The Tokyu Group Formulates a Plan of Refining Retail by uwy11403

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									February 17, 2006
                                                                     TOKYU CORPORATION
                                        Retail-related Business Committee of the Tokyu Group


       The Tokyu Group Formulates a Plan of Refining Retail Business
            Launch of the ‘TOKYU SHOPPING REFINE PROJECT’
             Aiming to become a ‘Life Style Design – supporter’

Tokyu Corporation (Headquarters: Shibuya-ku, Tokyo, President: Toshiaki Koshimura) has
formulated a ‘Plan of refining its retail business’ as a basic strategy to promote a strategic
deployment of the Tokyu Group’s commercial facilities along the Tokyu Line (hereinafter referred
to as Tokyu area) based on total optimization viewpoints. Based on this fundamental strategy, the
company will actively pursue the ‘TOKYU SHOPPING REFINE PROJECT’ which refines Tokyu’s
entire retail business and individual commercial facilities.

In the plan, the concept of the Tokyu Group’s retail business within the Tokyu area is defined as a
‘Life Style Design – supporter’ (*1) that would continuously and beautifully enrich life values of the
‘Uptown and Garden City communities’. Also, the Tokyu area is divided into five categories (*3) 1)
“Character-specific” type, 2) “Brand-specific” type, 3) “Enjoying daily life” type, 4) “Sophisticated
lifestyle” type, and 5) “Symbol of area” type; with the axes of ‘Pursuing urban luxury/Enriched
accessibility of daily life’ and ‘Emphasis on fashionability /Emphasis on amenity’ (*2). In line with
the categories, the strategies of the existing group’s commercial facilities of each area and
development plans are redefined; the company redefined the store concepts to include
demographics, customer targets, MD grade and destination (*4) according to characteristics of
each area.

The company will refurbish its existing facilities in several series starting from the remodeling of
‘Kohoku Tokyu Department Store S.C.’ (Kohoku-ku, Yokohama-city – scheduled for a Grand Re-
Opening on Friday, March 17, 2006) in the name of ‘TOKYU SHOPPING REFINE PROJECT’
(*5) .The Tokyu Group also intends to carry out the role as a ‘Life Style Design – supporter’ for
the retail business in the development of key locations around Tokyu Line stations such as Tama-
Plaza, Futako-Tamagawa and Shibuya.

Tokyu Corporation started the Three-year Medium-Term Management Plan in the fiscal year
2005. In the plan, the company set a growth strategy to increase consolidated operating profit by
placing the “retail related business” as Tokyu’s third core business in addition to the
transportation and real estate businesses and bringing about the synergy and dynamics through
collaboration among the three core businesses within the Tokyu area. This ‘Plan of refining retail
business’ was formulated by ‘Retail-related Business Committee’ which was established in Tokyu
Corporation in April 2005 and retail related companies in theTokyu Group in order to achieve this
growth strategy.


A framework of the ‘Plan of refining retail business’ is attached on separate sheets.

*1) ‘Life Style Design – supporter’: a business which supports residents of the ’Uptown and
Garden City area’ in attaining the optimum and sophisticated lifestyle and enrichment of life
values and trends.

*2) Emphasis on fashionability: to recognize and attain the tangible value.
Emphasis on amenity: to recognize and attain the intangible value.

*3) “Character-specific” type: ‘urban resort shopping centers’ to cater to individuals who wish to
enjoy presentation of variety of choices and enjoy their leisure time
“Brand-specific” type: a ‘mecca’ for high-end customers, fashion leaders and trend setters.

“Enjoying daily life” type: ‘facilities providing comfortable lifestyle’ where people can relax and
enjoy a pleasant time in a environmentally pleasurable space

“Sophisticated lifestyle” type: ‘facilities providing sophisticated lifestyle’ where people can enjoy
convenience and familiarity as well as a fashionable atmosphere

“Symbol of area” type: symbolic shopping landmarks which accommodate various every day
needs and quality choices in the area

*4) Destination: the primary reason is to draw and motivate customers to purchase retail
merchandise focusing attention to the characteristics and the individual style of the stores

*5) The symbol mark of ‘TOKYU SHOPPING REFINE PROJECT’




(Reference) Today this material was distributed to the Kabuto Club, the Press Club of Land,
Infrastructure and Transportation Ministry and the Yokohama Financial Press Club.
PLAN OF REFINING RETAIL BUSINESS
Analysis of Commercial Facilities in Tokyu area;
  Status, Target, Future positioning and Concept.




