Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI GroupNITORI Group’s History [Our Value Creation Journey]

902
948.0
801

The driving force behind our growth is our mission to722“enrich homes of people all over the world.”576

We will continue to grow by responding flexibly tothe changes of the times, rejecting the status quo,

523
471
420
373

and working for reform.
Net sales (billions of yen)

Ordinary income (billions of yen)

Number of stores* Numeric figures are from the financial statement announcement, excluding 1967, when the company was founded(fiscal year ended February until FY2021, after FY2022 fiscal year ended March)

3

1

1967

7

18

15

21

29

24

73

0.4
0

2.9
0.1

9.0
0.4

13.2
0.9

17.5
1.2

19.3
1.5

25.6
1.8

34.8
2.0

48.9
3.5

63.2
3.8

1973

1979

1986

1990

1992

1994

1996

1998

2000

2001

Creation of Management Policy

73

78.7
7.1

88.2
8.9

2002

2003

100

108.7
13.0

2004

116

129.4
15.2

2005

156.7
19.0

2006

189.1
23.1

2007

162
217.2

188

286.1
244.0

47.4

314.2
53.5

268
331.0
59.1

331

458.1

387.6
348.7
62.1

63.4

2013

2014

417.2
67.9

87.5

103.0

138.4

141.8

144.0

2022

2023

109.5

94.8

75.0

33.9
26.5

2008

2009

2010

2011

2012

2015

Domestic nationwide development/
Overseas expansion

Establish a business model that will revolutionize the furniture industry

512.9

642.2

716.9

2016

2017

2018

2019

2020

2021

(ended February) (ended March)Globalization and expansion of business fields

1967

1973

1994

2005

2013

2017

2021

NITORI Furniture StoreestablishedDirect purchase frommanufacturers started

Began operating an overseas factory

Hanoi factory in
Vietnam began
operatingOpened the first store in the U.S.

The new factory in Ba Ria-Vung
Tau, Vietnam, began operation

Management integration withSHIMACHU CO., LTD.

2007

2014

2018

2022

¥100 billion in net sales

Opened KaohsiungDream Mall Store

1986

Opened Wuhan Star City Store
Launched NITORI app service

SIAM NITORI becomes wholly
owned subsidiary

2004

2008

Opened the first store in Malaysia
Opened the first store in Singapore
Nitori Digital Base establishedStarted direct import ofoverseas products

Established NITORI-net

Price Cut Declaration

2015

Founding spirit“To bring the comfortableand enriched livingof the U.S. to Japan”

Established factories overseas in order to achieve
Break through from being just a furniture store low prices for products with Japanese quality● Opened large stores which sold products
2003that make daily life more enjoyable
and convenient
Achieved 100 stores and● Achievement of total coordination

Adding cost competitiveness that is one
step ahead

23

50

37

82

130

145

217

244

300

572.0

608.1

611

811.5

Launched the online sales businessPrice cuts on 1,000 items
following the global financial
crisis

Aki-Home
Full-scale global business development

Opened Nitori Printemps Ginza Store as
the first store inside a department store

2019
Started apparel brand N+

24

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI Group

Value Creation Model of NITORI GroupIn order to realize our mission, NITORI Group has built all functions in-house, from planning andmanufacturing to sales.
To maximize the creation of shared value and value creation of “offering the unexpected” in the
future, we will continue to challenge the evolution of our customer-oriented business model.

NITORI Group’s unique businessmodel provides value by“offering the unexpected”
P27-28

Product development thatconsiders total optimizationfrom planning and design
stages.

Product
Development
Coordination

In response to customer requests to takehome and use large products on the same
day they are purchased, the packaging,
especially bedding products, wascompressed. As a result, environmentallyand socially friendly effects were created.

Raw Material
Procurement

MissionStatement

SystemDevelopment

Sales (Stores)

Socialvalue
Quality Control

Sales(E-commerce)

Scan the QR code forother compressedpackaged products

Manufacturing

Enriching homes of people
all over the world

Environmental
value

NITORI Group’s business model that integrates manufacturing, logistics, IT and retail, was developed in the processof realizing the mission. The business model enables us to consider overall optimization in all phases frommanufacturing to logistics and sales.
Furthermore, at our stores, we are able to hear directly from our customers on a daily basis. The following are just a
few examples of how our efforts to address the problems and changing values of our customers has resulted ininitiatives that are good for our customers, the environment and society and NITORI Group.

