CO-CREATION
Co-Creation Sustainability Report 2016

Contents

01

ACTION

02

Greetings from the President

ACTION

06 Dialogue 01
	A Flourishing and Inclusive Society Offering
Happiness to All
12

MARUI GROUP’s Idea of Sustainability
13

Four Core Themes

14

Co-Creation with All Stakeholders

MARUI GROUP aims to be a company that
16Core Theme 1
Customer Diversity and Inclusion

provides fulfilling lifestyles for all customers.

17	Future of Japan and MARUI GROUP’s
Role Therein18	Development of Stores Bringing Joy to
All Customers

MARUI GROUP aims to be a company that provides fulfilling lifestyles for all customers

20	Creation of Products that Bring Joy to
All Customers

through its unique business model comprising its Retailing and FinTech businesses.

22	Financial Inclusion of All Customers

The Company has continued to develop its characteristic business model merging retailing
24 Dialogue 02	Potential of MARUI GROUP’s Businessfrom the Perspective of Inclusion

with sales on credit since it was founded in 1931, thereby establishing truly uniquestrengths and a distinctive position in the Japanese retailing industry.


28Core Theme 2
Workplace Inclusion

29 Dialogue 03
		Empowerment of Every Employee throughMutual Understanding
32	Creation of Venues through Which All
Employees Can Excel

34Core Theme 3
Ecological Inclusion
35	Group Effort to Reduce Environmental
Footprint
36

Proposal of Ecologically Sound Lifestyles

38Core Theme 4
Co-Creation Corporate Governance

39 Dialogue 04
		Multi-Stakeholder Perspective Enabling
Challenges in Unexplored Realms

42

Overview of MARUI GROUPMARUI GROUP strives to practice “co-creation management,” which entails working
Co-Creation Management
Report 2016

Co-Creation Sustainability
Report 2016

together with all of its stakeholders to co-create customer happiness. Moreover, we arefocused on the concept of “inclusion” as the key to responding to ever-changing customer

For the fiscal year ended March 31, 2015, MARUI GROUP published
Co-Creation Management Report 2015, its first integrated report forshareholders, investors, and other stakeholders, which was followed up withthe release of Co-Creation CSR Report 2015, a digest report. “Co-creation
management” refers to the type of management for co-creating customer
happiness to which MARUI GROUP aspires. Our co-creation management
reports place more emphasis on management strategies while co-creation
CSR reports focus primarily on the Company’s connection with communities
and the greater society. The Company has published CSR reports every year
since 2008 (some are available in Japanese only). For this latest edition, we
chose the name “Co-Creation Sustainability Report” as an expression of thepassion we have held thus far and our commitment to the future.

needs and social issues and forging a better future.
Through co-creation activities advanced with all stakeholders, MARUI GROUP will
endeavor to help build a flourishing society in which all are included.

www.0101maruigroup.co.jp/english.html
Editorial Policy

In compiling Co-Creation Sustainability Report 2016, we endeavored to makethe report of interest to readers, selecting topics with a focus on important
initiatives based on MARUI GROUP’s business characteristics. In the future,
we plan to create a sustainability page on our corporate website, which wewill continually update with environmental, social, and governance (ESG)
data for use by ESG evaluation institutions and ESG-minded investors alike.

01

Greetings from the President

Promoting inclusion will be an
important theme for us as
we advance toward the future.
In response to social changes, we have adopted a perspective emphasizing environmental,social, and governance (ESG) concerns and defined realizing the type of sustainability advocated bythis perspective as our new goal. Accordingly, we are advancing initiatives to transform
our main business into a socially contributing undertaking with eyes to the future.

Hiroshi Aoi
President and Representative Director
Representative Executive Officer

02

Greetings from the President

1. Commitment to Sustainability and the Future
MARUI GROUP has published a CSR report each year
since 2008. For this latest edition, we chose the name
“Co-Creation Sustainability Report.” This decision was
not just an attempt to shoehorn in a recent buzzword.
Rather, it is an expression of the passion we have held
thus far and our commitment to the future.
You may ask why we changed our focus from CSR tosustainability. One reason can be found in changing
social trends. A trend we are paying particular attention
to is the new emphasis on ESG investment. Investors
have previously tended to view investments from a shortterm perspective, seeing them as a means to make theirmoney work for them. This is especially true in Japan.
The emphasis on ESG investment is an important trend
as it represents an increase in the desire of investors
to endorse good governance and also to value theresolution of environmental and social issues.
The Government Pension Investment Fund, theinstitution with the world’s largest balance of assets,
recently requested that pension fund operators promote
ESG investment. When issuing this request, MARUIGROUP’s Co-Creation Management Report was chosen
as an example of a superior integrated report for
facilitating ESG investment decisions, a fact that was
greatly encouraging.
At MARUI GROUP, we have continued working totransform our main business into a socially contributing
undertaking. As we went about these efforts, however,we were unable to escape the idea that CSR was something separate from our business, something to bepromoted on top of business activities. For this reason,
ESG proved to be a more easily understood evaluation
standard that is more compatible with our desire totransform in this manner.
We thus adopted a perspective that emphasizes ESG
concerns in response to social changes, defining realizing
the type of sustainability advocated by this perspective
as our new goal. We are thus advancing initiatives totransform our main business into a socially contributing
undertaking with eyes to the future based on a timelinethat is even longer than previously used.

2. Transforming Our Main Business into a SociallyContributing Undertaking with Eyes to the Future
Our efforts to achieve sustainability will be detailed inthis report from environmental, social, and governance
perspectives. Rather than focusing on maintaining abalance between these three perspectives, we haveinstead chosen to highlight those areas that we wish totalk most about.

E: Environmental
Reconciliation of Reduction and Profit Improvement
In regard to environmental concerns, we are continuing to
implement the apparel recycling program, but the focusof this program is being shifted from reuse to resource
use reduction.
Apparel is one of MARUI GROUP’s principal productcategories, and some may think that pursuing resource use
reduction with regard to these products would lead to lower
profits. However, I am confident that we can reconcile thiscontradiction between reduction and profit improvement
through our unique initiatives.
MARUI GROUP began offering shoe trade-ins a stepahead of the rest of the industry in 2013. A startlingnumber of customers brought shoes to be traded in, andsome of these shoes had hardly been worn at all.
Wondering why so many customers had so many
unworn shoes, employees staffing the shoe trade-in counter decided to ask. They were shocked by the large numberof customers that had bought shoes based on their design,
but had then given up on wearing them due to a lack of
comfort or pain resulting from size issues.
These employees later transferred to the division
responsible for developing private brand shoes, where they
played a part in creating the Rakuchin Kirei series of shoes,
which have continued to win strong praise from customers
since their launch. More than 3 million pairs of Rakuchin
Kirei series shoes have been sold to date, making this line
an unprecedented hit, and these shoes are now the star of
MARUI GROUP’s private brand lineup. By providing shoesthat not only feature appealing designs but are also03

Greetings from the President

comfortable and match customers’ feet, we should be able
to satisfy our customers while also preventing them frommaking wasteful purchases, effectively contributing toresource use reduction in the process.
MARUI GROUP will take charge in advancing uniqueinitiatives that form an integrated process encompassing
everything from product trade-ins to product development.
These initiatives will further us on our ongoing quest toreconcile resource use reduction with profit improvement.

S: Social
Promotion of Inclusion and Creation of New DemandWith a focus on the inside of the Company, MARUIGROUP has been fostering diversity by promoting­women’s contributions, hiring people with disabilities,
and implementing the profession change system, aunique human resources system that cultivates diversity
in terms of individual talents by allowing employees toexperience various positions within the Group.
Thanks to these efforts, we have been able to earn
recognition in the form of awards from the national
government and various organizations, which will be
explained later on in this report.
Our next step will be to direct these diversity initiatives outside of the Company toward customers andother consumers. Being receptive toward customers’
diversity and promoting inclusion will be an important
theme for us as we advance toward the future.
We have always sought to develop our stores in amanner that ensures they can be enjoyed by all customers,
regardless of their age or gender. Looking ahead to2020, the year of the Tokyo 2020 Olympic andParalympic Games, we will strive to guarantee that a pleasurable store experience can be had by people with andwithout disabilities and by members of the LGBT community and other individuals that do not conform to
traditional gender categories.
As for our products, we are developing apparelproducts, private brands in particular, that can satisfy
customers regardless of their physical characteristics.

04

This undertaking entails going beyond simply focusing
on product design; it emphasizes comfort and, more
importantly, greatly expands the range of sizes available.
The fashion industry has traditionally targeted individuals whose bodies were of “standard” size, developing
and supplying products for them. Those people withlarger or smaller bodies did not have products made forthem. Among the customers we queried with this regard
were many that, due to their small body size, wereunable to find high heels in their size and were thus
forced to wear sneakers. We also spoke to several
customers that wore children’s clothing because there
was nothing in their size. Such concerns are shared bysmall- and large-bodied individuals and members of
the LGBT community.
Examining the reason why the apparel industry only
provides “standard” sizes, one possible reason could beinventory efficiency issues. Increasing the number ofsizes means increasing inventories, which in turn leads tohigher risk of inventory losses and lower profit margins.
This, of course, is an issue MARUI GROUP will need toovercome. We are looking to address this issue by
creating systems that manage individual items in realtime, utilizing in-house distribution centers, developing
omni-channel sales floors that do not require inventories,
and pursuing other innovations.
A society in which only people with “standard” bodysizes can enjoy fashion and in which everyone else isneglected cannot be viewed to be a flourishing society.
For this reason, we will work to expand the range of sizesof our various apparel products and make them more
comfortable to ensure that they can be enjoyed by everyone,
regardless of their physical characteristics. The provisionof such forward-looking fashion products will no doubt
help promote inclusion and create new demand.
With regard to our credit card services, we havepromoted inclusion since the time of the Company’s
founding by developing a unique business model ofproviding credit cards for youths. As we move forward,
we will evolve our credit card services business into a
FinTech business, a move that will greatly increase thebusiness scope. When people think of FinTech, many ofGreetings from the President

them focus on how technologies are used in this field. At
MARUI GROUP, however, we see the fundamental aspectof FinTech as being its mission to promote financial
inclusion by supplying financial services to everyone.
The finance industry has traditionally catered primarily
to the wealthy. However, as FinTech burgeons on the
global stage, companies operating in this field are being
charged with the mission of delivering financial services
that can be used by youths and everyone else, not just thewealthy. MARUI GROUP has taken the initiative in advocating this type of inclusion in Japan’s credit card ­industry.
As such, we can fully endorse this mission. We are thus
working together with FinTech companies and promoting
open innovations to help further financial inclusion thatmakes financial services available to everyone.

G: GovernanceCorporate Governance for All Stakeholders
As for corporate governance, in April 2016 we halved thenumber of internal directors from eight to four, making
for a slim Board of Directors in which the two external
directors represent one-third of the entire membership.
This move allowed for better progress in discussionsof management issues that delve deeper into the issues
at hand.
In addition, we established the IR Department in
October 2015 to facilitate efforts to co-create ourcorporate value together with shareholders and otherinvestors. This was followed by the establishment of
the ESG Promotion Department in October 2016,
which is meant to enhance non-financial information
disclosure and other activities for communicating withlong-term investors.
We are also implementing other improvements to our
corporate governance systems and how they are operated
with the goal of making MARUI GROUP an expert on theforefront of governance. For more information, I would
like to refer readers to Co-Creation Management Report
2016, the discussion between our two external directors
in particular.

While we are still in the process of determining whatsteps we should take next, we do know that we want toevolve the General Meeting of Shareholders. Much progress has been seen in evolving the boards of directors ofJapanese companies, MARUI GROUP included. However,
the general meeting of shareholders, which functions as
the highest authority within companies, still remains
unchanged at many companies, leaving much room for
improvement. With regard to discussions with private
shareholders, for example, it seems possible that small
meetings could be held with these shareholders in asimilar fashion as is done with institutional investors.
Looking at boards of directors, in some countries,
such as Germany and Sweden, employee representatives
attend board meetings, and some companies havecustomer representatives participate as part of an advisoryboard. At MARUI GROUP, we view corporate value as
being born out of the harmony between the interests andthe happiness of all of our stakeholders. We thus believethat corporate governance systems should be madefor the sake of all stakeholders. The Company will work
to promote stakeholder inclusion to realize suchgovernance systems.
Most of all, we realize that the aid of all of our stakeholders will be indispensable in resolving the issues
MARUI GROUP faces and in furthering its evolution.
I would therefore like to ask that readers of this reportfeel free to offer any opinions and requests you may
have. We hope to make MARUI GROUP into a better
company by engaging with our stakeholders, and I hope
we can look forward to your support in the future.