                               RETAIL-RELATED BUSINESS COMMITTEE
                                        TOKYU GROUP
REFINE PLAN OF RETAIL BUSINESS ---TOKYU GROUP

1. PROFILE OF TOKYU AREA
■ Map of Tokyu Area
                                    20km                         10km                                                   ■■■TOKYU AREA (Areas around Tokyu Railway Line.
       TOKYU LINE                                                                                        Tokyo          Defined as “17 Cities and Wards where Tokyu Lines
       MINATOMIRAI LINE                                                                                                 are operated)
                                                                            Shibuya
       JR YAMANOTE LINE                          Shimotakaido                                                             Population: 4.81 million, Number of households: 2.29 million
       OTHER MAJOR                                                                                                        Taxable income/person: approx. 1.5 times the national average
       PRIVATE RAILWAY                                                                Nakameguro
                                                                 Sangen-jaya                                              Consumption expenditures in the area: 9,269.8 billion yen
       OTHER JR LINE                                                            Meguro                                    Average passengers/operation KM/a day : 2.6 million (top level
       TAMA RIVER                                                                            Gotanda                      of Japan)
                                           Futako-tamagawa     Jiyugaoka Ookayama
    30km
                                                                                              Oimachi                   ■■ iTS communications (CATV) service area
                                           Mizonokuchi      Den-en-chofu          Hatanodai
                                  Tama-plaza                   Tama river                                                 Subscriber household: approx. 1.07 million
                                                          Musashi-kosugi
                 Kodomonokuni                                                                                           ■ Tama Den-en Toshi (Tama Garden City)
                                                                                         Kamata
                                                           Hiyoshi                                 Haneda                 Area: 50 K㎡
                          Aobadai
                                                                                                   Airport                Population: approx. 570 thousand people


                      Nagatsuta                                                                                         ■ Remarks regarding TOKYU AREA
                                                                                  Kawasaki
                                                                                                                          TOKYU AREA:489 K㎡(1/3 the area of London, approx. 8
               Minami machida                        Kikuna
 Chuo-rinkan                                                                                                              times the area of Manhattan)
                                                                                                                          Population in TOKYU AREA is increasing; increasing ratio
                                                                                                                          (FY2005 to FY1999) is +6.5%.
                                                                                                                          Number of passenger in TOKYU AREA is also increasing:
                                                                                                                          increasing ratio (FY2004 to FY1999) is +5.3%.
                                               Yokohama
                                                                                                                   *Calculated by multiplying “average consumption expenditures of all households” in
40km                                                                                                               5 wards of Tokyo, Yokohama City and Kawasaki City and “number of households”
                                                                                                                   in the 17 cities and wards along Tokyu Lines respectively. (Source: Ministry of
                                                              Motomachi-Chinatown                                  Public Management, Home Affairs, Posts and Telecommunications)
                                                                                                                   *The above data are based on the latest figures available in the company

■ Image of TOKYU AREA
5 Best Popular 1: Tokyu Toyoko line 35.8%                1: Tokyu Toyoko line 19.1%             5 Best           Images of          [High class and urban area]
Residential    2:Tokyu Den-en-toshi line 31.8%           2: JR Yamanote line 18.2%              Affordable       TOKYU AREA         [Convenient and Good environment Area]
Area           3: JR Yamanote line 28.4%                 3: Tokyu Den-en-toshi line 17.6%       Residential
               4: JR Chuo line 27.5%                     4: JR Sobu line 15.2%
               5:Tokyo Metro Ginza line 19.6%            5: Keio line 15.1%                     Area                                 Source: Nihon Keizai Shimbun Inc,
                                                                                                                                     [Research of areas around railway in metropolitan ](Dec.2003)
                                                                                                                                                                                                 1
REFINE PLAN OF RETAIL BUSINESS ---TOKYU GROUP