Compressed packaged products

Economic
value

Product
Planning

How NITORI Group creates value
through its’ business model

Trade

Improvecustomerconvenience asy to takeE
home
Products that weredifficult to take home
due to their size, cannow be taken home on
the same day they arepurchased.

Product
Planning

Manufacturing

Sales (Stores)

Logistics

Transportation
Cost
Reduction
CO2 reduction

Logistics

IT/DX Foundation

Foundation of
Human Resources

Management System /Corporate Governance
NITORI Group Sustainability
for the creation of shared value
P29-3025Countermeasures against out-of-stock
products and reduction of store workloads
Increased amountof products on shelf
In addition to helping toprevent product shortages,
it also reduces the numberof times products need tobe put out, leading to a
reduction in store workload.

Improved loading andtransportation efficiency
The number of products that can be loaded
into a container or truck during transportation
is increased, greatly improving the efficiency
of products transportation, which also
contributes to improved driver productivity.
Furthermore, the reduction in the number ofcontainers and trucks leads to a reduction
not only in transportation costs but also in
CO2 emissions.

26Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI GroupNITORI Group’s Strength (Business Model)
A manufacturing-distribution-IT-retail business: NITORI Group’s
unique business model provides value by “offering the unexpected”
Proposing interior coordination to enrich lifestyles
Product planning that creates customer satisfaction
We investigate and analyze products fromthe perspective of those using andpurchasing them. Our Merchandising
Department staff members travel to eachregion to study trends in addition to
conducting thorough market research and
we are developing original products in our
pursuit of comfortable lifestyles for ourcustomers.

Product Development
Coordination

Development andoperation of the core
IT system to support
the Group
The business model that comprises
the NITORI Group’s greatest
strength is supported by the IT
Division. Not only does the divisiondevelop, operate and maintain
NITORI’s core IT system, it also
provides other support such as
improving the efficiency of wide
range of tasks and developing tools
for enhancing standards ofcustomer service in stores

We develop products with unified colors,
designs and style from scratch so that ourcustomers can easily enjoy total
coordination in line with their preferences.
We are providing society with guidance fora new lifestyle that coordinates naturally.

We have built all the functions of a business model that integrates manufacturing, logistics, IT and retail within NITORI Group,utilizing our strong human resource foundation and global network of partner companies. We will continue to take on the challenge of
evolving our customer-oriented business model in order to “offer the unexpected.”

Sourcing that expands across the globe
In order to achieve low prices and adequate
quality, we promote vertical merchandisingthat extends all the way back to our raw
materials. We actually visit the sites
ourselves to gather information on production
localities and conduct negotiations andcontract with suppliers directly.

Building a solid production system with
our own and collaboration factories
NITORI Group provides direction andmanagement for all manufacturing
processes of the products we manufacture,even at partner factories. In addition, we
have our own factories where we areenhancing our manufacturing functions. This
production system is the cornerstone of
NITORI Group’s unique ability to develop
products with quality and functionality.

Raw Material
Procurement
Manufacturing

Product Planning

SystemDevelopment

We control everything in
an integrated manner, fromproduct planning to manufacturing,logistics and sales.
This is our system forcreating products thatthat “offers the unexpected.”

1 Affordability「お、ねだん以上。」

2 Quality

Quality Control

3 Coordination

Trade
Sales
(E-commerce)

Logistics

Creating stores that are easy
to visit and easy to shop at

27

Safety and quality are assessedfrom every angle to ensure that
customers can use our productswith peace of mind. Only productsthat meet stringent standards enter
commercial production.

These are our 3 commitments
to “offer the unexpected”

Sales (Stores)

We are making efforts to create attractive
stores and enhance standards of customer
service so that customers can fully
appreciate the enjoyment of shopping. We
are opening stores not only in the suburbs,
but also in city centers and in areas aroundstations to provide enriched lifestyles toeven more customers.

Taking responsibility
for the quality ofall products

Building our own customs clearance system
Proposing more convenient ways to shop
We are proposing more convenient ways to shop
to better suit customers’ lifestyles, such as the
NITORI app and our service that allows
customers to pick up orders they make online at
our stores. We are endeavoring to create aconvenient and comfortable service by engaging
in digital marketing, including by adding usefulfeatures to the app.