November 201605

A Flourishing and Inclusive Society Offering Happiness to All

Dialogue

01

A Flourishing and Inclusive
Society Offering Happiness to All

A Flourishing and Inclusive Society Offering Happiness to AllMARUI GROUP hopes to contribute to the realization of a flourishing society in which
everyone can be included and find happiness regardless of their age, gender, or
physical characteristics. This was the theme of the discussion between Toshiya Kakiuchi,
a universal design specialist that advocates the concept of “Barrier Value,” or viewing
disabilities as a type of value; Fumino Sugiyama, an organizer of Japan’s largest LGBT
pride event; and President Hiroshi Aoi of MARUI GROUP. These three discussed thepotential of inclusion and the role MARUI GROUP should play in this regard.

Toshiya Kakiuchi
President, Mirairo Inc. (left)

Fumino Sugiyama
Co-Representative
Nonprofit Organization TOKYO RAINBOW PRIDE (center)

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

06

Dialogue 01

Discussion at irodori restaurant owned by Mr. Sugiyama in October 2016
irodori-newcanvas.com/ (Japanese only)

Dialogue 01

07

A Flourishing and Inclusive Society Offering Happiness to All

A Flourishing and Inclusive Society Offering Happiness to All

Dialogue

01

A Society Offering Happiness to All
Aoi: MARUI GROUP has decided to shift its emphasis
from CSR to sustainability. The concept of “inclusion” will be
important to achieving sustainability. We have previously
evoked this concept with phrases like “for all customers.”
For example, we feel that shopping experiences andservices should be enjoyable for all customers, not just aselect few. If we cannot accomplish this, society cannot
be said to be truly flourishing. Including all customers,
regardless of their age, gender, or physical characteristics,
will be crucial to the society of the future. I believe that
there is a lot of overlap to be found between businesses
that offer joy to all customers and universally open
societies that provide happiness for all.
Sugiyama: What turned you on to this idea of “for all
customers”? When you, President Aoi, requested that
I give a lecture on the idea of “for all customers,” I wasvery glad. In the past, I had felt like I was not included
within the “all.” As I do not identify as traditionally male orfemale, people would pretend that I did not exist, even
if they were aware of my existence. If I did not speak up,
no one would understand my needs. This situation mademe feel as if I was invisible. Now, however, I truly feel as
though we are entering into an era in which people likeme are included within the “all.”Aoi: In the past, MARUI GROUP had primarily focusedon younger customers. However, I could not help but
feel opposed to this idea of excluding some customers.
Companies should not be selective in their target customers, but should rather try to bring joy to as manycustomers as possible. When I thought about this,I arrived at the idea of “for all customers.”
Kakiuchi: So you mean to say that there was some basis
for your arrival at this idea, such as an ideological stancethat people with disabilities and members of the LGBT
community should be included in the “all.” I believe thatMARUI GROUP’s current inclusion initiatives are truly
symbolic. The way in which society views different
individuals is changing. When people talk about mywheelchair in the same manner they might talk about
someone’s shirt, it makes me realize how much people
like me have come to be accepted by society.
Aoi: When you told me that story, it made me very
happy. It is reassuring to hear that you are accepted inthis way. I feel that my world has begun to grow muchwider, encompassing realms I had not known before,
after speaking with both of you and hearing your uniqueperspectives, and this feeling fills me with excitement
and joy.

“I ask people to tell me if there is anything
they do not understand about me, butwhether or not this communication occurs
is determined by whether or not they takeinterest in others.”
Fumino Sugiyama

08

Dialogue 01“I think true inclusion only occurs when it
is natural, or nonchalant, not when you go
out of your way to give someone special
treatment.”
Toshiya Kakiuchi

A Tomorrow in Which Labels Are
No Longer Necessary
Aoi: I previously wondered why, despite the fact that thedesire to help all customers was entrenched throughout
MARUI GROUP, we did not get many customers inwheelchairs or with vision impairments. I soon realized it
was because we did not actively reach out to these customers and invite them into our stores. It was then that
I pledged to make our stores into the type of stores that
all customers choose.
Kakiuchi: Japanese people tend to be a bit perfectionist,making it difficult for people to announce that their facility
is equipped to accommodate differently abled individuals.
For this reason, there are times when exceptional accessibility initiatives go unannounced, never reaching theears of the individuals they seek to include or their families.
It is not necessary for your accessibility initiatives to be
perfect. If you want to include normally excluded
individuals, your first step should be to express thosefeelings. Many will be inspired to visit your store by
those feelings.
Sugiyama: Similarly, the allies that strive to understandand support the LGBT community are often invisible. The
more progressive the company, the more they see suchsupport as completely normal. These companies will not
go out of their way to say “I am your ally.” I too do not liketo make distinctions between the majority and minorities,

but if you do not make this clear, no one will know.
We must use the label “LGBT” today in order to createa tomorrow in which this label is no longer necessary.
Kakiuchi: The label of “person with disabilities” is thesame. The idea of categorizing people based on whether
or not they have a disability may be nonsense, but there
are times when this distinction must be made in order toresolve the issues we face. I hope to work together witheveryone to create a society in which my using a wheelchair does not make me “different,” but is rather seen ascompletely normal, a society in which there is no need tomake a distinction between those with disabilities andthose without.

Transition from an Age of Strength from Similarities toan Age of Strength from Differences
Sugiyama: The past was an age in which people drew
strengths from their similarities. The so-called Japanese
economic miracle was a period of growth built upon
conformity. However, we are now entering into an age inwhich differences should be seen as strengths. No one is
the same, and it is these differences that make life
interesting.
Aoi: I too believe that life is more interesting because weare different. I often speak of how interesting diversity
makes things. This is because I feel it is important to findDialogue 01

09

A Flourishing and Inclusive Society Offering Happiness to All

A Flourishing and Inclusive Society Offering Happiness to All

Dialogue01

joy in the differences of others, rather than just promoting
diversity because of some kind of duty. By embracing thechanges that have occurred and promoting further
changes ourselves, we can build a different society.
Kakiuchi: Building tolerance for differences takes time,
and tolerance can only be fostered through familiarity,
which must be cultivated by means of frequent interaction.
Speaking with you two today has made me once again
realize the importance of telling the world of tomorrow
about the power of differences and how interesting
they make life.
Sugiyama: I think we need to change the mentality ofacting “for minorities.” A society that is kind to minorities
will no doubt also be kind to the majority. Thus, addressing
the needs of minorities will also likely help resolve theissues faced by majorities.
Aoi: That is an interesting idea. In the past, it seemed as
though the world revolved around the majority. This wasparticularly true in the period of the Japanese economic
miracle, when difficult times drove Japan to focus on thegroup with the largest numbers. This approach helped
Japan prosper in the past, but the country has stopped
growing today. Regardless of this fact, the majority still
remains the focus. This seems strange to me. I canunderstand focusing only on the largest group whentimes are tough. However, when the immediate perils

have been overcome, it is time to look to the prosperityof others. If we do not do this, what was the point ofachieving prosperity in the first place?

Normalization of Inclusion
Kakiuchi: I often use the word “nonchalant.” I think true
inclusion only occurs when it is natural, or nonchalant,
not when you go out of your way to give someone special
treatment. For example, when MARUI GROUP expanded
the range of sizes for its products, it naturally included
people of sizes not seen as “standard.” If people andcompanies adopt this approach when they consider
previously marginalized people, I think the idea of inclusion
will eventually become normalized.
Aoi: I do not like the word “disability,” and I have recently
been trying to say “physical characteristics” instead.
Some may not like my lumping disabilities in with bodysizes, but I believe these two categories are similar inthat they are both ways in which we are all different.
Kakiuchi: I think that such approaches will help foster
familiarity and acceptance more easily.
Sugiyama: I believe that familiarity is at the heart of thistype of acceptance. If something is unfamiliar, people
tend to erect mental barriers that make it difficult to say“I often speak of how interesting diversity
makes things. This is because I feel it isimportant to find joy in the differences ofothers, rather than just promoting diversity
because of some kind of duty.”
Hiroshi Aoi

10

Dialogue 01“I don’t understand this.” A person in a wheelchair, forexample, is only inconvenienced when they come acrosssteps, and can get around normally otherwise. For thisreason, you could take the perspective that the disability
comes from society, and not from the individual. It is
crucial to share such perspectives with others.
Understanding this perspective requires knowledge,
which means that the number of opportunities to gainsuch knowledge is quite important. I ask people to tellme if there is anything they do not understand about me,
but whether or not this communication occurs is determined by whether or not they take interest in others.

Toshiya Kakiuchi
President, Mirairo Inc.
Mr. Kakiuchi was born in Nakatsugawa City, Gifu Prefecture in 1989.
He established Mirairo in 2010 while attending the College of Business
Administration at Ritsumeikan University. One in three of Mirairo’s 35
employees have some kind of disability. From the perspective of “Barrier
Value,” turning a disability into a value, Mr. Kakiuchi offers universal
design consulting services to companies, municipal government
agencies, and educational institutions. In 2015, he became an advisor
to the Nippon Foundation Paralympic Support Center. He was thenappointed as an advisor to the Tokyo Organising Committee of the
Olympic and Paralympic Games in 2016.

Mirairo conducts investigations offacilities, products, apps, andother various articles andproposes improvements from theperspective of “Barrier Value.”

Mutual Progress to Turn Barriers into Value
Kakiuchi: There are several barriers that are created byignorance, but I feel that the way society approaches
such issues is changing as of late. In fact, it may be us
who are not quite used to this change yet. If ignorance isreplaced with knowledge and “cannot” is replaced with“can,” then I think that the majority and minorities canmake mutual progress and bridge the gap between eachother. I use the word “Barrier Value” to refer to the idea
of taking some kind of disability and turning it into somekind of value. We should not use disabilities as reasons
to hurt others or impose ourselves on others. Rather,
it is important to clarify the mutual value we present to
one another.
Sugiyama: Marginalized individuals may not always beaware of it, but they can sometimes internalize prejudicesor be slightly discriminatory toward society on the basisthat society discriminates against them. What you said
now made me think that, indeed, there may be a degree
to which we ourselves are not used to society being used
to us. I believe that both previously marginalized individuals and the majority want to build relationships witheach other that allow them to mutually propose how theyshould interact, including with regard to such distinctions.
Aoi: Japan is entering into a new era, and in this era it will
be important for both the largest group and other groups
to flourish. I see you two as the type of individuals thatwill herald this change in the new era. I hope to work
together with you in building a new society going forward.

Dialogue 01

Mr. Kakiuchi gives lectures at
educational institutions as well ascompanies, and these lectures area required part of the curriculumat Shinagawa Joshi Gakuin.

Fumino Sugiyama
Co-Representative
Incorporated Nonprofit Organization TOKYO RAINBOW PRIDE
Representative, Heart wo Tsunagou Gakko
Mr. Sugiyama is a transgendered individual born in 1981 that previously
represented Japan in women’s fencing. While in university, he wrote
Double Happiness, which garnered much attention, eventually beingtranslated into Korean and converted into a comic. After graduation, heembarked on a backpacking voyage, visiting around 50 countries andwitnessing the social issues therein. Back in Japan, he now manages
his own restaurant while also holding positions as co-representativeof TOKYO RAINBOW PRIDE and representative of Heart wo Tsunagou
Gakko, a nonprofit organization offering support for children that identify
as sexual minorities. His other diverse activities include giving lectures andhosting a television program. Mr. Sugiyama helped establish Shibuya’s
ordinance recognizing same-sex partnerships, the first of its kind inJapan, and now serves on Shibuya’s committee for promoting genderequality and diversity.

Mr. Sugiyama is a co-representative of TOKYO RAINBOW PRIDE,
which holds Japan’s largest
LGBT pride parade as well asother events throughout Japanin early May.

