Rendering of New Shibuya Parco

Management Strategy＞

Innovation of Parco Business (New Shibuya Parco)“Next-generation Parco”in Shibuya
With respect to the direction of store planning, we aim toNew Shibuya Parcocreate next-generation commercial space that provides

The rebuilding project of Shibuya Parco is a pillar of theappeal unique to Parco’s own real store including new

innovation of the Parco Business. Shibuya Parco, which isshopping experiences using the latest technologies forbeing rebuilt, has made various new proposals as thecustomer services, payment methods and others, new ideas

starting point of Parco’s uniqueness. In “new Shibuya

to meet changing lifestyles of mature urban consumers, andParco,”which is scheduled to open in fall 2019, we would“learning”and“experiences”using“Parco Theater”thatlike to bring together new initiatives which have never been

will be newly reborn. Using the advantages of commercial

done in conventional commercial facilities.

complex including offices, we will expand the business by

The scheme of this project was approved in December

expanding contact with various companies, provide

2015 as an urban planning project of special urban

advanced tenant services using ICT, and cooperate in therenaissance district, not simple rebuilding. Based on“creation of Entertainment City”in Shibuya-ku.

evaluation of its contribution to urban renaissance, its floor-

By spreading the new achievements and know-how

area ratio was allowed to increase. With respect to thegained through this project to other urban stores gradually,

income and expenditure of the redevelopment project,

we will realize the evolution of the store brand of entire

proceeds from the disposal of reserve floor area will cover

Parco.

project cost, land maintenance cost, construction cost,compensation cost for the suspension of business andothers. The office area of reserve floor area was sold andthe store area will be acquired by Parco.

Expanding commercial real estate
As the initiatives of the Parco Business to expand
commercial real estate including Zero Gate and newformats, eight development projects are in progress in fiscal

Scheme of“Udagawa-cho District 14/15 Category 1 Urban Redevelopment Project”
Income and expenditure of Udagawa-cho District 14/15 Category 1 Urban Redevelopment Project

Proceeds from disposal of reserve ﬂoor area:
Approx ¥46.4 bn

Project cost,land maintenance cost,construction cost, etc.
Compensation cost
Suspension of business,relocation cost, etc.
Oﬃce cost, etc.

Expenditure

32year 2018. Specifically, Kyoto Zero gate, which partiallyopened in 2017, will fully open and three other storesincluding Harajuku Zero Gate and Sannomiya Zero GateOﬃce area*Concluded transfer
agreement concerningoﬃce ﬂoor with Hulic

will open in fiscal year 2018. From late 2018 to fiscal yearStore area
*To be acquired by Parco

Zero Gate in fall 2019 to cultivate the central part ofIncome2019, stores in new formats will open in Kinshicho andUrasoe, Okinawa. In addition, we decided to open Kawasaki
Kawasaki-shi that is expected to grow and improve urbanfunction.

Existing Parco store
Existing Zero Gate
Store opening after the start of the current Medium-term
Business Plan and development project already announced

Improvement ofcustomer services
and tenant services
In the stores business, we
provide customer services andtenant services using ICT as aKyoto

Ueno

Kyoto Zero Gate
Opened in Nov 2017

Parco_ya
Opened in Nov 2017

Kobe

Sannomiya Zero Gate
(provisional)
Opening date is to be determined

Okinawa

Urasoe West Coast Project
Scheduled to open
in summer 2019

Management Strategy

Cultivating urban areas with growth potential by developing new formats in addition to Parco and Zero Gate

Harajuku

Harajuku Zero Gate
Opened in Mar 2018

Kinshicho

customer service and tenant
support policy.
Aiming at digital transformation

In front of Kinshicho Sta
Scheduled to open
in the 2nd half of 2018that is expected to be adopted onShibuya

a full scale in new Shibuya Parco,New Shibuya Parco
Scheduled to openin fall 2019

which is planned to open in fall
2019, we conduct the pilot testsof the measures to provide newconsumption

experiences

byexpanding in-store services ofRevitalizing existing storescommercial facility Parco.
For customers, we introduced a 3D scanner, which enables

In each Parco store, we promote renovation based on

customers to post the 3D images of their coordinated styles

changes in consumption and store characteristics. In fiscal

on social media, at SR6 in Shibuya in December and use it toyear 2017, we conducted renovation of approximately 35,000sell fashion items. We also developed voice search service

square meters. In urban stores, mainly Nagoya Parco andAlexa Skill that provides voice guidance service in Parco

Fukuoka Parco,“spaces”that offer new ways of communicating

stores and installed it in Ikebukuro Parco in April. Furthermore,

were provided and restaurants that offer information wereaiming at improving our ability to offer information as media,introduced. In community stores, mainly Urawa Parco andwe will implement various initiatives, beginning in the 2nd half

Tsudanuma Parco, food floors, which play a central part inof 2018, including increasing buying menu in conjunction

encouraging customers to make multiple purchases and staywith information on Pocket Parco.

longer in the store, were renovated and large-scale key

For tenants and brands in Parco stores, we help themtenants with strong ability to bring in customers were invited.

strengthen sales and the transmission of information. We

In fiscal year 2018, we are planning to renovate floor areachanged the orientation training programs for newly employedof approximately 35,000 square meters under the theme ofpeople to be provided online so that they can take them atthe creation of new added value that meets diversified

their convenient time and focus on customer services at

consumption needs. By introducing key items, mainly

stores.

“cosmetics”and“food”-related products, we will carry out
renovations to expand the variety of fashion zones.

When opened “Parco_ya” in Ueno Frontier Tower, weintroduced at each shop Japan’s first service to analyze“store

In urban stores, we will introduce“health & beauty”as atraffic”and“customer attributes”such as age and gender,

provider of added value for lifestyles and provide new food

which can be used to ensure appropriate personnel structure

style ideas including formats and shop interior and common

according to store traffic by time of day and changes in store

space decoration. In community stores, we will continue totraffic by date and time and revise product lineup according tostrengthen their offering by introducing high quality

customer attributes.

supermarkets that meet market needs and improving foodspecialty shops.

Commercial facility’s first shared office / co-working space (Fukuoka Parco)

Tested a 3D scanner for coordinated styles (Shibuya SR6)Integrated Report 201833