A distribution network that enablesdelivery to customers all over Japan
We have built our own distribution network fromimporting of products to their delivery tocustomers. We are pioneers in implementing theleading technology, such as the robot storage
system and devanning assist machine, toachieve greater work efficiency and lower costs.

By conducting all tasks related to importing,including applications, permits, approvals
and contracts, internally we are able tosignificantly cut costs, and at the same time
we are establishing a system that ensures
the smooth supply of products to domestic
distribution centers.

28

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI GroupNITORI Group’s Sustainability
Sustainability of NITORI Group, supporting “Creation of Shared Value”

Sustainability Policy

Materiality Issues

Taking steps toward achieving our mission while resolving the ITORI Group positions Sustainability Management
N
Promotion as an important management strategy
and identifies materiality issues in order to realize its
mission and visionIn identifying environmental and social issues, we
examined them from the two aspects of “importanceto stakeholders” and “importance to the Company

issues of the world, aiming for a better future.
NITORI Group has been advancing to accomplish its mission of enriching homes around the world. The Group’s
unique business model that integrates manufacturing, distribution, IT and retail was developed in the course of thisprocess. By allowing us to achieve thorough efficiency enhancement and cost reductions, this business model
makes it possible for us to offer customers products and services that live up to the concept of “offering
the unexpected.” Furthermore, this business model enables us to take actions for total optimizationfrom the perspective of sustainability, leading to the creation of new value that contributes toresolving environmental and social issues. By repeating the process of rejecting the statusquo and promoting innovation, we will sincerely address each issue of the ever-changing
world. Aiming for and pursuing a “better future” for our customers and all of our
stakeholders, the environment, and society, we are committed to sustainability
management befitting NITORI Group.
SystemProduct
Planning

Representative Director& President

Director responsible
for Sustainability
Management Promotion

Director

Sustainability Management
Promotion Council

4

Promotion ofenvironmentallyfriendly business

Fair and honest
trade and respect forhuman rights in the
supply chain

5

6

7

MissionRaw Material
Procurement

Contribution to local
communities

Creation of arewarding work
environment andpromotion of diversity

Effective corporate
governancehomes ofpeople all

Manufacturing

over theEnvironmental
value

Sales
(E-Commerce)

Communication and Dialogue
Quality
Control

TradeSocial value

 ITORI Group places great importance on dialogue with its various stakeholders,N
including customers, local communities, employees, suppliers, shareholders andinvestors.
We will respond promptly to the opinions of our stakeholders in order to improve ourcorporate value and realize our mission and vision.

Secretariat

Endorsed Initiatives

External Evaluation

Sustainable
Development
Goals Promotion
OfficeSustainability Management
Promotion Subcommittee

The committee consists of division managers from operatingcompanies and sets specific sustainability targets and compiles
measures to address them

29

3

Product Planning
Coordination“To enrich

Logistics

Chairperson

Product safety andsecurity throughcomprehensive
quality control

P43 - 44

Board of Directors
Sustainability Management
Promotion Committee

Contribution toenriched lifestyles
by “offering theunexpected”

world”

Management Promotion System
The Sustainability Management Promotion Committee, chaired by the
Representative Director & President of Nitori Holdings, Co., Ltd., discusses
general sustainability matters relating to NITORI Group as a whole.

2

Economic
value

Development

Sales(Stores)1

Provide advice on the progress of
initiatives and determine thedirection and measures to be taken
by NITORI Group30

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI Group

Evolution of the NITORI Group toward Value Creation
We have created a unique business model to deliver value of “offering the unexpected” to our customers by providing
appropriate quality and a uniform assortment of colors and styles. This business model reduces intermediate costs as muchas possible and passes the savings on to our customers by bringing the entire process of manufacturing, logistics, IT andsales in-house. We will continue to invest in the future to improve and further strengthen each value chain issues.

By addressing environmental and social issues at each step of the value chain, we will promote shared value creation withstakeholders and respond to risks and opportunities, thereby enhancing the sustainability of the NITORI Group and society.