11

MARUI GROUP’s Idea
of Sustainability

MARUI GROUP’s Idea
of Sustainability

We will achieve harmony
between the happiness ofall stakeholders through inclusion.
MARUI GROUP has turned its attention to the conceptof “inclusion” to facilitate its efforts for providing fulfilling
lifestyles for all customers. Inclusion entails including andreaching out to all those who have previously been excluded.
Our idea of sustainability requires that no one be
excluded and that everyone be able to enjoy quality
living, health, and prosperity. With similar goals in mind,
international society adopted Transforming our World:
The 2030 Agenda for Sustainable Development at
the United Nations General Assembly, convened in
September 2015. This agenda included the Sustainable
Development Goals (SDGs), a set of 17 goals with 169

targets that have been embraced by Japan and
192 other countries worldwide.
Inclusion, or excluding no one, is part of the spirit of
the SDGs, meaning that these goals point us in the same
direction as adopted by MARUI GROUP’s management,
which seeks to achieve harmony between the interests
and the happiness of all stakeholders. Throughco-creation activities with all of its stakeholders, MARUIGROUP will actively contribute to the accomplishmentof the SDGs through its business to help create aflourishing society in which everyone is included.

Four Core Themes
MARUI GROUP has defined four core themes based on the perspective of inclusion thatit believes will further it as a company providing fulfilling lifestyles for all customers.

Core Theme 1

Customer Diversity and Inclusion

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

Core Theme 2

Workplace Inclusion

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 thedevelopment of our company,” we will provide all
employees with venues through which they can excel.
Core Theme 3

Ecological Inclusion

We will develop eco-friendly businesses that areconsiderate of natural capital and propose ecologicallysound lifestyles that are in harmony with nature and theenvironment.

Core Theme 4

Co-Creation Corporate Governance

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

Process for Establishing Core Themes
Focusing our concept of co-creation management and the impact this approach will have on society, the environment, and natural
capital, we examined the issues and opportunities this approach will create, based on which we defined four core themes for initiatives
from the perspective of inclusion. In formulating these themes, we held meetings with 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. In addition, we referenced the ratings of ESG evaluation institutions; internal and external guidelines, such as those of
the Global Reporting Initiative, ISO 26000, the Sustainability Accounting Standards Board, and the International Integrated Reporting
Council; and the SDGs.

12

13

MARUI GROUP’s Idea
of Sustainability

MARUI GROUP’s Idea
of Sustainability

Co-Creation with All Stakeholders
MARUI GROUP has a corporate culture of listening
to customer input that dates back to its founding.
Dialogue with customers and other stakeholders is
exceptionally important to co-creation management,
and we seek to always make communication
constructive, never marginalizing others’ opinions.
Such dialogue is crucial to achieving harmony

between the interests and the happiness of all
stakeholders. We must continue innovating ourbusiness frameworks and practices in order toincrease the intersection between stakeholderinterests and happiness. This is MARUI GROUP’s
approach toward innovation and its vision for
co-creation management.

Co-Creation with Customers

Co-Creation with Shareholders and Other Investors

The planning meetings we hold with customers are not just avenue for soliciting customer feedback; they are a co-creation
activity that invites customers to take part in the value­creation process for developing stores and products that all
customers choose.

We established the IR Department in October 2015, and,in one year, we met with approximately 300 institutional
investors, including those overseas. We then formed the ESG
Promotion Department in October 2016, through which we areenhancing communication with ESG-minded investors and thedisclosure of ESG information.

MARUI GROUP’s View of Corporate Value
Planning Meetings Held with Customers

Customers

More thanInstitutional Investors Met with600

Approx.

(Fiscal year ended March 31, 2016)

Customers Performing Sample Checks

Shareholders Attending General Meeting of Shareholders

1,000 per year

Approx.

(For Rakuchin Kirei series of shoes)

Business
partners

Investors
Harmonization of
stakeholder interestsand expansion ofintersection

Communities andSociety

300(For planning Hakata Marui)

470(June 2016 meeting)

Co-Creation with
Business Partners

Co-Creation with
Employees

Co-Creation with
Communities and Society

The MARUI GROUP Procurement
Policy was formulated in April 2016,
and we conduct surveys and on-site
investigations together with business
partners to ensure a stable supply of
products and confirm partners’ humanrights and work environment initiatives.

Our intra-Group project teams,
including the Diversity Project Team,
Marui Future Project Team, Healthcare
Promotion Project, Medium-Term
Management Visionary Committee,
and other such forums, provide
opportunities for employees todiscuss and share thoughts withindividuals from other companies.

MARUI GROUP participated in the
TOKYO RAINBOW PRIDE 2016 LGBT
pride event, held a regional development event that blended the popular
anime series Osomatsu-san with alocal shopping district, and worked toincrease the number of EPOS card
collaboration partners.

Employees©FA/O

Business Partners Participating in
Explanatory Forums

Approx.

100(Fiscal year ended March 31, 2016)14

Employees Participating in
Intra-Group Project Teams

Approx.

320(Fiscal year ended March 31, 2016)

Aggregate number of customers attending “OSOMATSU ICHI in Miyazaki” event

10,000(March 17 – April 6, 2016)

15

Core Theme 1

Core Theme 1

Customer Diversity and Inclusion

Customer Diversity and Inclusion

CORE THEME

1 Customer Diversity and Inclusion
MARUI GROUP Core ThemeACTION

Future of Japan and MARUI GROUP’s Role Therein

MARUI GROUP’s Goal

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

Safety andsecurity

The Marui Future Project Team is a committee tasked
with thinking about the future of Japan and MARUIGROUP’s role in this future. Employees participating inthis committee do so as representatives of their store,
site, or division. Taking the insights and ideas gained
through the committee back to their normal position,
employees formulate action plans that propose initiatives
for their division to use in contributing to store
development, product creation, or FinTech operations.
As members change each year, the committee gives birth
to new autonomous employees with increased insightand awareness on a yearly basis. The committee thus
helps cultivate a corporate culture that is conducive toinnovation for transforming our business into a sociallycontributing undertaking.

Excitement

Happiness of
all customers

Marui Future Project Team meeting

Ease of use

Internet

Among developed countries, Japan is seen as particularly plagued with such issues as a declining birthrate
and an aging population. Nevertheless, Japan has a population of approximately 127 million diverse
individuals. If we adopt a perspective of creating spaces in which all people can flourish, the issues faced by
Japan could be turned into opportunities. MARUI GROUP strives to develop a business that creates
innovation for the benefit of everyone, effectively transforming such opportunities into value. This is the goalof our customer diversity and inclusion initiatives.

16

Themes Discussed by
Marui Future Project Team 2016

Diversity and Inclusion
MARUI GROUP aims to be a leader
in developing products, services, and stores that bring joy
to all customers, regardless of their age, gender,or physical characteristics.

Diversity Week One week in November
2016 was designatedas Diversity Week at
MARUI GROUP’s head
office. During this week,
a display was exhibited
Display exhibited at head office entrance
at the office’s entrance
during Diversity Week
that sought to foster
understanding and support for the LGBT community with thetheme of “a society in which everyone can be themselves.”

Employee Comment

Mayu Ueda (left)
Chiharu Sato (right)
Marui Future Project Team
Members,
Kyoto MaruiMARUI CO., LTD.

Growth Driven by Our Evolution
We learned of the LGBT community by participating in the Marui Future Project Team. Upon
returning to our store, we wondered how we could communicate our desire to welcome these
individuals. The most important thing, we realized, was to make sure customers could have apleasant shopping experience. We took steps including stocking larger sizes for all models of shoes
on sales floors and setting up information desks in break rooms to help inform employees andtenants about the LGBT community. Our passion to bring joy to all customers spread throughout
the store, and is now a unifying force here at Kyoto Marui. We were particularly happy when anewer member of the store staff signed up to join the Marui Future Project Team. This experience
made us realize that, just as described in the corporate philosophy, if we continue to evolve, thisevolution will spread throughout the Company, driving its growth.

17Core Theme 1

Core Theme 1

Customer Diversity and Inclusion

Customer Diversity and Inclusion

Development of Stores
Bringing Joy to All Customers
MARUI GROUP strives to help all customers enjoy shopping at its stores, regardless of their age or gender, and thissentiment of course extends to senior citizens, people with disabilities, non-Japanese people, and members of the LGBT
community. We are thus working to develop comfortable stores from the perspectives of store environment and empathy.

Issues Faced by Shopping Centers
Developing comfortable stores requires tracking the issues
faced by shopping centers in terms of both store environ­ment and empathy (customer service) and addressingthese issues to ensure enjoyable shopping for all.

Store Environment
Difficulties Faced in Shopping Centers

Co-Creation with Customers
We are implementing universal design concepts at Maruiand Modi stores throughout Japan. For example, whendeveloping Hakata Marui, we incorporated the input ofvarious sources, such as Kyushu University and Lifestyle
Design Lab. These organizations helped us identify
issues faced by people with disabilities at shopping
centers through workshop-style investigations, and we
also received feedback from various individuals for input
in store development.

Individuals experiencing difficulty using
restrooms and other facilities

Improvement of Customer Service
Employees undergo Service Care-Fitter training to fostera spirit of hospitality and to learn how to accommodate
various customers. This training is conducted in-houseby nine Group employees that have acquired instructor
qualifications. In addition, external lecturers are invited to
implement rank 2 and 3 training for the Universal Manner
Placement Examination program and to perform LGBT
manner training. In addition, employees receive training
on catering to the needs of inbound travelers performed
by non-Japanese lecturers. With the skills gained, we aim
to improve customer service in order to foster anenvironment in which all customers can enjoy shopping.

Participation in LGBT Pride Eventsand Support for Para-Sports
Beginning with Marui and Modi stores located in Shinjuku
and Shibuya, participation in LGBT pride events, such as
RAINBOW PRIDE and RAINBOW FESTA, spread to storesin the Kansai, Hakata, and other areas, with nine storesnationwide participating by hanging rainbow flags on theoutside of buildings and otherwise showing support.
In addition, Shibuya Marui and Modi held an event incollaboration with Be The HERO, a video created topromote para-sports in Tokyo. We stirred up excitementin Shibuya through means such as showing the video on
a big-screen display.

In training for assisting customers using wheelchairs, employees
learn how to operate wheelchairs through actual use.

Shibuya Modi during TOKYO RAINBOW PRIDE 2016
event period

Employees wear special goggles to show how objects appear tosomeone with cataracts in senior citizen simulation training.

Booth set up outside of Hakata Marui during KYUSHU RAINBOWPRIDE 2016 event period

34%	Based on Survey of Measures for Accommodating
People with Disabilities (2007) and Surveyof Senior Citizens and Nursery School and
Preschool Users (2007) from the Cabinet Office

The heights and functions of chairs oneach floor were changed to offer
comfort to various customers.

Signs displaying distance to restrooms
were installed to offer peace of mind tosenior citizens and customers using
wheelchairs.

Customer Service
Reason Support Cannot Be

Employee Comment

Provided to People with Disabilities
Individuals citing lack of understandingof necessary techniques

57%

Charging spaces equipped with outlets
were established to provide peace ofmind to customers shopping using
electric wheelchairs.

Audio guidance is offered on the firstand second floors in part to guidecustomers with vision impairments.

	Based on Opinion Survey of People with
Disabilities (2012) from the Cabinet Office

Satoko Suzuki
Space Produce Department
AIM CREATE CO., LTD.
Customers using wheelchairs wereinvited to participate in planning meetings.

18

Mirairo inspected facilities to verify
ease of use.

An Enjoyable, Barrier-Free Environment for Everyone
People tend to think of universal design as providing standardized items that can be used byanyone. However, the original purpose of universal design is to be considerate of and address
people’s individual needs, regardless of whether or not they have a disability. At Hakata Marui, forexample, we placed chairs with armrests to make it easier for customers with weak legs to stand up
and also established rest spaces where customers can rest while leaning rather than sitting. This
store environment is considerate toward customers with disabilities, senior citizens, and a wide
range of other customers. I also see the concept of “inclusion” as having consideration for every
individual. While we may not be able to satisfy the desires of all customers, our first step should be
to build a store environment that customers choose. It is my wish to develop a barrier-free store
environment that can be easily enjoyed by everyone.

