Hard&Green ---The Original and Unique Format

Our original H&G format features gardening products and items, as well as hardware and tools for DIYers. H&G is capable of running profitably in merchandising areas with as few as 10,000 consumers, compared with more than 50,000 required in general by other retailers in the industry. Its small store scale keeps investment to a minimum, allowing smooth implementation of store development through our cluster method while meeting the demands of local markets.

Information and Distribution System ---The Innovative Ones

KOMERI spent many years building and refining our distribution systems, the foundation of our low-cost operations. Our distribution system is adept at handling multiple product types, small-lot orders and bulk deliveries, providing efficient product flow for all products, regardless of size. Nearly 70% of all products we sell pass through our distribution centers, resulting in substantial cost savings. Another advantage from our distribution system is integrated product flow information. As a result, we installed a Companywide information network centered on a point-of-sale (POS) system that automatically reorders products low on stock, modifies sales prices and transfers products between stores to minimize each store's inventory.

Mass Merchandising and Clustered Store Openings

Boasting the top number of stores in the home center segment, KOMERI derives numerous benefits from its clustered store development strategy and is fortifying its mass merchandising capabilities. Individual stores have relatively small sales volume because of their scale. However, clustered store location creates opportunities to achieve economies of scale while maintaining the flexibility to provide individual products, facilitating the ability to hold mass sales. This capability is an important feature in store developments of H&G, which offers an abundance of products in specialized categories. KOMERI is also expanding its volume purchases from, for example, hardware and special tool manufactures and increasing its volume imports from overseas suppliers, ensuring a stable supply of products.