P33 - 34

P35

P36

P37 - 38

P11 - 12、P39

P40

P41 - 42

Product Planning/
Coordination

Manufacturing

Quality Control

Logistics

Sales(Global Nitori/Deco Home)

Sales(Shimachu)

Sales(E-commerce)

Value Chain

Medium- to longterm management
strategies

Expanding business fields
and gaining
customer support

Accelerating expansion of
global chain store operation

Business infrastructure reform through supply chain
management, IT, and organizational strategies

Expanding business fields and gaining customer support

Sustainability management that balances the resolution of social issues and the realization of mission

Initiatives

Compatibility with
Sustainability31

 horough market researchTDevelopment and expansionof private brand (PB) products
Conversion of Shimachu
Home Center products to PB
Deployment of numerous
room-type presentations andenhancement of proposal
capabilities

 xpansion of factories inE
Vietnam and Thailand: In
preparation for the increasing
numbers of stores bothin Japan and overseas,
strengthening production
system and improving
productivity thus enhancing“manufacturing capability” forstable supply of products
Establishment of systems forsafe and secure work

 igital transformation ofD
Quality Control
Expansion of the restricted
substances list
Further enhancement ofplanning and design evaluation
meetings for products with newmaterials and functions (rawmaterial safety, compliancewith regulations and standards
and monitoring and guidance offactory management systems)
Establishment of global
product evaluation and quality
control system estructuring of domesticRlogistics bases
Internalization of containertransporting business fromports to distribution centersin order to strengthen
distribution network
Digital transformation oflogistics operations, suchas introduction of AGVs
(Automatic Guided Vehicles) omestic:DExpansion of sales floors
where customers can see
and touch the products
Actively opening new storesin small commercial areas
and urban areas
Overseas:
Accelerate store openings in
Asia and market research in
new countries and regions
Investigation of businessexpansion in new formats in
Taiwan roduct development thatP
consider effective use ofresources from the planningand design stages (e.g.,
structures that are easy tosort, use of raw materials thatare easy to recycle, etc.)
Development of functional
products that lead to energy
savings

 reation of local employment
Cat the company’s overseas
factories. Contribution to
the development of local
communities. Introduction ofmachines and equipments thatare easy to work with, even atsites with a high percentage offemale workers.
Efficient use of materials
Use recycled raw materials
and conserve limited
resources

 onduct audits of prospectiveC
new suppliers and evaluationof existing suppliers.
Confirmation of quality-related
items as well as items that
address environmental andsocial issues.

 eduction of CO2 emissions
Rthrough more efficientlogistics (modal shift,introduction of swap-bodycontainers, expansionof compressed package
products, etc.). Improving
working environment fordrivers

 ollecting goods for recycling
C
Promoting efforts to recycle resources by free in-store collection service of items that customers
often say they are having trouble disposing of, regardless of the seller or condition.

P57 Developing True
Partnerships with Suppliers

 trengthening PB
Sdevelopment of home
improvement products withNITORI Group’s productdevelopment capabilities.
Price reductions andimprovement of gross profit
marginIntegration of membershippoint reward programUse of Nitori membershippoints on SHIMAHO-net

 xpansion of NITORI
E
app functions. Offering a
convenient and comfortable
shopping experience.
Utilizing the social media.
Active streaming of livecommerce and in otherforms of social networking.
Launch of “Net-exclusive
page” featuring only products
available on NITORI-net.

P47 Collecting goods for recycling urtains: reused as products and fabric materials, and recycled as automobile insulation materials,
Cetc.
Down feather quilts: feathers are removed, cleaned and processed into NITORI’s down feather
products
Carpets and futon mattresses: crushed and used as thermal energy, then turned into raw materials
for cement

32

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI Group

Product Development

Coordination

Strength

Strength

Based on thorough market research, we provide unique private brand (PB) products that resolve customers’ discontent,With the philosophy of “Interior Design for Every Home,” NITORI Group will continue to develop and propose products

dissatisfaction and inconvenience. We plan, procure raw materials and develop products on our own, offering productsthat help our customers realize the enrichment of their lifestyle by naturally coordinating their rooms and making theirthat are high quality and high profit margins.

lives more enjoyable.