19

Core Theme 1

Core Theme 1

Customer Diversity and Inclusion

Customer Diversity and Inclusion

Creation of Products that
Bring Joy to All Customers
MARUI GROUP views product creation as the process of developing products that match the physical characteristics ofcustomers. 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 include and provide joy to
all customers and to forge a business model that creates new demand.

Customer Participation in Product Development
At the time when development of the Rakuchin Kirei seriesof shoes was first started, a survey of EPOS cardholders
indicated that around 90% of them had felt discomfort
with their shoes. This survey made it clear that customers
were unable to find pumps satisfying all of their needs
with regard to fashion, comfort, and affordability. We thus
vowed to create just such shoes. We began by measuring
customers’ feet and analyzing the results to make original
shoe trees. We then held product development meetings
together with customers that had expressed dissatisfaction
with the comfort of their shoes.

Needs Related to Shoe Sizes
The foot sizes of adult women in Japan are said to range
from 20.5 cm to 26.0 cm. However, the standard rangeof shoe sizes offered by the Japanese apparel industry isfrom 22.5 cm to 24.5 cm, which covers only 72% of thisrange of foot sizes. With the Rakuchin Kirei series ofshoes, we expanded the range of sizes we offer from
7 sizes to 16 sizes, covering foot sizes from 19.5 cm to27.0 cm, in order to accommodate customers wanting tobuy shoes that were previously unable to due to their
physical characteristic of having small or large feet. The
Rakuchin Kirei series now covers 100% of Japanese footsizes, allowing it to provide joy for all customers.

Try-On Stores Serving Customers Nationwide
Try-on stores are short-term events held at shopping
centers, including those other than Marui and Modi
stores, throughout Japan to encourage customers topurchase Rakuchin Kirei series shoes. Samples of all
shoe sizes are displayed to allow customers to verify the
comfort of these shoes at their own leisure. Moreover,these stores address an issue behind the shoe industry’s
choice to offer only “standard” sized shoes: that expanding
size ranges means increasing inventories, which lowers
profit. By operating try-on stores, which feature low fixed
rent and do not require inventories, in an integrated manner,
we aim to deliver joy to as many customers as possible.

Inclusion and New Demand Creation
A large portion of customers purchasing shoes at try-on
stores were buying newly introduced sizes (19.5–22.0
cm, 25.0–27.0 cm). The world is filled with people with adiverse range of physical characteristics, including smallbodied men, large-bodied women, and members of theLGBT community. In its product creation ventures,
MARUI GROUP aims to provide fulfilling lifestyles for all
customers while also creating products that are feasible
from a business standpoint. By expanding the size ranges
and improving the comfort of various products, we hopeto supply products that bring joy to all customers in orderto promote inclusion and create new demand.

Try-On Stores Held in 27 Locationsin 20 Prefectures Nationwide
Comparison of Sales in(April–October 2016)

Marui Stores and Try-On Stores
Customers purchasing newly introduced sizes*
Niigata: CoCoLo Nagaoka

Aomori: Lovina,
Aomori Station Building

Ishikawa: KORINBO TOKYU SQUARE

Iwate: FESAN,
Morioka Station Building

Osaka: KUZUHA MALL

Fukushima: S-PAL Fukushima

Hiroshima: Kamiyacho Shareo

47%

27%→
Marui stores

Try-on stores*19.5–22.0 cm, 25.0–27.0 cm

Customers over 40

Expansion of Shoe Size Range
to Cover 100% of Foot Sizes

Chiba: unimo Chiharadai
Shizuoka: Aeon Mall Hamamatsushitoro

Customers’ Shoe-Related Concerns

Aichi: Aeon Mall Kisogawa
Nagoya Central Park

Customers that stopped wearing shoes
due to poor fit or pain

65%

44%→
Marui stores

Try-on stores

Kagawa: Aeon Mall Takamatsu

41%

Kagoshima: AMU PLAZA KAGOSHIMA

Current Rakuchin Kirei series shoes lineup
100% coverage

Shoes owned by women that go unworn

New sizes

30%

New sizes

Employee Comment

Previous Rakuchin Kirei series shoes lineup
98% coverage

Based on 2013 survey of EPOS cardholders

Standard
industry shoe
size range
72% coverage

19.5cm20

20.5cm

22.5cm24.5cm

26.0cm

27.0cmNatsumi Iwasa
Leader, Development &Sales Section,
Omni-Channel Retailing Division
MARUI CO., LTD.

Delivery of Marui Products to Customers in Regions without Marui or Modi Stores
Try-on stores are often set up in regions without a Marui or Modi store, providing opportunities forvarious new customers to experience our Rakuchin Kirei series of shoes. Many customers lookforward to these events and some travel great distances to come, which provides a source of
motivation. Considering that our mission is to serve our customers, I believe that having
representatives from internal product development divisions as well as from divisions that do notnormally interact with customers, such as logistics, tablet development, and FinTech divisions,meet with customers can help further the evolution of our product development ventures andservices. Try-on stores are a completely new method of selling, a departure from conventional
practices advanced by the Group in an integrated manner. Going forward, I hope to make thesestores into venues for taking on new challenges while working together with everyone.

21

Core Theme 1

Core Theme 1

Customer Diversity and Inclusion

Customer Diversity and Inclusion

Financial Inclusionof All Customers

Financial Services in Our Daily Lives

Smartphone Payment Service—Origami Pay
In August 2016, Shibuya Modi introduced the Origami Pay service. This
service lets consumers use theirsmartphone like a wallet.

Money Seminar

Learn

MARUI GROUP is supported by the aggregate total of 200 million customers that visit its 29 stores each year as well
as more than 6.3 million EPOS cardholders. One of our missions is to provide financial services that help realize
fulfilling lifestyles to youths and all other customers.

Encourage

Lend

Increase

Circumstances Surrounding FinTech
The focus of consumers is shifting away from valuing
physical goods to placing more emphasis on fulfilling
lifestyles. Moreover, the advancement of information andcommunications technology (ICT) is making financial
services more readily available to everyone.

Japan’s High Rate of Savings
Ratio of Japan’s total of ¥1,746 trillion inpersonal financial assets that is in savings

52.7%

Transition from Credit Card Services to FinTech
The term “FinTech” is a portmanteau of finance andtechnology and is used to refer to a category of new
finance services that utilize cutting-edge IT to deliver
greater convenience. MARUI GROUP sees the fundamental goal of FinTech as being able to supply financial
services to customers that are not able to take advantageof traditional financial services. In other words, it is
FinTech’s mission to promote financial inclusion by
supplying financial services to everyone. In this respect,
one of MARUI GROUP’s missions is to provide financial
services that help realize fulfilling lifestyles to youths andall other customers. We thus chose the transition fromcredit card services to FinTech, redefining our operationsin this area from a forward-looking perspective.

	Source: Flow of Funds – Overview of Japan, theUnited States, and the Euro area –, Bank of Japan, 2016

DonatePlatform
Save

PrepareConserve

Borrow
Pay

Receipt of 16th Porter PrizeMARUI GROUP’s credit card
services business was awarded the16th Porter Prize. The rationale forour selection included a highevaluation of factors such as how
we ensure the convenience ofcredit card issuance in recognitionof our cards’ position in supporting retail, how our cards arelargely held by customers under 30 due to our policy ofbuilding creditability together with customers, and the large
ratio of revolving payment usage.

New Style of Asset Management—THEO
THEO is Japan’s first proprietarily
developed automated asset
management advisor. This service
instantly proposes an optimal combination of listed investment trusts
from approximately 6,000 candidates worldwide and then manages
user assets. We plan to provide this service to EPOS
cardholders interested in asset management.
Money Seminar for EPOS Cardholders
We held a Money Seminar for EPOS cardholders
conducted by a financial planner. Of the some 2,900
customers that applied for the seminar, 82.9% were
under 30. We randomly selected roughly 500 applicants
to participate, and around 290 of these customers
underwent individual consultation, with some enrolling ininsurance. This seminar verified the high level of interest
in financial services among youths.

→ See page 43 for more information on awards received.

Wealthy

Employee Comment

Rate of Internet Shopping Usage
Ratio of two-or-more-person households
in Japan that utilize Internet shopping
services

Youths27.6%

Miu Masutani
Leader,Card Application Center,
Yurakucho MaruiMARUI CO., LTD.

Source: White Paper: Information and Communicationsin Japan 2016, Ministry of Internal Affairs andCommunications

Provision of financial services to youths and all other customers

22

Employee Comment

The type of joy sought by eachcustomer that comes to our card
application centers is different.
As I explain our services tocustomers, I often feel that mywords resonate with them when
I describe how I felt in a similar
position. I think application
centers should be venues for us
to ask customers what is needed
for the joy they seek and thenattempt to provide this joy.
Please feel free to stop by one of
our application centers on yournext shopping trip.

Kei Kotani
Sales Promotion Section 2,
Sales Promotion Division,
Sales Department
Epos Card Co., Ltd.

Our EPOS card lineup includes
collaboration cards offeredthrough arrangements with ourbusiness partners. As we build
trusting relationships with partners, we often discuss how
EPOS cards can be used toprovide joy to customers. In
terms of payment services,credit cards are just one tool thatcan be used. I want to go further
than payment services, working
together with partners to offer
even more convenient services
to customers through cards.

23

Potential of MARUI GROUP’s Business from the Perspective of Inclusion

Potential of MARUI GROUP’s Business from the Perspective of Inclusion

Dialogue

02

Potential of MARUI GROUP’s
Business from the Perspective of Inclusion
As a provider of fulfilling lifestyles, MARUI GROUP strives to include all
customers, regardless of their age, gender, or physical characteristics. We
are thus committed to developing products, services, and stores that canbring joy to a wide range of customers.
On the following pages, we will recount a discussion held between theleaders of MARUI GROUP’s Retailing and FinTech businesses, in which
they discussed the inclusion initiatives being implemented in their­businesses, the issues faced in this regard, and the potential for i­ntegrated
Group businesses.

Yoshinori Saito

Hajime Sasaki

Senior Executive Officer (left)
President and Representative Director, Epos Card Co., Ltd.

Senior Executive Officer (right)
President and Representative Director, MARUI CO., LTD.

Mar. 1986 Joined the Company

Mar. 1986 Joined the Company

Jul. 2008	Executive Officer
General Manager, Financial Department

Oct. 2007	Director and General Manager,
Card Planning Division, Epos Card Co., Ltd.

Apr. 2011	Director and General Manager,
Direct Marketing Department, MARUI CO., LTD.

Apr. 2012	Director and General Manager,
Private Brand Department,
MARUI CO., LTD.

Apr. 2013	Director and General Manager,
Collaboration Card Business Department,
Epos Card Co., Ltd.
Oct. 2013	Director and General Manager,
Sales Promotion Department, Epos Card Co., Ltd.
Apr. 2015	Managing Director, Epos Card Co., Ltd.
Director, M & C SYSTEMS CO., LTD. (Incumbent)
Apr. 2016	Senior Executive Officer (Incumbent)
President and Representative Director,
Epos Card Co., Ltd. (Incumbent)
Director, MRI Co., Ltd. (Incumbent)

24

Dialogue 02

Apr. 2013 Executive Officer
Apr. 2014	Managing Director and General Manager,
Specialty Store Department, MARUI CO., LTD.
Jun. 2014	Director
Apr. 2015	Director and Senior Executive Officer
Responsible for Retailing and Store Operation Business
Senior Managing Director, MARUI CO., LTD.
Director, Epos Card Co., Ltd.
Apr. 2016	Senior Executive Officer (Incumbent)
President and Representative Director,
MARUI CO., LTD. (Incumbent)

Dialogue 0225

Potential of MARUI GROUP’s Business from the Perspective of Inclusion

Potential of MARUI GROUP’s Business from the Perspective of Inclusion

Broadening of Focus to “Inclusion”
After Entrenching “For All Customers”
Sasaki: I think it was around 2007 when President Aoi
began using the phrase “for all customers.” At the time,
we were limiting our scope of target customers byfocusing primarily on providing fashion to youths. Later,
we had customers participate in the development
process for the Rakuchin Kirei series, which hit store
shelves in 2010. I believe this experience is what
broadened our focus, drawing it to the idea of “inclusion.”
Saito: The idea of “for all customers” was a drastic
departure from standard marketing conventions, whichcall for clear targets.
Sasaki: This idea was difficult to warm up to at first.
I was eventually able to get used to it by considering theneeds of people with “non-standard” body sizes, seniorcitizens, people with disabilities, members of the LGBT
community, and others, and thinking about how I could
address these needs. In the process of creating­successes and hearing the words of satisfied customers,
I began to reexamine what our true mission was. It was at
this point that “for all customers” went beyond a mereslogan to become a concept entrenched in our business.
Saito: Now, the idea of “for all customers” is just a
normal part of conversation.
Sasaki: The results of this change can be seen in the
Rakuchin Kirei series of private brand shoes and in thestore development approach taken at Hakata Marui.
Through these undertakings, we came to realize the factthat this demand had always been present in society; we
had just failed to address it. The next step in addressing
this demand is the try-on store initiative we are testingwith shoes. I now recognize that there are several unresolved issues faced by society and communities.

