FamilyMart Co.,Ltd. (E03125) Stock Price

**FamilyMart's Business Operations**

FamilyMart is a retail company with convenience store operations as its core business. The company operates convenience store chains not only throughout Japan but also across Asia, including Taiwan and China, providing daily necessities, food, and various services 24 hours a day. The group consists of 33 companies and, as a member of the Itochu Group, receives support in product procurement and logistics.

The company's primary customers are individual consumers, with convenience store operations forming the center of its business revenue. In addition to selling food and daily necessities, stores provide lifestyle-related services such as public utility bill payments and parcel delivery acceptance, establishing a stable revenue base. The company adopts a franchise model, with royalty income from affiliated stores serving as an important revenue source.

The company's business is divided into two main segments: convenience store operations and other operations. For convenience store operations, the company expands its store network through domestic direct management, regional subsidiaries in Okinawa and southern Kyushu, and local subsidiaries in Taiwan and China. In other operations, the company operates diverse services aimed at synergies with its convenience store business, including FamiPay (an electronic payment service) operated by FamilyMart Digital One, senior meal delivery services through Senior Life Create, and credit card operations through Pocket Card.

FamilyMart has designated the fiscal years 2022 through 2024 as "three years to realize renewed growth," during which it is implementing fundamental business reforms to improve profitability. The company aims to build a new growth cycle through two complementary strategies: "strengthening the foundation of CVS operations" based on three core strengths—store network, brand, and customer base—and "expanding new businesses leveraging this foundation." With improvement in net income attributable to parent company shareholders as a key metric, the company is pursuing store quality enhancement through cost structure reform and optimized digital utilization.

In technological innovation, FamilyMart is actively working to streamline and reduce labor requirements in store operations. The company is introducing AI-powered store manager support systems and automated beverage stocking robots to address industry challenges such as labor shortages and rising personnel costs. Additionally, by developing new store formats such as unmanned checkout stores, the company is enabling expansion into locations and regions where conventional store openings were previously difficult, thereby acquiring new markets through increased store count and sales floor area.

In new business expansion, FamilyMart is accelerating revenue generation in three areas: advertising and media, financial services, and digital commerce. In advertising and media, the company is advancing store digitalization by installing digital signage and developing proprietary advertising models that combine customer data analysis. In financial services, the company is strengthening its payment app "FamiPay" and expanding financial services including "FamiPay Next Month Payment" and "FamiPay Loan" to deepen customer engagement.

Regarding sustainability initiatives, FamilyMart is advancing greenhouse gas reduction, plastic reduction measures, and food waste reduction toward achieving "FamiMa eco Vision 2050." As distinctive social contribution activities, the company operates "FamiMa Food Drive" and "Children's Cafeterias" utilizing store space, differentiating itself as a company deeply rooted in local communities. By reinvesting revenues generated from these new businesses into store investment, the company aims to create a virtuous cycle that further strengthens CVS operations.