Initiatives for Medium- andLong-term Strategies
We are expanding our product lineup to contribute to a more prosperous
home living than ever before. Especially since we believe that home
appliances, along with furniture and interior decorations, add color to our lives,
we offer home appliances that combine functionality and design, aiming tocreate a total coordinated product lineup. In addition to products for single
person households, we are also expanding our lineup of large-sized products
for families. NITORI Group will continue to develop products that combine
convenient functions with price advantages.

Initiatives for Medium- and Long-term Strategies
We will strengthen our ability to make proposals to make coordination more familiar and accessible. Our products must be available
in a variety of colors, shapes and styles, be affordable and have convenient functions. In addition, we will express ideas of how
enjoyable and different lifestyle can be by adding these products to the home. If our customers feel that their rooms are naturally andwonderfully furnished as a result of shopping at Nitori, that is the realization of the joy of coordination.

Approach to Sustainable Manufacturing
At NITORI Group, environmentally conscious manufacturing is positioned as “Nitori’s ecology”, in which we promote initiatives
in each of the phases of “manufacturing, transportation and using”. Furthermore, we are developing products with a view toeffective utilization of resources from the planning and design stages and expanding the number of products that can becollected and used as resources, considering “after use”.
P45-46 NITORI Group’s Environmentally Friendly Manufacturing and Initiatives -Nitori’s ecology-

33

34

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI Group

Manufacturing

Quality Control

Strength

Strength

As part of vertical merchandising*, we have expanded manufacturing in our own overseas factories. We manufacture
approximately 40% of furniture and a portion of bedding, curtains and carpets in our overseas factories. Throughthorough quality control, reduction of manufacturing costs and optimization of supply volume, we support a stable supply
to our expanding store and e-commerce sales network.

We have established our own strict global quality standards based on official standards in the places where we open
stores, and conduct various tests, etc. from the product development stage. We audit quality assurance systems for new
suppliers and quality improvement for existing suppliers. Together with our suppliers, we are building a system to provide
safer and more reliable products.

*Vertical Merchandising: Designing the entire process from the procurement of raw materials to the delivery of products to the customer’s hands by itself.

Initiatives for Medium- and Long-term Strategies

Initiatives for Medium- and Long-term Strategies

The Hanoi factory, which manufactures mainly cupboards and other boxed furniture, beds and sofas, plans to start operation of thethird factory in 2024. The plant will promote quick delivery and strengthen the production system. The Ba Ria-Vung Tau factory
manufactures bedding, bed mattresses and curtains in an integrated production system. SIAM NITORI in Thailand manufactures
environmentally friendly carpets and rugs by using recycled raw materials such as plastic bottles and adopting waterless coloring
methods. At each of our factories, we are installing machinery to create a system that allows everyone to work safely and securely,
even in factories that manufacture large furniture and heavy products.

In line with the global standardization of products in conjunction with the acceleration of overseas opening stores, we have launchedinitiatives for the common operation of quality standards, tests and forms. Through the digital transformation of quality control management,
starting with the introduction of quality control management platform system, we will proceed to make operations seamless by coordinating
quality control activities between countries and regions by 2025. In addition, we will promote the transfer to overseas bases of operations
previously conducted mainly in Japan, such as development technology evaluation meetings and quality audits to confirm the safety of new
products, with the aim of establishing a global products evaluation system and quality control management promotion system.

Initiatives for Social Issues
Approximately 9,900 employees (of which 81% are women) work at our overseas
factories. NITORI Group creates local employment and contributes to the development oflocal communities. The factory promotes automation and labor saving in the productionlines for furniture and other large products. New machines, equipment and tools areconstantly being installed, such as the “vacuum lift” (*picture on the right), which enables
safe operation with less human power, even for large products. As a result, not only does
this improve production efficiency, but also creates a comfortable working environment atwork sites where there is a high ratio of female workers.
P56
Promoting initiatives to address environmental and social issues at NITORI’s overseas
locations and NITORI’s own factories

35

36

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI Group

Logistics

Strength

Initiatives for Environmental and Social Issues

NITORI Group provides integrated logistics services from drayage transportation*, operation and management, within its
own distribution centers to last-mile delivery. Overall optimization has realized lead-time reductions and cost reductions.
NITORI Group will develop overseas logistics infrastructure by spreading its knowledge and expertise in order to expand
its global business.
*Drayage Transportation: Transportation of containers arriving at major ports across Japan from overseas production factories to our inventory storage DCs (DC:Distribution Center).