2. Map of Tokyu area; major commercial facilities and future plan
■ Major commercial facilities developed by Tokyu in Tokyu Area        ◎Major commercial facilities         Tokyu Store                       ■ Major development plan of Tokyu area
                 30km                        20㎞                          10㎞                                                                Area around Shibuya   FY2007: Complete Subway
                                                                                                 Tokyo                                       station               No.13
                                                                                                                                                                   FY2012: Complete the mutual
                                                                                Shibuya                                                                            direct train service of Toyoko
                                                                                                                                                                   line
                                                                                       ◎          ◎Tokyu Dept. Shibuya Head Store                                  ・Redevelop the former Tokyu
                                                                                                  ◎Tokyu Debt. Shibuya Toyoko Store                                Bunka kaikan
         ◎Tama Plaza Tokyu S.C.                                                                   ◎SHIBUYA109                                                      ・Develop the top of the present
         ◎Tokyu Dept. Tama Plaza Store                                                                                                                             Shibuya station
                                                                                                  ◎109-②
         at Tama Plaza                                                                            ◎ONE OH NINE                               Futako-tamagawa       Total area:200,000㎡
                                                                                                  ◎Q-FRONT                                   East District          Commercial:63,000㎡
                                             Futako-tamagawa                                      ◎Cocoti                                                           Residence:89,000㎡
                                                                                                                                               FY2006: Start        Offices:41,000㎡
                                                                                                                                               FY2009:Complete

                                                                              ◎
                                            Tama Plaza                                            ◎Tokyu Square Garden Site
                                                                                                   (Den-en-chofu)                                      Area III
                                                 ◎
◎Tokyu Dept. Machida Store                                                                                                                                                             Area I
◎109MACHIDA
                             Tama Garden City
at Machida                                                                ◎
                                                     ◎                                                       Haneda Airport
                     ◎               ◎                                            ◎Tokyu Dept. Hiyoshi                                                             Area II
                                                                                   store at Hiyoshi
                                             ◎Kohoku Tokyu S.C.
                                             ◎Tokyu Dept. Kohoku
                                             Store at center Minami                                                                          Area around Tama-     Area: 38,000㎡
        Chuo-Rinkan       ◎                                                                                                                  Plaza station          Commercial:30,000㎡
                                                                                                                                                                      120 new tenants
                        ◎Aobadai Tokyu                                                                                                        FY2005: Start           Total area combined with
                                                                                     Queens Square Yokohama                                   FY2010: Complete        main building:60,000㎡
                        Square at Aobadai                                                                                                                           Residence:15,000㎡
                                                                                     ◎ [at!]
 ◎Grandberry Mall                                                                    ◎QUEEN’S EAST
 at Minamimachida
                                                   Yokohama                                             Tokyu Line
                                                                      ◎                                 Minatomirai Line
                                                                          Minatomirai
                                                                                                        Yokohama municipal subway
                                                                                                        Shinkansen
                                                                                                        JRYamanote and Tokaido line
                                                                                              Map drew up by Tokyu Research Institute,inc.


                                                                                                                                                                                                     2
REFINE PLAN OF RETAIL BUSINESS ---TOKYU GROUP

3. Concept of retail business
■ Slogan of Tokyu Group
                                                          ■ Image of Tokyu area                                   ■ Portfolio of Retail business:we develop appropriate business for Tokyu area
“Toward a Beautiful Age”
                                                           High class and urban area
                                                           Comfortable area to live and good streetscape
Beauty is the criterion that the Tokyu Group will use      This residential district is longed for living as it
                                                                                                                                                     Pursue Urban Luxury
to guide us into the coming age. The beauty we             has some kind of status and residences are                                             (meet needs for Special day)
pursue arises from harmony among individuals,              affordable.
society and nature to move the hearts of all,
spanning nations and generations. We at the Tokyu                                                                           “Character-specific” type                  “Brand-specific” type
Group are putting all our energy into achieving our
goal of creating a sound, healthy, and beautiful living                                                                                   ◎Yokohama Minatomirai            ◎Shibuya