Dialogue02

perspective of a company that emphasizes efficiency tothe perspective of the customers that visit our stores.
Similarly, we placed card application centers, which werepreviously located on the top floors of buildings, in areasthat were more convenient for customers.
Sasaki: In the still unfinished process of developing
Hakata Marui, we enlisted the aid of Kyushu University,
Lifestyle Design Lab, and Mirairo to help us craft thestore’s facilities. These universal design specialists put
forth many ideas we would not have come up with on ourown, such as signs displaying the distance to restrooms
and areas for charging electric wheelchairs, which wereactually implemented in the store.
Saito: I think some of the issues fixed had been pointed
out previously but had gone unresolved. We were able toaddress these issues as we gained encouragement
through ongoing co-creation activities based on thecustomer’s perspective.

Shift from Company Perspective to
Customer Perspective
Sasaki: Customers do not get joy from buying products;
they get joy through the products as well as through theexperiences they have. This realization enabled us to give
form to a store development concept that puts the spotlight on the joy customers seek through products, which
was a major shift in perspective.
Saito: To put it differently, we shifted from the26

Familiarity with Finance,
Growing Potential of FinTech
Saito: The areas targeted by FinTech are, in fact, areas inwhich MARUI GROUP has always operated. In regard to
credit cards, the higher the income—and subsequently
credit limit—one has, the more likely they are to have abank-issued card. MARUI GROUP, meanwhile, has

Dialogue 02

supplied installment payment services and credit cards
to youths and low-income individuals since its founding
to encourage them to buy its products, and we createdcompletely unique credit evaluation standards throughthis process.
Sasaki: Our proprietary system in which customers areprovided a credit limit that increases based on theirpurchase and repayment history is inspired by thefounder’s basic belief that creditability should be built
together with customers.
Saito: The services currently provided in MARUIGROUP’s FinTech business remain based on this belief
and are centered around payment services using credit
cards. However, interest in asset management is highamong individuals of all ages and genders, and financeneeds are diversifying. The most significant changebrought about by the advent of FinTech is that consumers who rarely went to banks or securities companies are
now becoming familiar with financial services throughthe Internet. Considering the idea of inclusion, I thinkthat FinTech has real potential to develop into new
businesses.

Fulfilling Lifestyles Provided throughUnion of Retail and FinTech
Sasaki: Looking at our try-on stores for shoes, the size ofshoes is an important factor for grabbing customers.
After that, we can encourage them to apply for an EPOS
card when they order their products through the Internet.
Once customers become used to this method of purchasing, we will be able to encourage more customers to
buy our products as they will no longer be restricted toin-store purchases. The stores that serve as a space forexperiencing our products as well as our e-commerceand credit card operations are all supported by our
in-house IT and logistics operations. If we strategicallyintegrate the Group’s various businesses, we should be
able to forge new strengths.
Saito: I believe a major strength of MARUI GROUP is thatit handles all functions in-house, allowing us to operate
our business in an integrated manner. EPOS Card could
not exist without both the Retailing business and oursystem development company. Perhaps our greatest
strength is that employees versed in both retailing andfinance are able to accumulate know-how by beingtransferred between Group companies.
Sasaki: By integrating stores, the Internet, and credit
cards to develop a business model that fully leverages
the strengths of physical stores, we will be able toinclude an even more diverse range of customers.
Saito: Pursuing new ways of inclusion through the integration of the Retailing and FinTech businesses is also an
undertaking very characteristic of MARUI GROUP. Ourstrength is, after all, born out of this union of our two
major businesses.
Sasaki: When attempting to tackle a new challenge,
it can be easy to become preoccupied by pressing
short-term issues and lose sight of the uncertain future.
However, we cannot create fulfilling lifestyles 10 or 20
years down the line with this shortsightedness. I believe
it is important for everyone to envision such lifestyles
and actively work toward making them a reality. Thisendeavor will require all employees to have the courage
to change.
Saito: We strive to bring our customers joy through
EPOS cards and to give them a chance to pursue various
dreams. Our credit cards are not just cards; they givecustomers access to services at a wide range of locations
and act as a reliable ally to help them out in times ofneed. Our mission is to develop our business based on
the customer’s perspective. I hope to create a corporate
culture in which MARUI GROUP’s businesses are unitedin accomplishing this mission.

Dialogue 0227

Core Theme 2Core Theme 2

Workplace Inclusion

Workplace Inclusion

Dialogue

03

CORE THEME

Empowerment of Every Employee throughMutual Understanding

2 Workplace Inclusion
MARUI GROUP Core Theme

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 ourcompany,” we will provide all employees with venues throughwhich they can excel.

MARUI KIT CENTER CO., LTD., is a special subsidiary of
MARUI GROUP that advances initiatives for providing
employment opportunities to people with disabilities thatdate back to 1992. This company’s differently abled
employees utilize various techniques to overcome thechallenges faced in their work while fostering mutual
understanding as they work together. Using the common
language of sign language and picture boards, MARUIKIT CENTER employees sat down to discuss the issues
faced in their daily work and techniques used to overcome them as well as their motivation toward work.

Mutual understanding

45 of 56 MARUI KIT CENTER employees have disabilities

MARUI GROUP’s Goal

Venues throughwhich to excel

Equate thedevelopment ofour people with thedevelopment ofour company

Blue Team

Orange Team

People with mental disabilities: 32
People with physical disabilities: 3

People with hearing impairments:
10

Comfortable Workplace Built on Understanding of
Each Other’s Area of Weakness
Oyamada: I have a mental disability. Apparently, I wasborn with minor cerebral palsy. When I toured MARUIKIT CENTER three years ago, the lively atmosphere gave
the impression that it would be a comfortableenvironment for me to work in, and I thus chose to join.
Nishimoto: I have a hearing impairment. I originally
worked in a different company located here, in the Toda
Product Center, but I decided to join KIT CENTER 11
years ago.
Komiyama: When I was 24, I suffered from cerebral
hemorrhaging, which resulted in paralysis in the left halfof my body. I had originally joined MARUI GROUP 10
years ago out of an interest in fashion. In October 2016,
I transferred to KIT CENTER.

Benefits forsociety

Physical and mental health

The roughly 6,000 employees working for MARUI GROUP are a precious asset borrowed from society.
We are promoting workplace inclusion—remaining receptive toward employees’ diversity in terms of work
styles, values, and other characteristics—as we recognize that this endeavor will directly contribute toachieving diversity and inclusion with regard to all customers.

28

From left: Takashi Komiyama, Yuta Oyamada, Megumi Arai, Yukari Nishimoto,Yuka Sugita (Sign language interpreter), Mitsuru Hori (Moderator and sign language interpreter)

Dialogue 03

29

Core Theme 2Core Theme 2

Workplace Inclusion

Workplace Inclusion

Dialogue03

Arai: I have a hearing impairment. I was a homemaker forseveral years, but I joined KIT CENTER 11 years ago withthe aim of returning to the workforce. This company
offers an incredibly comfortable workplace environment
in which everyone strives to compensate for each other’sarea of weakness.
Oyamada: One benefit of joining KIT CENTER waslearning that there were areas of work I could handle aswell as areas in which I was weak.
Hori: You are referring to our unique license system if
I am correct. A detailed checklist is used to identify whichtypes of work each employee feels that they cannot
perform and what their areas of weakness are.
Komiyama: I can only use my right hand, but mycoworkers joined me in thinking of ways I could perform
my work more smoothly with only one hand.
Sugita: In the past, we had an employee who indicatedon the license system checklist that his work took a longtime to do. This employee was left-handed, but he had
been trained by a right-handed individual, which made itdifficult for the employee to use the same techniques.
When we learned what was causing his work to take solong, we quickly put our heads together to think of a way
for a left-handed person to perform the work efficiently.
Arai: I cannot hear, and I am therefore very sensitive
about what goes on around me. At KIT CENTER, there
are many employees that get distracted by theirsurroundings, so everyone faces the same direction
when they work. It is very nice to be able to focus only on
the work in front of me.
Sugita: An organized work station is incredibly
important. If the necessary items are not always in thesame place, even work that one is normally able toperform can become an area of weakness. At KIT
CENTER, the locations for all items are set.
Oyamada: The recipients of deliveries are now written inalphabet letters and numbers as opposed to kanji
characters. This has helped prevent mistakes and sped
up work.
Hori: It seems that alphabet letters and numbers wereeasier to recognize than kanji characters. One trait of KIT
CENTER is how it incorporates many such ideas andtechniques. A little consideration here and there canremove barriers, making work go smoother andimproving productivity.

30

Nishimoto: People that come up with good ideas
receive “little consideration awards.” At work, we arealways sharing ideas about how to remove the barriers
we may face.

Shift in Common Language from Writing to
Sign Language
Hori: I am sure everyone’s experience has been different,
but have you faced any issues when working with theother employees?
Arai: At first, I did not know how to interact with Blue
Team when working with them because sign language
was not an option.
Nishimoto: I felt the same. I worried much over how
I would tell Blue Team if an issue arose, how I would get
my point across.
Sugita: How do you overcome this language barrier
between Blue Team and Orange Team?
Oyamada: The leader of the product inspection team
I belong to is from Orange Team, so I used a writingboard at first. However, communicating by writing takes
time and makes it hard to really understand one another.
I therefore decided to learn sign language.
Arai: I am the leader of the office service team. Many
people at KIT CENTER are able to use sign language,
which really makes work progress smoothly.
Hori: Mr. Oyamada has an advanced sign language
license from our internal system. I understand that you
also received third rank certification in the national sign
language certification test last year.
Oyamada: I still use a writing board to communicate very
detailed points, but I am able to get by with sign language
for almost everything else.
Arai: People that are not good at sign language sometimes use both a writing board and a picture board.
Nishimoto: People with hearing impairments are usuallyseen as having a disability. However, this disability disappears when they are able to communicate with sign
language. I think that the real disability arises from a lackof common language when people who can hear workwith those who cannot.

Dialogue 03

Oyamada: People from Blue Team have people from
Orange Team teach them sign language on a daily basis.
Everyone is cooperating so that we can quickly become
able to use sign language effectively for workcommunication.

Yuta Oyamada
Product Inspection TeamMARUI KIT CENTER CO., LTD.
● Blue Team(mental disability)

Motivation from Knowing You Are Helping
Hori: What have you enjoyed about your work and what
has made you happy?
Oyamada: When I help out a coworker, it makes me
happy to hear them say “thank you.” I want to be someone everyone relies on, so I am trying to learn the work ofboth the product inspection team and the delivery center.
Arai: When I am asked to make an urgent delivery andI make it on time, I am always happy to receive an email
thanking me for the quick response. After making a delivery
and seeing the products on display in stores, I become
very happy. This experience has really hit home howmuch we are helping out.
Nishimoto: When I was on the product inspection team,
employees from Group company MOVING would often ask
me to help out when they were busy. Product inspectors
handle lots of products in a single day, and when I accomplish my goal, it really makes me feel that I am being useful.
Komiyama: I am still in training, but I get praised when
I finish my work on time. I really feel like KIT CENTER is a
comfortable place to work. As I am on the supply team,
I do not have the opportunity to interact with customers
directly. However, I go about my work with the belief that
I am aiding the Company by helping staff across Japan
perform their work more easily.
Arai: As a leader, I aim to be considerate of our various
needs and develop methods of facilitating our work inorder to make the workplace environment even more
comfortable.
Nishimoto: In the future, I hope to work in a different
department at MARUI GROUP so I can learn new skills.
Komiyama: I only transferred to KIT CENTER justrecently. I therefore want to get accustomed to the work
as soon as possible so I can become a jack-of-all-trades
capable of helping out in various positions.
Hori: Everyone here is so very passionate about theirwork. At KIT CENTER, I do not feel that employees are
impeded by barriers, such as from being unable to hearor having trouble communicating.