Initiatives for Medium- and Long-term Strategies
As part of the restructuring of domestic logistics bases, a totalof approximately 350 billion yen is being invested to establish 8
new DCs nationwide (Ishikari, Kobe, Nagoya, Satte, Sendai,
Fukuoka, South Kanto and Kinki). Reforms are being promotedwith the development of a logistics network, digitaltransformation of operations and standardization of operations,centered on the optimal placement of bases and theconsolidation of functions. The Ishikari and Kobe DCs havealready begun operations, and construction and operation of
the Nagoya, Satte, Sendai and Fukuoka DCs will begin insequence. We will promote overall optimization. We will not
only rationalize inventory and lead time, but aloso reduce CO2
emissions by improving transportation efficiency.
37

Base A →Intermediate point

Intermediate point

Base B →Intermediate point

Base A

Base B
Intermediate point→ Base B

Intermediate point→ Base A

Changing cargo beds

It is now possible to exchange cargos at intermediate points in truck
transportation between long distance bases.

Improving logistics efficiency not only leads to costsavings, but also contributes to solving environmental andsocial issues.
In order to improve the long-distance transportation
efficiency and loading efficiency, NITORI Group has been
restructuring its logistics bases, implementing modal shifts
and introducing swap-body containers trucks. For example,
swap-body containers trucks, which are trucks that canseparate the body from the cargo bed, allow the bed to be
swapped at intermediate points over long distances,
thereby not only reducing empty transport after unloadingat the transportation destination, but also reducing theburden on drivers in cargo handling operations. Efficienttransportation leads to reduced CO2 emissions andimproved working conditions for drivers.
We will respond flexibly to the approaching 2024 overtime
cap for drivers, and at the same time actively work tocreate an environment where women and elderly drivers
can work with peace of mind.

38

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI Group

Sales

Sales

(Domestic stores: Nitori/ Deco Home)(Domestic Stores: Shimachu)

Strength

Strength

Nitori is expanding its store network nationwide to make life more comfortable and convenient for more customers. We
seek to create stores that makes it easy for customers to try out products and make purchases in a short period of timeto ensure a pleasant shopping experience. It is also used as a place to receive products ordered through e-commerce
and is an important base for connecting customers with the NITORI Group.

With many stores in densely populated areas in the Tokyo metropolitan area and Kansai region, Shimachu offers a wide
range of products for the home, including daily necessities, DIY and garden products, as well as furniture and interior
furnishings. Shimachu is building stores that respond to all kinds of housing-related needs, including those of
professionals.

Initiatives for Medium- and Long-term Strategies

Initiatives for Medium- and Long-term Strategies

In order to enable customers to experience new lifestyles, ideas for coordination andthe appeal of our products, we have expanded sales floors where customers can see
and touch products, at Nitori stores such as Meguro and Ikebukuro, which we openedin 2022. In the category of home appliances, we are expanding the variety and size of
products we offer and emphasizing the coordination with our other products. Home
appliance products were sold at different shelves in the store grouped by purpose ofuse, but sales floor with an expanded area for home appliances have been madewhere all the home appliances are sold in the same area, so it is convenient to shop.
At the same time, to improve shopping convenience, we have installed self-checkoutmachines and introduced a new service in the “in-store mode*” of the NITORI app.

Shimachu is promoting reforms to develop private brand (PB)
products, create stores that are easy to shop at, and build efficient
distribution network by taking advantage of synergies within the
NITORI Group as key issues. Shimachu is working on remodelingexisting stores and creating standardized layouts in preparationfor opening new stores. In addition, Shimachu is working to
improve convenience through the introduction of a membershipprogram common to both Nitori and Shimachu stores and therenewal of the app.

*In-store mode: function in the NITORI app which allow customers to check the sales floor and inventory statusof products, order products and pay for them without the actually taking products to the cash register.

Deco Home accelerates store openings
Launched in 2011 as an interior goods store originating from Nitori, it offers cute feminine products selected from a woman’s
point of view, ranging from daily necessities to items that adds an accent to a room. Deco Home is focusing on expanding its
original products, which currently account for about 60% of the total products. The target for the fiscal year ending March 31,
2024 is to achieve 80%. Under the concept of “a store where you can stop by every day,” Deco Home is actively opening
stores near stations and in shopping centers.

