Stewardship Activities TOP

Retail Company A

Food discount stores primarily focused on regional expansion

Challenges

Low awareness of the necessity of cost control focused on labor costs
Delay in establishing a store opening system for growth
Waste of management resources due to rescue-type acquisitions and diversification

Proposals

Optimization of personnel
Suspension of acquisitions or new ventures that do not lead to the strengthening of the business model
Reduction of the shareholding ratio of major shareholders

Engagement-related track record

*Major track record only

2017
~2018

❶ Dialogue with the president

Daiwa Asset Management
The company (Retail Company A) has shown signs of a weakened cost structure, and we have proposed a review of its personnel control, acquired companies and new ventures.
The Company
The company acknowledged that the proposed matters represent its challenges and indicated that it was taking steps toward implementing countermeasures.
2020

❷ Dialogue with the president and sending of our engagement letter

Daiwa Asset Management
The company has not demonstrated any improvement in labor productivity or sales efficiency per area, and the monetization of the acquired companies and new ventures has been progressing very slowly. We pointed out to the company that its management decisions at the time were flawed in terms of cost structure and store structure. Therefore, we requested that the company improve its store establishment system, review its unprofitable operations, and focus resources on strengthening its core business rather than diversifying.
The Company
The company acknowledged that the proposed matters represent its challenges and indicated that it was taking steps toward implementing countermeasures.
2021
~2022

❸ Dialogue with the president and sending of our engagement letter

The Company
The company reviewed its strategy for new businesses and announced a shift in policy from “growth” to “maintenance of the status quo.”
2023

❹ Dialogue with the president

Daiwa Asset Management
In line with the proposals from Daiwa Asset Management, the company has made progress in strengthening its store establishment system. Furthermore, we requested that the company implement dominant store openings centered around the operation center, along with appropriate staffing and strategy execution.
The Company
The company expressed its intention to focus more on dominant store openings in the future.

Engagement-related track record and stock price trends

End of 2016 to end of 2023
*Major track record only

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