Dialogue 03

Megumi Arai
Office Service Team Leader
MARUI KIT CENTER CO., LTD.
● Orange Team(hearing impairment)

Yukari Nishimoto
Delivery Center Leader
MARUI KIT CENTER CO., LTD.
● Orange Team(hearing impairment)

Takashi Komiyama
Supply TeamMARUI KIT CENTER CO., LTD.
● Blue Team(physical disability)

Mitsuru Hori
Work Leader
MARUI KIT CENTER CO., LTD.
(Moderator and sign language
interpreter)

Yuka Sugita
Work Leader
MARUI KIT CENTER CO., LTD.
(Sign language interpreter)

31

Core Theme 2Core Theme 2

Workplace Inclusion

Workplace Inclusion

Creation of Venues through WhichAll Employees Can Excel
MARUI GROUP’s corporate philosophy calls for us to “equate the development of our people with the development of ourcompany,” and we therefore view the Company as a space for supporting employee growth. We thus strive to cultivate aworkplace environment that is conducive to generating innovation and is characterized by mutual understanding among
all employees, regardless of their age, gender, lifestyle, or sexual orientation. Through these efforts, we will foster a corporate
culture that furthers employee growth and creates venues that provide opportunities to everyone.

Promotion of Diversity Driving Organizational Innovation
Based on the belief that diversity makes life interesting,
we are promoting diversity in terms of employee gender,
age, and individual talents. In the midst of substantialsocial change illustrated by trends such as globalization
and IT advancement, people’s values are beginning todiverge, causing the diversification of customer needs.
When our employees sincerely look at society, allowing
for various values to merge, innovation will be born.

Profession Change System
As of April 2016, an aggregate total of 1,418 employees,
or approximately 25% of all employees, had taken
advantage of the shared Groupwide profession changesystem, providing an opportunity for employees to breakaway from their sense of normalcy and escape preconceptions to better adopt the viewpoint of stakeholders.
Active relocations among the various posts present at
Group companies are a means of promoting the contributions of female and younger employees and shaping
work styles that remain viable throughout one’s life.

Improvement in Group Productivity
via Profession Changes
Operating income per employee(including temporary employees)

4.7million¥2.5 million→ ¥1.8 times higher in the fiscal year ended March 31, 2016,
than in the fiscal year ended March 31, 201232

Personnel and Evaluation Systems
The Personnel Division is
actively exchanging
opinions with employeesof various standpoints,
companies, and positions
to formulate proposals for
future personnel and evaluation systems.
Silver Rating in work with Pride 2016
In October 2016, MARUI GROUP
received a silver rating from among
the three levels (bronze, silver, andgold) of the PRIDE INDEX in workwith Pride 2016. The PRIDE INDEX
was established by work with Prideand is the first index in Japan
designed to encourage the development of LGBT-friendly
workplaces in a manner that exceeds the boundaries ofcompanies. MARUI GROUP will continue its efforts to­support the LGBT community into the future.
Supporting the Next Generation
The AOI SCHOLARSHIPFOUNDATION was established by MARUI GROUP
founder Chuji Aoi with theaim of contributing to thedevelopment of people thatcan shape the future ofGroup of new university students
supported in the fiscal year ending
Japan and benefit society.
March 31, 2017
Over the more than 40
years since its establishment, this foundation has helped
fund the education of high school and university students
while facilitating networking between students receiving
scholarships and past graduates.

Proactive Healthcare Management
Supporting Employee Growth
MARUI GROUP believes that people’s ability to grow is
supported by their health. By changing employee awareness and behavior from the perspective of health, we canenergize employees and improve labor productivity.
Furthermore, through the implementation of proactive
healthcare management designed to help employeesdeliver the best possible performance, we aim to improve
corporate value while making contributions to society.
Healthcare Promotion Project
The health of each individual employee represents
a building block for the
corporate value of theCompany. Seeking tocreate a corporate culture
in which all members of
Healthcare Promotion Project meeting
held in the fiscal year ending March 31,
MARUI GROUP are con2017
siderate of this sentiment,
we set up the Healthcare Promotion Project together
with relevant divisions in November 2016. We also
positioned female healthcare promotion leaders throughout
Japan. As part of the activities of this project, we implemented stress checks and health- and cigarette-related
surveys during Healthcare Month, a month designated asa period for raising employee awareness regarding healthand health improvement.

DBJ Employees’ Health Management
Rated Loan Program
The Development Bank of Japan
Inc.’s proprietary DBJ Employees’
Health Management Rated Loan
Program evaluates companies
based on their healthcare management initiatives and the consideration given to employee health,selecting superior companies and setting financing conditions based on their rating. MARUI GROUP was awarded
the program’s highest rank of “A.”Evaluation Points
1.	Company has established a healthcare promotion
organization and entrenched healthcare management
by setting quantitative targets, monitoring and analyzing employee health conditions and lifestyle diseases,or other means.
2.	Company has set standards for lifestyle diseases andmedium-term targets for reducing risks and is­collaborating with health insurance unions to aid
employees in improving lifestyle diseases.
3.	Company has established systems, such as infertility
treatment leave and child nursing care leave, andnumerical targets to offer employees work-life balance
support and is otherwise building a comfortableworkplace environment.

Employee Comment

Ayumi Hiromatsu
General Manager,
Diversity Promotion Section,
Personnel Division
General Manager,
Health Management Section,
Health Management Division
MARUI GROUP CO., LTD.

Development of an Environment in Which Employees Work Hard and Exercise Their Talents
One of the goals of promoting diversity is to remove barriers preventing employees from working to
the extent they desire and thereby create an environment in which all employees can deliver theirbest performance. Each of our roughly 6,000 employees is unique. When these employees
understand each other and unite under a common goal, their combined wisdom will no doubt giverise to innovation. We are currently reviewing our personnel evaluation systems, striving toestablish systems that will better facilitate everyone’s growth. We also realize that employees’
desire to excel must be supported by good physical and mental health, a concept that is linked tothe idea that we should “equate the development of our people with the development of ourcompany” described in the corporate philosophy. It is only when our employees can grow and feel
joy that they will be able to bring joy to customers. In this manner, the goals of diversity andhealthcare management are, in fact, one and the same.

33

Core Theme 3

Core Theme 3

Ecological Inclusion

Ecological Inclusion

CORE THEME

3 Ecological Inclusion
MARUI GROUP Core ThemeACTIONGroup Effort to Reduce Environmental Footprint
Creation of Biodiversity-Rich Spaces in Urban Areas

Renewable Energy Initiatives
Nakano Marui participates in green
power certification systems and isutilizing renewable energy sources for a
portion of the electricity it consumes.
Also, solar power generation facilities
were installed at AIM Logisport (Toda
City, Saitama Prefecture) in 2014, and we are advancing
other initiatives for utilizing renewable energy.

MARUI GROUP’s Goal

We will develop eco-friendly businesses that areconsiderate of natural capital and propose ecologicallysound lifestyles that are in harmony with nature andthe environment.
Nakano Marui’s Four Seasons andWaterside Gardens (top photograph) werecertified as “Urban Oases” in 2013 and2016. They also received the Nakano
Greenery Contribution Award in 2015 andan award in the 5th Contest for Corporate
Activities on Biodiversity in 2016.

“Urban Oases”

Groupwide
energy saving

Environmental
impact traceability

Tracking of Environmental Footprint across the Value ChainMARUI GROUP endeavors to track its environmental
footprint across the entire value chain with regard toemissions of CO2 and other greenhouse gases, based on
which it advances measures for reducing its footprint
together with customers, business partners, communities,
and society as a whole.

The Q-COURT British-style garden(bottom photograph) of the Shinjuku
Marui Main Building was certified as an“Urban Oasis” in 2014.

Emissions by
MARUI GROUP
Scope 1 & 2:
100,000 t-CO2

Emissions from Procurement to Delivery
Scope 3: 350,000 t-CO2

Post-Purchase Emissions
Scope 3: 160,000 t-CO2

Ecologically soundlifestyles

Total Greenhouse
Gas Emissions
across the Supply
Chain
610,000 t-CO2
Raw material
procurement

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 theMinistry of Economy, Trade and Industry. The results of these calculations have been checked by Mizuho Information & Research Institute, Inc.

Co-creation withstakeholders

Elimination of unused
products

As a company that provides customers with fulfilling lifestyles, our environmental responsibilities are notlimited to reducing our own environmental impact. We believe that MARUI GROUP can propose ecologicallysound lifestyles as it promotes ecological inclusion through co-creation activities with its stakeholders
prefaced on consideration for the environment throughout society.

34

Employee Comment

Mamoru Koide
Sales Representative Manager,
Nakano MaruiMARUI CO., LTD.

Expansion of Ecological Network through Co-Creation with Community Members
Nakano Marui’s Four Seasons and Waterside Gardens provide refreshing spaces for people living in
Nakano, places in which they can relax when they get a break from work. Several community members
requested that these spaces be used for events, inspiring us to work together with local councils
and shopping districts to plan events rooted to the Nakano community in the gardens, such as
educational events for teaching children about nature and animals. When these gardens were first
opened, they originally felt a bit artificial. Seeking to make the gardens a hospitable environment foranimals, rather than just a tool for reducing our environmental impact, we worked together withspecialists, receiving advice on how trees should be planted and other matters. Now, the gardens seem
more natural, even to the degree that birds lay eggs in them. Going forward, we hope to continue toexpand our ecological network through co-creation activities with community members in order tocreate a space for enjoying connections with nature and learning the importance of animals.

35

Core Theme 3

Core Theme 3

Ecological Inclusion

Ecological Inclusion

Proposal of Ecologically Sound Lifestyles
MARUI GROUP seeks to reduce waste throughout all processes related to its private brands, from product development
to the trade-in of no-longer-necessary products. In addition, on private brand products, we display information about theenvironmental impacts that will occur throughout their entire lifecycle. We thereby propose ecologically sound lifestyles
by helping customers choose eco-friendly products.

Evolution from Reuse to Reduction
Introduced in 2010, the apparel recycling program entails
collecting trade-ins of clothing and shoes so that these
items may be reused (resold). In addition, we ask customers
submitting trade-in items about their shoe-related concerns
and use this information in the development of our Rakuchin
Kirei series of private brand shoes, which feature not only
appealing designs but also superior comfort delivered
through sizes matched to customer feet. In developing
these shoes, we have employed a process fine-tuned toaddressing customer concerns. This process includes
having customers participate in planning meetings andcreating original shoe trees to expand the range of sizes
we can provide. These efforts help to prevent products
from going unused due to not matching customer needs,
for example, being too painful to wear and thus getting
thrown away, effectively expanding the function of theapparel recycling program to include the reduction ofwaste. We hope to contribute to the resolution of social
issues through these efforts.

Omni-Channel Try-On Stores Mitigating
Environmental Impacts
It is common for shoes sold via the Internet to be returned
due to not matching the customer’s foot shape or size.
Handling these returns results in wasted energy andpacking. Our omni-channel try-on stores are an initiativeadvanced in an integrated manner by the Group thatunites product creation, Internet sales, and physicalstores to address this issue. These stores eliminate theneed for store inventories, subsequently lowering the riskof inventory disposal losses, while also reducing customer
returns and with it, warehouse inventories. Try-on stores
thus help mitigate environmental impacts.