39

Plans for Store Opening in FY2023

Total of902

stores［ Net increase of 129 stores ］

559 stores

229 stores 60 stores

54 stores(+36 stores)(+62 stores) (+30 stores)(+1 store)

40

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Value Creation of NITORI GroupA Wide Range of Business Fields

Sales (E-commerce)

Expanding business fields to realize NITORI Group’s mission and vision
NITORI Group operates a range of businesses to enable customers to experience enriched lifestyles.
Having supplemented its established business by launching the N+ apparel brand and the NITORI
Dining restaurant business, the Group is now able to offer proposals to customers in all areas ofclothing, food and the home. We will continue extending the strengths cultivated within the Group into
new business areas as we endeavor to achieve our mission and vision.

N+
Launched in 2019, N+ is NITORI Group’s apparel brand for women. Inspired by
the concept of “total coordinated clothing for adults,” the brand proposes fashion
at affordable prices that is comfortable to wear and can be easily coordinated.
Looking ahead, we will increase the number of N+ stores and further extend therange of PB (private brand) products to provide our customers with attractive
products at even more affordable prices.

Strength
In order to respond to diverse customer needs that cannot be covered by stores, the NITORI-net offers a wider selectionof products and provides information and proposals to each individual customer. At the same time, utilizing the store
network, NITORI Group will accelerate OMO and establish a competitive advantage by expanding our services andcontents, such as in-store pickup and nationwide after-sales service.
* OMO: Online Merges with Offline

Initiatives for Medium- and Long-term Strategies
NITORI app has reached more than 16 million members. It serves an important hub function that enables customers to have aconvenient and seamless shopping experience without any offline or online boundaries. Through the app, we have strengthened newinteractive points of contact and channels with customers, such as online consultation for curtains and interior design and livecommerce. We are working to create a framework for building ongoing relationships with our customers. To further improve
convenience, we plan to renew the app in 2024.

Number of
NITORIapp members

Reached16.01 million
members

Target for FY 2023
19 million members

13.14
9.08
5.22

41

NITORI has cultivated strengths in developing products andsuggesting coordination through its residential furniture andhome fashion businesses. The Corporate Sales and Interior
Renovation Businesses draw on these strengths to propose
interior design of business spaces for corporate customers
and total renovation services for households, respectively. We
will continue to take on the challenges of the rapidly
advancing digital age, such as online consultation for homerenovation, in pursuit of solutions to customer inconvenience.

To enable our customers to fully appreciate the NITORI MALL
concept of “an abundance of products and affordable prices,”
we created a mix of shops focused on large specialty stores ineach category with the ability to pull in a broad spectrum ofcustomers, including popular stores selling apparel or household
items, and restaurants. By developing the NITORI MALL
business, we will keep on contributing to enriched lifestyles for
local customers.

Nitori Facility Co., Ltd

Nitori Public Co., Ltd.

Nitori Facility is responsible for waste disposal, cleaning andsecurity, as well as for insurance services as an insurance
agency for NITORI Group. Our aim is not only to maintain andmanage facilities, but also to realize optimization for theGroup as a whole, by reducing costs and improve efficiency,
as well as enhance provision of benefits for employees.

As a general advertising company, Nitori Public provides
services to external client companies in a wide range of businessfields. Nitori Public plays its part in enhancing corporate value by
not only advertising and sales promotion business as an in-housecompany of NITORI Group, but by also running the restaurant
chain business, traveling business, operation of Ginrinso (Otaru)
a Japanese style hotel and gift stores of museums and exporting
business, utilizing the Group’s logistics network.

NITORI Dining Everyone’s Grill

16.01

FY 2020NITORI MALL Business

19.00

Unit: million

FY 2019

Corporate Sales and Interior Renovation Businesses

FY 2021

FY 2022

FY 2023NITORI Dining Everyone’s Grill is NITORI Group’s restaurant business, which
Nitori Public started in March 2021. The guiding concept is “to provide service
that offers the unexpected and ensuring customer satisfaction in terms of both
flavor and price.” It procures only carefully selected ingredients, and by ensuring
operational efficiency it has succeeded in developing menus that combine highquality with reasonable prices. The business will continue to develop new andupgrade the menu to achieve NITORI Group’s mission and vision.

42