP Project TeamEDGE INTERNATIONAL, INC.

□ The constant inclusion of real people (managers, employees, external stakeholders, etc.) gives the report an added degree of warmth.
□ The introduction of future employees set to join MARUI GROUP next year
and their statements about their anticipations for joining the Company andthe workstyles to which they aspire were most interesting.
□ The section on workplace inclusion presented the idea that diversity andhealthcare management, based on a broad definition, could give rise toinnovation. This idea is inspiring. Also, the views on and definition of diver-

Efforts to Spread Inclusion
MARUI GROUP put forth the idea of inclusion in Co-Creation Sustainability Report 2016, and the Company has since been engaged in a
myriad of efforts aimed at helping create a flourishing and inclusive society offering happiness to all. These efforts will be continued in
the future to spread MARUI GROUP’s concept of inclusion both inside and outside of the Company and thereby help enrich society.

sity were themselves diverse, which was a plus.
If there were an area requiring improvement, it was probably not related toreporting per se, but more to the need to further develop some of the activities
described in the report. For example, the direction the MARUI GROUP indicated for its ecological inclusion and reduction initiatives is sound and good,
but it felt like there was more that could be done in this area. Preserving ahealthy environment is crucial to the happiness of future generations. I hope

MARUI GROUP holds explanatory
forums for investors to offer
explanations of management policies
and ESG information.

A booth was established at
Eco-Products 2016 to introduce
try-on stores, and we exhibited in
the area devoted to the SDGs at
Eco-Products 2017.

Inclusion Fes 2017 was held as avenue for fostering awarenessamong employees and allowing
them to experience their differences firsthand.

We are stepping up support fornationwide events as part of the OUT
IN JAPAN LGBT coming out project.

We established Order Suits andshoes corners while participatingin the RAINBOW CROSSINGTOKYO 2017 event supportingLGBT job seekers.

We clothed members of the LGBT
community in Marui yukata to enjoy
summer at a star-viewing event heldat the beach.

MARUI GROUP has concluded
a partnership agreement with theJapan Blind Football Association
through which it holds various
workshops.

Co-Creation Sustainability Report2016 (English-language version)
received a Silver award in the
MerComm Annual Report
Competition.

to see MARUI GROUP implementing innovative and distinctive initiatives inthis regard in the future. As for the FinTech (credit card) business, there is no
doubt a negative side to this business, namely collecting debt from payment
delinquents. I would have liked to have known more about how MARUI GROUP
addresses this issue, that is, how it overcomes the dilemma presented by theneed to protect the human rights of delinquents while also responding to thenecessity of recovering debt.

54

55

About Co-Creation Sustainability Reports
We have always viewed reports as having a three-year cycle. Each year, we have described our innovations in our cocreation management reports and then evolved these ideas in our co-creation sustainability reports to explain the policies regarding co-creation, happiness, all customers, inclusion, and other concepts that give form to MARUI GROUP’s
philosophy of co-creation. The next three-year cycle will represent the second cycle of reporting in which we will continue to innovate and evolve, further building upon the foundation formed by the first-cycle reports.
Co-Creation Management Reports

Co-Creation Sustainability Reports

Co-creation of customer happinesswith partners

MARUI GROUP’s vision
for 2020

Co-Creation Management

For All Customers

MARUI GROUP’s concept of corporate value

Theme for us as we advance toward the future

Harmony between the Interests andHappiness of All Stakeholders

An Inclusive Society
Offering Happiness to All

Step 1: Fiscal Year Ended March 31, 2015

Co-Creation Management
Declaration

Step 2: Fiscal Year Ended March 31, 2016

Co-Creation Management froma Corporate Value Perspective

Step 3: Fiscal Year Ended March 31, 2017

Co-Creation Management
Business Model

Co-Creation Management Reportwww.0101maruigroup.co.jp/en/ir/lib/i-report.html

Realization of an inclusive society

No one excluded

Unique Business Model Merging
Retailing and Finance

MARUI GROUP’s
Vision for Inclusion

Co-Creation Sustainability Reportwww.0101maruigroup.co.jp/en/sustainability/lib/s-report.html

The carbon footprint of the Japanese-language version of thisreport, or the amount of CO2 emitted in printing one report,
has been calculated based on the instructions of Mizuho
Information & Research Institute, Inc.
Carbon footprint

56

Co-Creation Sustainability Report 2017

Publication date: January 2018
Publisher: MARUI GROUP CO., LTD. /Sustainability Department and ESG Promotion Department
Planning and production: EDGE INTERNATIONAL, INC.
Printed in Japan