Initiatives Targeting Customers Hoping toHelp Address Environmental Issues
In August 2014, MARUI GROUP took steps to display the
carbon footprint, or the amount of CO2 emissions, of eachpair of Rakuchin Kirei series shoes to make clear theenvironmental impact associated with these shoes acrossthe value chain. These displays help customers make aconscious decision to choose eco-friendly shoes. This is
one way in which we are proposing ecologically soundlifestyles to customers hoping to help address environmental issues by purchasing eco-friendly products.
Example Breakdown of CO2 Emissions throughout
Shoes Value Chain

Raw material procurement

Product production

22%

Product delivery

16%





Social Benefits of Try-On Stores
Attend short-term
event stores

Product use and recyclingFreely select size
from samples

Lowering of inventory disposal losses
and logistics burden by eliminating
the need for store inventories

Try on in self-service
fashionAlleviation of concern due to not
being able to try on items bought
via the Internet

47%

15%

Shoes Thrown Away
Ratio of people throwing away shoesthat are no longer worn92%

The results of these calculations havebeen checked by Mizuho Information

Based on 2013 survey of EPOS cardholders

Number of clothing items and shoes traded in
by customers

Approx.

4.5million

May 2010–March 2015

Carbon footprint& Research Institute, Inc.

Order withdedicated tablet

Reduction of packing use due to lackof need for bags to carry home
In-store display informing customers
about carbon footprint initiatives

Receive productvia home delivery

80% reduction in returned products,
lowering logistics burden

Ecological Actions to Eliminate Environmental Impacts
MARUI GROUP is proposing ecologically sound lifestyles
to the greater society and promoting ecological inclusion
together with its customers, business partners, and otherstakeholders.
Revision of MARUI GROUP Environmental Policy froma Natural Capital Perspective
MARUI GROUP views all the resources it uses in its
business as being borrowed from society. Based on thisbelief, we examined the impacts of our business on natural
capital and then revised the MARUI GROUP Environmental
Policy in order to better guide us in preventing climatechange and pollution and otherwise advancing eco-friendly
business activities on a Groupwide basis.
→S ee page 45 for more information on the MARUI GROUP
Environmental Policy.

Responsible Procurement Practiced Together with
Business Partners
The MARUI GROUP Procurement Policy was formulated
in April 2016 to serve as a roadmap for practicing
responsible procurement together with business partners
across the entire supply chain in relation to the development of private brands. To disseminate this policy, we
held explanatory forums with approximately 100 partners.
Surveys were then distributed and on-site investigations
were conducted by dedicated staff from the CSR
Promotion Department. The findings of these activities
have been shared with partners. Moreover, based on theopinion of a third-party institution, we adopted an approachemphasizing mutual cooperation in encouraging
business partners to adhere to this policy.
Offset of 50 Tons of CO2 Emissions in 2016MARUI GROUP has employed carbon
offset schemes since 2009 as an
ecological action for offsetting emissionsof CO2 and other greenhouse gasesthat it is unable to reduce in its own
operations through reductions or theabsorption of emissions elsewhere.
These efforts have been highly
evaluated, as indicated by the Company
receiving an award of excellence in the
6th Carbon Offset Awards.
→S ee page 43 for more information onawards received.

36

37

Core Theme 4Core Theme 4

Co-Creation Corporate Governance

Co-Creation Corporate GovernanceDialogue

04

CORE THEME

4 Co-Creation Corporate Governance
MARUI GROUP Core Theme

Multi-Stakeholder Perspective Enabling
Challenges into Unexplored Realms

MARUI GROUP’s Goal

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

Customers

Hidemi Tomita

Hiroshi Aoi

Director and General Manager ofBusiness Development Division
Lloyd’s Register Japan K.K.

Business
partners

Investors

The Great Potential of a Management Model Based ona Multi-Stakeholder Perspective

Harmonization of
stakeholder interestsand expansion of intersection

Communities andSociety

Employees

MARUI GROUP believes that corporate value is created through harmony between the interests and thehappiness of all stakeholders. We are thus practicing stakeholder inclusion to make stakeholders a part ofmanagement in order to realize governance that works for all stakeholders and thereby achieve this harmony.

38

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

Tomita: I feel that MARUI GROUP’s idea of co-creation
management matches my concept of sustainability.
I understand that you define corporate value as beingborn out of the harmony between the interests and thehappiness of all of our stakeholders, which is mostintriguing. It is likely that people will come to view thissentiment as part of an ideal company in the future.
Taken to its extreme, the belief that companies are forshareholders can lead companies to reduce the incomeof employees and the profits of suppliers in order toimprove corporate earnings and make greater returns toshareholders. Company representatives often ask mewhat perspective they should take in management. My
answer is to adopt a multi-stakeholder perspective.
Aoi: The idea of a multi-stakeholder perspective is very
easy to understand.
Tomita: Company workers prioritize their company atwork, but when they go home, they become members of

the community, or maybe even shareholders of theircompany. They also pay taxes and vote, giving them arole in supporting the government. Moreover, someengage in volunteer activities. In this manner, each stakeholder does not fall into a single stakeholder category.
If employees adopt the perspective of a customer, forexample, they may see areas needing to be changed.
I have always thought that it was important to find a way
to reconcile the differing perspectives of all stakeholders.
MARUI GROUP’s idea of corporate value seems to exemplify
what I was thinking. This concept lends itself to a
management model focused on expanding the intersection between stakeholder interests, an approach that
I think has great potential.

Sustainability as Key to Shifting Focus from
Growth to Evolution
Aoi: The timelines people use to view matters seem to begetting shorter, and this is not just limited to managers.

Dialogue 04

39

Core Theme 4Core Theme 4

Co-Creation Corporate Governance

Co-Creation Corporate GovernanceDialogue04

However, a short timeline makes it difficult to perceive
the possibilities that can be realized far into the future.
Having a longer timeline can be crucial.
Tomita: Employees are generally evaluated on a yearlybasis, meaning that they need to create results within asingle year. Managers are the same. However, if results
are expected to be created on such a short timeline,
I fear that the final destination companies find themselvesat may be quite bleak. Achieving harmony between theinterests and the happiness of all of our stakeholders isessential for a company to continue developing overthe long term.
Aoi: The question then becomes: How should a company
grow over the long term? However, I feel that the word“growth” is not ideal. “Evolution” may be more appropriate.
When thinking about how a company should evolve,
corporate value and sustainability seem to be key to acompany’s evolution. It is not enough for one to profit atanother’s expense. Rather, the ideal form of evolution isfor something new, a great and unprecedented type ofvalue, to be born out of harmony, out of reconcilinginconsistencies between stakeholder interests.
Tomita: The word “evolution” is truly amazing. Whilesome advocate sustainable growth, others go further toclaim that, given environmental and other restrictions,simple economic growth is unrealistic, and that weshould instead be working to maintain stable performance that is sustainable, or even reduce performance.
The word “evolution,” however, has a strong nuance ofchange, whether in form or in thinking. Environmental
restrictions are thrusting us into an era in which we willneed to change prior conceptions of economic growth
and reexamine what true value is.

favorite artist. I envision a world in which this desire to
support something can be fully expressed via money or
virtual currency and in which participation in this economy eventually contributes to the happiness of participants and society as a whole. In this world, consumption
will become more like a form of self-expression.
Tomita: You speak of creating spaces, correct? I believethat your stores function by providing a space in whichcustomers and business partners can play a leading rolein creating vibrant new worlds. It seems to me that this is
the model MARUI GROUP is trying to create.
Aoi: I think you really summed up our model well. In ourconcept of corporate value, we are not present. This
concept is more based on interests and happiness,making it similar to the multi-stakeholder perspective
you mentioned previously. We remove ourselves and theCompany from the picture; what remains is a space. In
other words, it is the job of a company to operate thisspace. Companies are places for supporting the growthof people. You could even look at companies as a box
packed full of people and objects. If the box is emptied,Spaces for Driving Evolution Arising from Empathy

Going Beyond Governance for Shareholders toGovernance for Stakeholders
Aoi: If we were to redefine the concept of corporate
governance based on our view of corporate value, theresult would be governance for the sake of all stakeholders

that goes beyond traditional governance for the benefitof shareholders. Practicing this type of governance would
entail stepping into the unexplored realm of stakeholder
inclusion. This realm echoes the idea of a multi-stakeholder perspective you spoke of, Mr. Tomita. In the past,customers that have participated in planning meetings
have ended up joining the Company or being employedby business partners. I want to have individuals such asthese participate in management. In addition, by offering
customers that participate in planning meetings sharesof MARUI GROUP’s stock as a form of thanks, we canmake them into shareholders. In this way, it is possible
for a customer to hold three perspectives, supporting us
as a customer as well as from their shareholder andother perspectives.
Tomita: I think you could also offer employees bonusesin the form of stocks. Such an initiative would increase
the number of shareholders supporting MARUI GROUP
and also create a situation where it would not be strange
to see employee or customer representatives at Board of
Directors’ meetings. This is one step you might take inexpanding the intersection between the interests ofstakeholders.
Aoi: At MARUI GROUP, we strive to always be at theforefront of all of our pursuits, and we thus aim to work
together with our stakeholders to create the society of
tomorrow.

Hidemi Tomita
Director and General Manager ofBusiness Development Division
Lloyd’s Register Japan K.K.

Tomita: When people speak of the shift from consumption of goods to consumption of experiences, they aretalking about one type of change. We must next think
about a change that is not purely monetary, a changethat will truly create a new world.
Aoi: Looking at the example of music, some music fans
now buy 10 or even 20 copies of the same CD. This is
not because they want the CDs themselves, but rather
because they want to display their support for their40

and if its sides and top collapse, all that remains is thespace of the box. This is how I see our role as a company.
Tomita: I think that MARUI GROUP is creating such aspace through its co-creation activities. Empathy,
I believe, is of utmost importance in this undertaking.
Aoi: Empathy is indeed very important. Harmony,
I believe, is built through dialogue, and empathy is crucial
to effective dialogue as it opens lines of communicationand prevents people from becoming locked in their own
one-sided thinking. From dialogue, we can make many
new discoveries. Creating spaces in which this dialogue
can flourish will likely supply a strong driving force forour evolution.

Mr. Tomita served as head of the Corporate Social Responsibility Department at
Sony Corporation for roughly a decade following the establishment of thisdepartment. He later participated in the establishment of the ISO 26000 social
responsibility standard and the ISO 20400 sustainable procurement standard asa representative of Japan. He was also involved in formulating the new GRI
Standards as a member of the Global Reporting Initiative’s Global Sustainability
Standards Board. Furthermore, Mr. Tomita has been a member of committees onsimilar topics at the Ministry of Economy, Trade and Industry; Ministry of theEnvironment; Cabinet Office; and The Tokyo Organising Committee of the
Olympic and Paralympic Games.

Dialogue 04

Dialogue 04

41

Overview of MARUI GROUP
As of March 31, 2016

Company Overview
Name
Head office
Date of foundation
Date ofestablishment
CapitalBusiness activities

Individuals andothers*2
59,603,000 shares(21.4%)

Total sales floor area 441,800 m2
Number of
5,899(Group total, excludes temporary employees)
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

Stock Information
Stock listing

Financial institutions
97,784,000 shares(35.1%)MARUI GROUP Ranked High in the 2016
All-Japan Executive Team Rankings Released by
U.S. Financial Industry Magazine Institutional Investor

Securities
companies
8,628,000 shares(3.1%)MARUI GROUP was placed in the upper ranks among retail sector companies
in the Best IR Companies category and President Aoi placed high among
retail sector peers in the Best CEOs category of the 2016 All-Japan Executive
Team Rankings. These rankings are compiled by globally renowned U.S.
financial industry magazine Institutional Investor.

278,660,417
shares¥35,920 million
Corporate planning and management forGroup companies conducting Retailingand Store Operation, Credit Card
Services, and Retailing-Related Services
businesses and other businesses
Marui: 24 located in Kanto, Tokai,
and Kansai regions
Modi: 4 located in Kanto region

StoresAwards Received

Distribution 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

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

Securities code
Number of
authorized shares
Number of common 278,660,417
shares issued*1
Number of
21,770shareholders

Foreign institutions
and individuals
72,912,000 shares(26.2%)

Other companies
within Japan
39,732,000 shares(14.3%)

Best IR Companies Sell Side No.
Best CEOs*2 Individuals and others includes 36,270,334 shares of treasury stock.

Sell Side No.

Major Shareholders
Name

Percentage of
total sharesissued*3 (%)

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

27,505

11.3

Japan Trustee Services Bank, Ltd.
(Trust Account)

22,496

9.3

Aoi Real Estate Co., Ltd.

