MANAGEMENT STRATEGYSC Business 01 Real×Digital Strategy

Polish Up Physical Stores through“Production by Parco”

Potential of Shibuya PARCO / Shinsaibashi PARCOIn Shibuya PARCO, unique limited-time shops and exhibitions
have achieved success. In 2022, it actively opened uniquelimited-time shops including “Jiyu na Sebiro (literally free suitjackets)” jointly organized by United Arrows, Comme desGarçons, and New Balance. When an exhibition Mickey Mouse
Now and Future was held, its pop-up truck toured around
PARCO and Daimaru stores throughout Japan to contribute to“making content attractive” at the Group level.
In addition, in September 2019, capturing the growth of theoutdoor market with changes in lifestyles, about a half of the 5thfloor of Shibuya PARCO was renewed as PARCO OUTDOOR
PARK. With a wide selection of items that can be used outdoors
and in towns, it proposes urban outdoor styles that travel
between streets and fields.
By continuing to evolve as one and only commercial space,it will enhance the ability to communicate Parco brand.
Shinsaibashi PARCO is connected to its adjacent Daimaru
Shinsaibashi store with access ways and they create synergy as
unified commercial facilities. According to our buying dataanalysis, more customers buy in both stores than expected.
Cards and points can be used or earned in both Parco andDaimaru/Matsuzakaya stores and joint events are held. And
Parco finds and produces attractive content and proposes it toDaimaru/Matsuzakaya gaisho customers.
In order to make stores/content attractive, Parco entered a

Limited-time shop “Jiyu na Sebiro,” Shibuya PARCO

new business of developing and operating medical malls, and inNovember 2021, it opened the first site of a medical mall Welpa,
which seamlessly provides healthcare, products, and services,on the 10th floor of Shinsaibashi PARCO. Its seven tenants
including a gynecological clinic and a femtech shop, and alounge and a gallery provide a wide variety of products andservices that are useful for daily self-care, ranging fromhealthcare to food.
We will develop new markets in the Shinsaibashi area tocontribute to attracting crowds to and revitalizing the area while
creating the Group synergy.

Renew mainly major stores in fiscal 2022Real×Digital Strategy of SC Business
The greatest focus of Parco (SC Business) in “making stores/content attractive,” which is the axis of the Real×Digital
Strategy, is on creating the irresistible value that makes
even people who are used to using online services including
e-commerce “want to visit physical stores right now.”
Shibuya PARCO reopened in November 2019 after being
rebuilt and Shinsaibashi PARCO opened on the site of theformer north wing of the Daimaru Shinsaibashi store inNovember 2020 by changing its business format to PARCO.
Though both stores started full operation or opened amid
the COVID-19 pandemic, they perform steadily even in thecircumstances of living with COVID-19. Given this situation,
it can also be said that they do not realize their inherent
potential yet and further development in the future isexpected.

(Upper) PARCO OUTDOOR PARK, Shibuya PARCO(Lower) Welpa Shinsaibashi, Shinsaibashi PARCO

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INTEGRATED REPORT 2022

In fiscal 2022, we are working on large-scale renovation in responseto changing times in major stores including Ikebukuro PARCO andNagoya PARCO.
In Ikebukuro PARCO, we introduced new shops with the themesof “athleisure,” “skincare / inner beauty,” “food,” and “culture” andcompleted renewal in April 2022. We strengthened genderless andageless offerings by renovating the entire ground floor for the firsttime in about 16 years and renewing the lower floors of the mainbuilding on which mainly ladies fashion items had been provided fora long time. At the same time, shops in the game and animation
culture fields were introduced on the 5th floor of the main building tocontribute to making the area more attractive and attracting new
crowds to the area.

In Nagoya PARCO, we conducted large-scale renovation of 13,000
square meter area, which is approximately one third of the total floorarea, in the three buildings including the west building, the eastbuilding, and the south building by May 2022. First, the west building
was upgraded to provide high quality products and space focused on
fashion, culture, and beauty. The east building evolved into an
entertainment-specific building and new zones for events and live
performance were newly created to attract crowds. And in the southbuilding, we are working to provide unique floor layout and item
selection by operating a grouping store of a leading apparel company
Baycrew’s on four floors. We will strive to further polish up our physicalstores to make them a “place in which customers can encounter
attractive products and services and gain high quality experience.”

CASETiFY STUDiO on the 1st floor of the main building ofIkebukuro PARCO

MEDICOM TOY PLUS NAGOYA on the 1st floor of the west
building of Nagoya PARCOINTEGRATED REPORT 202249