                                                                                                                                                                                             Emphasis on Fashionability*
environment that moves the sprit. We want to play
our part in building a harmonious and compassionate




                                                                                                                   Emphasis on Amenity*
society, where each individual can live a happy and
fulfilling life.
                                                                 <Our principle>
                                                             To advance, promote,
                                                              enhance and enrich                                                                   “Symbol of area” type
     We work Retail business which
                                                            the quality and superior
     is appropriate for the image of
                                                          Lifestyle of the Uptown and                                                                   ◎Shibuya

      Tokyu Group and Tokyu area.
                                                           Garden City communities                                                                      ◎Tama Plaza
                                                                                                                                                        ◎Futako-tamagawa
                                                            We aim to play a role                                                                       ◎Jiyugaoka

■ Strategy of Retail-related business                          of a Life Style                                                                          ◎Machida
                                                                                                                        1
                                                             Design-supporter                                        “Enjoy daily life” type                              “Sophisticated            2
We aim to establish “Retail-related business”
 as our third core area of business after                                                                                                                                  Lifestyle” type
 transportation and real estate.
                                                                                                                                          ◎Kohoku                           ◎Aobadai
  Expect to generate a greater synergy through            ■ Strategy of retail business in Tokyu area                                     ◎Minamimachida                    ◎Hiyoshi
  partnership among core businesses.                                                                                                            Enrich accessibility of daily life
                                                           Formulate each strategy so as to generate synergy
  Established Tokyu Malls Development Co.,Ltd
  due to merger TMD Corp. and Tokyu
                                                           among Tokyu Group’s commercial facilities which                                   (provide utilities for comfortable life)
                                                           are widely developed, such as Department store,
  merchandising and management Co., Ltd.                   GMS, Super-market, Specialty store and Shopping
  Develop the areas around station frequently              center, etc.                                           *1 Emphasis on amenity: to recognize the tangible value.
  and efficiently; mainly in Tama Plaza, Futako-           Stimulate demands in Tokyu area and meet needs         *2 Emphasis on fashionability: to recognize the intangible value
  tamagawa and Shibuya.                                    sensitively.
                                                           Develop commercial facilities in Tokyu area
                                                           continuously and consciously.


                                                                                                                                                                                                                           3
 REFINE PLAN OF RETAIL BUSINESS ---TOKYU GROUP
  4. Current Positioning of 8 facilities and ideal situation (included redevelopment project of
  Futako-tamagawa and Shibuya.
                                                 Pursue Urban Luxury                                                                                                                        Pursue Urban Luxury
                                              (meet needs for Special day)                                                                                                               (meet needs for Special day)
             “Character-specific” type                                              “Brand-specific” type                                                    “Character-specific” type                                        “Brand-specific” type




                                                                                                                                                                       Queen’s           Development of Shibuya
                                                                                                                                                                        Square




                                                                                                                                                                                                                                                Emphasis on Fashionability *
                                                                                                       Emphasis on Fashionability*
                                                                                                                                                                      Yokohama




                                                                                                                                     Emphasis on amenity *
   Emphasis on amenity *




                                                                                     109
                                                                                   MACHIDA                                                                                                 Tama plaza
                                                                                                                                                                                            Tokyu S.C
                                                                                                                                                                                                                                        109
                             Queen’s Square                                                                                                                                                                                           MACHIDA
                              YOKOHAMA                                                                                                                                    Futako-          “Symbol of area” type
                                                “Symbol of area” type                                                                                                     tamagawa              Machida
                                                                   Tama Plaza                                                                                                                  Tokyu Dept
                                                                    Tokyu S.C.