6,019

2.5

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,808

2.4

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

5,133

2.1

Toho Co., Ltd.

3,779

1.6

MSCO CUSTOMER SECURITIES

3,654

1.5

AOI SCHOLARSHIP FOUNDATION

3,234

1.3

Toriyama Co., Ltd.

3,104

1.3

STATE STREET BANK WEST
CLIENT-TREATY 505234

3,048

1.3

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 fromaround the world. The ranking consists of six categories (Best CEOs, Best
CFOs, Best IR Professionals, Best IR Companies, Best Analyst Days, and Best
Websites). In 2016, votes were received from 515 institutional investors andsecurities analysts from 205 institutions.
Ranking Details
www.institutionalinvestor.com/Research/6280/
Honored-Companies.html#.V1UuU01f2M8

Platinum “Kurumin” Certification for
Companies that Actively Support Child-rearing
The Platinum “Kurumin” program is designed to recognize
companies that have regular “Kurumin” certification andhave made exceptional progress in promoting the use ofwork-life balance systems. In July 2016, Platinum“Kurumin” certification was awarded to MARUI GROUP by
the Ministry of Health, Labour and Welfare (MHLW) tocertify the Company as providing superb levels of
support for employees’ child-rearing efforts.

*3 Percentage of total shares issued is calculated excluding treasury stock.

Grand Prix Award in Ikumen EnterpriseAward 2016
The MHLW presents the Ikumen Enterprise Award to help
support men in participating in child-rearing andacquiring childcare leave. MARUI GROUP has introduced
a short-term childcare leave system, and usage of thissystem by men has increased rapidly. We thus received aSpecial Encouragement Award in the 2014 program andthen the Grand Prix Award in the 2016 program.

Stock Price
Closing price for Company stock (Yen)

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

Ranked 1st in Retail Category of 2016 Awards
for Excellence in Corporate Disclosure
MARUI GROUP was ranked 1st in the retail category of
the 2016 Awards for Excellence in Corporate Disclosure
given by the Securities Analysts Association of Japan.

Best IR Award
In November 2016, the Japan Investor Relations
Association presented MARUI GROUP with the Best IRAward in its 2016 IR Award out of recognition for theCompany’s improvement of disclosure materials basedon investor input and the uniqueness of initiatives suchas MARUI IR DAY.

Award of Excellence in 6th Carbon Offset Awards
The Carbon Offset Awards were established with the aimof furthering the development of a low-carbon society bypromoting proper understanding of carbon offset andencouraging utilization in business activities to spread
usage. The acknowledgment of the Rakuchin Kirei seriesof shoes as eco-friendly products and the high evaluation of related carbon offset initiatives, which began in
2014, made MARUI GROUP the first apparel company
to be recognized by this award program.

GP Environmental Award
The Japan Federation of Printing Industries selects
companies for the GP Environmental Award that havedemonstrated a passionate approach to reducing theirenvironmental impact and displayed the GP mark on thelargest number of publications. MARUI GROUP received
this award in both 2015 and 2016 for its understanding
and active use of the GP certification system.

24,000

2,000
1,500

18,000

Nikkei 225

12,000

1,000
500

6,000

Closing price for Company stock00

Trading volume (Thousands of shares)

ボ ス の 理 解 が 、社 会 を 変 え る 。

100,000
80,00060,00040,00020,00042

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

The Porter Prize is an award created in July 2001 to
bestow recognition on Japanese companies that haveachieved and maintained superior profitability in aparticular industry by implementing unique strategies
based on innovations in products, processes, and waysof managing. The name of the award is derived from
Professor Michael E. Porter of Harvard University,a leading authority on competitive strategy.
www.porterprize.org/english/index.html

About the All-Japan Executive Team Rankings

Number ofshares(Thousands ofshares)*1 Number of common shares issued includes 36,270,334 shares of treasury stock,equivalent to 13% of the total number of shares of common stock issued.

02

Receipt of 16th Porter Prize by
Credit Card Services Business2007/1

2008/1

2009/1

2010/1

2011/1

2012/1

2013/1

2014/1

2015/1

2016/1

Grand Prix Award in Ikuboss Award 2015

Finalist in 3rd Nikkei Social Initiative Awards

The MHLW’s Ikuboss Award program recognizes
managers that support their subordinates’ work-lifebalance. Kazumi Abe, a director and store manager at
MARUI CO., LTD., received the Grand Prix Award in the
Ikuboss Award 2015 program. Reasons for Ms. Abe’s
selection included her management style that inspires her
staff as well as her consideration for the unique situationsof her employees. Ms. Abe also received recognition forher efforts to encourage the use of childcare leave by
male employees on a Companywide basis.

In April 2015, MARUI GROUP was selected as a finalist in
the Tohoku category of the 3rd Nikkei Social Initiative
Awards. This decision was a reflection of the highevaluation of the Company’s efforts to resolve social
issues; support reconstruction in the Tohoku region,
which was heavily damaged by the 2011 Great East Japan
Earthquake; and help people in this region achieve
independence by supplying trade-in clothing and shoes tobe resold in special charity bazaars in the Tohoku region.

43

MARUI GROUP Environmental Policy
Established in 2008, revised in 2016

Financial and Non-Financial Data
2014

2015

2016

Women

2,655

2,641

2,685

Men

3,311

3,277

3,214

Basic Policy
MARUI GROUP strives to provide all of its customers with joy and fulfilling lifestyles
through a unique business model comprising its Retailing and FinTech businesses.
We believe that a fulfilling lifestyle is one in which an individual’s sensibilities are such that they wish fora sustainable and flourishing society that is considerate of natural capital and the enrichment of people’s lives.

Fiscal years ended March 31

Number of employees

Average number of temporary employees

Total

5,966

5,918

5,899

Women

1,491

1,596

1,585

Men

485

457

362

Total

1,976

2,053

1,947

Women

12.9

13.4

13.9

Men

20.9

21.3

21.8

Women

35.4

36

36.4

Men

44.4

44.8

45.3

Number of intra-Group profession changes*1

383

552

196

Aggregate total number of intra-Group
profession changes

670

1,222

1,418

Ratio of employees with disabilities (%)*2

2.12

2.08

2.16

Number of female leaders

545

576

603

Average number of consecutive years served
Average age

Number of female managers

24

28

29

Ratio of female managers (%)

7.0

8.0

8.9

Childcare leave (average acquisition numbers
for women)*3

289

309

305

Shortened working hours for childbirth or childcare
purposes (men and women)*4

312

345

386

Ratio of applicable male employees taking
childcare leave (%)

14

54

66

Ratio of female employees returning to work full timeafter taking childcare leave (%)*5

36

55

66

Total number of stores

27

27

28

Total sales floor area (thousand m )

446.5

444.0

441.8

Environment preservation expenditure(thousands of yen)

924,500

1,281,000

837,400

Energy consumption (t-CO2)

90,67086,15080,902Per unit energy consumption

0.03640.03680.0332

Water consumption (thousands of m3)

1,270

1,240

1,254

2

Electricity consumption (thousands of kWh)

214,905

199,700

196,196

Total waste production (tons)

13,62013,39012,900Waste sent to final disposal (tons)

5,760

5,550

5,200

Ratio of waste recycled (%)

58

59

60

CO2 emissions (Scope 1 and 2) (t-CO2)*6

113,227

109,528

101,278

CO2 emissions (Scope 3) (t-CO2)*6

550,612530,595

509,070*1 Figures represent the total for April and October of each year.
*2 Figures are as of June 1 of each year.
*3 Figures are the average for each fiscal year.
*4 Figures are the total for each fiscal year.
*5 Ratio of employees returning to work full time after taking childcare leave is the ratio of female employees returning to work full time to the total number of female
employees that returned to work shortened hours after childcare leave within a given year.
*6 Scope 1 and 2 represent CO2 emissions from the Group. Scope 3 represents CO2 emissions from areas including raw material procurement, transportation, and use bycustomers. Emissions calculations for Scope 3 are verified by Mizuho Information & Research Institute, Inc.

44

MARUI GROUP views all the resources it uses in its business as being borrowed from society.
Based on this belief, we examined the impacts of our business on natural capital and then revised
the MARUI GROUP Environmental Policy in order to better guide us in preventing climate change andpollution and otherwise advancing eco-friendly business activities on a Groupwide basis.

Code of Conduct
1. Integrated Group Efforts to Reduce
Environmental Footprint
To contribute to the realization of a sustainable and flourishingsociety, all Group employees should practice autonomy inexpanding the scope of our socially beneficial activities andproposing fulfilling lifestyles steeped in the unique characteristics of MARUI GROUP. This objective should be accomplished while advancing eco-friendly business activities.

2. Co-Creation with Stakeholders
MARUI GROUP is to advance ongoing initiatives for
reducing its environmental impact together with customers,
implement the MARUI GROUP Procurement Policy together
with business partners, and engage in other co-creation
activities with all stakeholders. In this manner, we should
actively work toward environmental preservation andcontribute to communities and society as a whole.
3. Reduction of Environmental Footprint of Stores
Initiatives at stores should include energy-saving measures
at shopping centers, development of green spaces at storesin urban locations, preservation of biodiversity, and promotionof the 3Rs (reduce, reuse, and recycle) with regard toresources.

4. Reduction of Environmental Footprint of
Private Brand Products
MARUI GROUP should strive to reduce waste by preventing
the creation of products that go unused due to not meetingcustomer needs while reducing greenhouse gas emissions
and developing eco-friendly products. At the same time, weshould track conditions across the value chain, from raw
material procurement to disposal or reuse, in order toengage in safe and trustworthy production and procurement,
which should include management of work environments
and chemical substances.
5. Development of Innovative Services for
Reducing Environmental Impacts
MARUI GROUP shall utilize its unique platform, which incorporates 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 andcustomer needs while also reducing environmental impacts.
6. Compliance with Environmental Regulations
Based on environmental legislation, regional ordinances andagreements, and international customs and conventions,
MARUI GROUP shall comply with and properly address theenvironmental regulations present in each country of operation. We shall also manage our own business activities inaccordance with internal standards.

Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.
November 1, 2016
Targets Leading up to 2050
The MARUI GROUP Environmental Policy was established in 2008, after which
MARUI GROUP accomplished its targets of reducing per unit greenhouse gas
emissions by more than 1% each year and achieving a recycling rate of 60%.
Based on projected future changes in our business activities and our impact onnatural capital, we are in the process of discussing possible short-, medium-, andlong-term targets for reducing environmental impacts leading up to 2050.
Management Systems
The Company has in place the 20-member Compliance Promotion Board, which ischaired by MARUI GROUP’s president, and the 10-member Environment CSR
Promotion Committee, which is chaired by the officer in charge of CSR promotion.
Meetings and committee assemblies are held regularly. The details of discussions
by the Environment CSR Promotion Committee are periodically reported to theCompliance Promotion Board to promote collaborative discussion.

Compliance Promotion Board
Chairman:	President and Representative Director andRepresentative Executive Officer of MARUI GROUP CO., LTD.
Members:	Senior managing executive officers, managing executive officers,
senior executive officers, executive officers, and Audit & Supervisory
Board members of MARUI GROUP CO., LTD.; president and representative director of MRI Co., Ltd.; and president and representative
director of Epos Small Amount and Short Term Insurance Co., Ltd.
Secretariat:	General manager of General Affairs Division of MARUI GROUP CO., LTD.
Environment CSR Promotion Committee
Chairman:	Managing executive officer in charge of CSR promotion of
MARUI GROUP CO., LTD.
Members:	Directors of Group companies; general manager of CSR Promotion
Department of MARUI GROUP CO., LTD.; general manager of StoreManager & Store Support Division of MARUI CO., LTD.; and chairmanof Central Vice Executive Committee of MARUI GROUP UNION
Secretariat:	Chief manager of CSR Promotion Department of MARUI GROUP CO., LTD.

45

Publication date: January 2017
Publisher: MARUI GROUP CO., LTD. /CSR Promotion Department / ESG Promotion Department
Planning and production: EDGE INTERNATIONAL, INC.

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

Front cover photograph taken from Shibuya Modi andback cover photograph taken from Shibuya Marui in October 2016