HARD & GREEN (H&G)

It provides hardware, garden plants, and other necessities from convenient location.

SPECIALTY STORE FORMAT OF ORIGINALITY

H&G is our original store format which concentrated its assortment on HC's core categories such as DIY articles and gardening goods. Its current standard selling space is about 1,000 sq. meters (approximately 10,764 sq. ft.), and 15,000 items are held. As this format has been developed, from the beginning, as a vehicle of chain store system, ideas for low-cost run thoroughly from store location to daily operation, resulting in high profitability. For instance, while general HC format needs population of 30,000 or 50,000, our H&G can run its business in less competitive area with just 10,000 residents. From this, H&G has a wider choice for its location, and can expand its store chain quite rapidly.

THE POWER OF CHAINSTORE SYSTEM

Although DIY merchandise has low turnover ratio and live plants require careful control of freshness, H&Gs obtain high efficiency as a whole chain by combining original logistics and information systems with an advantage of mass derived from hundreds of stores. Even if others can copy specific H&G store in floor layout or merchandise assortment, total system does not work without three digits store count. That is the reason why H&G has been kept its unique existence in home improvement retailing.

GETTING MORE LOCALIZED BY DIVISIONAL CONTROL

Since 1996, Komeri has introduced "divisional control system" for achieving 1,000 stores all over the nation. Each divisional office is located beside a distribution center that covers the logistics for all stores within a division. This improved the flow of merchandise and information to higher level where we could not reach through strictly centralized management. Now we can understand the local tastes and seasonal needs in particular market better, and respond it quickly with the most suitable assortment adjusted for each store.

Home Center (HC)

It pursues originality through its rich and specialized assortment of products, suitable even for professionals.

CONSTANT EVOLUTION

In Japan, HC format has been developed and grown as a store that sells not only home improvement goods but also various articles except food and clothing. However, as serious competition among retail industry expands beyond store formats, the essence of HC format comes into question as a specialty store. In order to respond to consumers' expectation, Komeri HC has been strengthened the assortment of core merchandise category such as DIY or gardening since opening of first store in 1977. Recently we are trying to expand our market by attracting more farmers and builders by adding special annex for building and agricultural materials to our HC.

AS A FLAGSHIP OF FLEET

Our strategy for market dominance begins with setting up several H&Gs in towns and villages that surround a city, the kernel of local market. After H&Gs prepared for siege, our HC comes out in the center of market to beat competitors directly. We refer to this process as "a fleet method". By combining large and small stores, we can serve all over the market without a gap, and build a dense dominant area. Since a wide and deep assortment of HC and localized convenience of H&G supplement each other, we can correspond with market's demand quite flexibly, resulting in great advantage to competitors.

THE CHALLENGE OF "KOMERI POWER"

Our new store format named "Komeri Power" is developed in pursuit of the ideal of a big store for home improvement in Japan. Komeri power earnestly offers quality merchandise toward professionals such as builders and farmers, attracting more Do-It-Yourselfers that have traditionally supported HC business in Japan. In addition, we set up special counter for professionals to provide them fine and custom-made services. For homeowners, "the design center" is located at the center of sales floor to offer various suggestions for housing renovation as well as installation services. The challenge of Komeri Power is to be an innovator in the distribution channel of professional-oriented products, as well as to be a total supplier of merchandise and service for home improvement that has been long waited by all homeowners.