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20/27 Market Circumstances
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00:33:58.8
Now, regarding market conditions, as you well know, there are too many stores. And there is competition with convenience stores. Supermarkets have to compete not only with convenience stores, but also other stores. Stores such as drugstores and home centers have started to handle food. Discount stores also handle food. Therefore, supermarkets have been put in a very difficult position. As a result, as you know, consolidations and M&A were promoted in the supermarket industry. I think more local supermarkets will fall by the wayside. What should we do about this situation? What will be different, if we maintain our physical distribution system, as Komatsu mentioned earlier? We now deliver about 30% of our products directly to stores. About 70% of our products are sold through wholesalers. Products are first delivered to wholesalers, and then delivered to stores after being sorted. If we established distribution centers, our products could be delivered directly from them. Setting aside what we will do regarding commercial distribution, if our products, which are delivered through wholesalers, are delivered directly, it is clear that our costs will be reduced. Therefore, if rationalization is requested for this reason, wasteful expenses, which are incurred by delivering through dealers, could be reduced through direct delivery. We are now developing an infrastructure to be able to make this proposal.
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