        1                                             Machida                                                                             1
                                                      Tokyu           Aobadai                                 2                                                                                                                                        2
                                                      Dept              Tokyu
                                                                       Square
                                                                                                                                                     Grandberry Mall
                                                         Hiyoshi
                           Grandberry                    Tokyu
                              Mall                                                                                                                                                                                             Aobadai
                                                                                                                                                                                  Kohoku Tokyu
                                                     Kohoku Tokyu                                                                                                                                           Hiyoshi             Tokyu
                                                     Dept. and S.C.                                                                                                               Dept. and S.C.
                                                                                                                                                                                                             Tokyu              Square

             “Enjoyable                                                                   “Sophisticated                                “Enjoyable                                    Enrich accessibility of dairy life            “Sophisticated
              daily life” type             Enrich accessibility of daily life              Lifestyle” type                              daily life” type                           (provide utilities for comfortable life)         Lifestyle” type
                                        (provide utilities for comfortable life)


  Scale of
operation area                                                                                                                                                  *1 Emphasis on amenity: to recognize the tangible value.
                                                                                                                                                                *2 Emphasis on fashionability: to recognize the intangible value

                                                                                                                                                                                                                                                                               4
REFINE PLAN OF RETAIL BUSINESS ---TOKYU GROUP
5. Strategic development of retail business
■ Map of each facilities feature
                                  Pursue Urban Luxury
                               (meet needs for Special day)                                                      Enjoying Daily life            Sophisticated           Symbol of Area           Character-specific
                                                                                                                                                                                                                    Brand-specific type
                       “Character-                      “Brand-                                                         type                    Lifestyle type              type                       type
                      specific” type                 specific” type                                Role of      “Facilities provide         “Facilities provide “Facilities as                   “Urban Resort              “Facilities as Trend
                                                                                                   facilities




                                                                      Emphasis on Fashionability
                                                                                                                Comfortable                 Advanced Lifestyle” Landmark”                        Shopping Center”           mecca”
Emphasis on amenity




                                                                                                                Lifestyle”                  To Provide for not only   To meet various needs      To have an individuality   To target high-end
                                                                                                                To make people enjoy        convenience and           based on the area and to   and uniqueness. To be      customer and fashion
                             “Symbol of area” type                                                              pleasing time in fine space familiarity but high      be recognized as a         Concentrated on            leader.
                                                                                                                                            fashion sensitivity.      landmark of the area.      personal needs.

                                                                                                   market                                                                                                                        Regional –
                                                                                                                          Neighborhood - Community                              Neighborhood - Regional
                                                                                                                                                                                                                                Super regional
                          “Enjoy                 “Sophisticated
                                                                                                   Enriched       Hobby & culture             Fashion                  Accumulation and           Teenagers apparel          Luxury brand
                      daily life” type            Lifestyle” type                                                                                                      complex                    & goods
                                                                                                   contents       Amusement                   Foods                                                                          New luxury brand
                             Enrich accessibility of dairy life
                          (provide utilities for comfortable life)                                                Health &beauty              Household goods          Mixture each zone;         Business apparel &         Trend brand
                                                                                                                  Restaurant & cafe           Sophisticated casual     Goods, events,             goods
                                                                                                                                                                       moving the hearts.         Matures apparel &
                                                                                                                                                                                                  goods
 We aim to change commercial facilities
                                                                                                                                                                                                  Goods for families
which are passive for needs in Tokyu area
            to be active store.                                                                                                                                                                   Goods for couples
                                                                                                   commoditi
                                                                                                   zing                              Retain best customers. Strengthen branding campaign of Tokyu area

                                                                                                   Major        Grandberry mall             Aobadai Tokyu Square       Tama Plaza          Queen’s Square                    SHIBUYA109
                                                                                                   facilities   Kohoku Tokyu SC             Tokyu Dept. Toyoko         Machida Tokyu Dept. Yokohama                          Tokyu Dept. Head store
                                                                                                   (*plan)                                  store                      (*Futako tamagawa)
                                                                                                                                            Hiyoshi Tokyu                                            (*Redevelopment of Shibuya)

                                                                                                                                                   Refine the concept of each facilities
                                                                                                                            in line with market circumstances and competitive situation surrounding them.



                                                                                                            We encourage our whole retail business to achieve “individualization and differentiation”
                                                                                                               and “commoditizing and efficiency” thorough providing each benchmark facility
                                                                                                                    in each type and developing horizontally key-content and best practice.
                                                                                                                                                                                                                                                   5

								
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