The line of our consistently growing business was originally sales of mens' suits and according to the needs of the times, it has moved onto casual clothing and sporting equipment. The category shifts were made to give it a metabolic change when prevailing business was still strong.  The original style of the current business model was formed based on the know-how gained during the transformation times.  On solid financial foundation, we also control our management by utilizing an operational indicator which was made based on merchandise turnover ratio, sales proceeds, net profit margin and so forth.  The know-how acquired through these activities is shared amongst the groups and applied to future strategies and plans.

We have been working on the business selection and focus since our "Value Creation Project" in 2001. 
ur mid-term business plan "X10 PROJECT" announced in November 2005 situates the following three years as a period to establish a growth structure for the future that can stand up to a tough business climate.  By defining increasing customer loyalty and satisfaction as our shared value, the X10 PROJECT seeks to make XEBIO the "only one" sports corporation through qualitative business expansion.

By adopting the perspective of customers who are always seeking new products, we will steadily maintain a variety of items while improving the business system and logistics structure and coordinate the quickest possible merchandise procurement.

As for the 52 week merchandising, we will continue proposing new products that can meet the customers' requests in accordance with the local climate and events while adding various improvements in sales space, commercial items and sales promotion.

By utilizing the buying power combined with the Victoria subsidiary and sharing sales information, we build a win-win relationship while deepening the cooperative business partnership with the suppliers.
We are working on improving the rate of fixed price sales as well as early input of commercial goods to reduce financial loss made by discount sales.  We also train our sales staff proactively in their technique to attend to customers in order to sell new products as soon as possible.

As an improvement measure of logistics structure whose goal is "0% of the articles on the display inventory out of stock at opening time on Friday", we promote both reducing lead time and cutting down costs by having the goods delivered daily from our own distribution center and expanding the direct delivery system without inspection from the suppliers with accurate deliveries to the stores.

Through sending out one to one information to about 2,300,000 members of our group card, we encourage the customers to return to the stores to shop and promote maintaining customers of different generation groups such as from students to seniors.

As for the reinforcement of licensed products, we will establish Japanese style merchandising by exchanging and sharing information regularly on trends with the British company, NEXT Ltd as well as converting British sizes to Japanese ones.  We are also encouraging the 320,000 NEXT card members to gain membership and seeking to increase those becoming loyal customers by e-mail magazine and DM.

Regarding the sports business, starting from this term, 30-40 large-scale sports stores sized about 3300 m² are planned to be in operation, including scrap and build, in the next three years.  As for the NEXT enterprise, we are considering establishing flagship stores in the city center as well as in RSC.

By restoring profitability each month at all branch stores and improving merchandise turnover, we are aiming to use our own financial resources while gaining strategic investment resources. We also promote what is mentioned in the following statements.

*Enhance general sporting items
*Improve gross margin ratio by cooperating with XEBIO
*Streamline the function of the headquarters with the integration of computer systems
*Enhance the sales of golf equipment by introducing a systematized process from sales technique to floor display
*Establish EC site

We will develop business that pursues the brand value of the three business categories (golf, outdoor and general sports) of Victoria to its maximum at every store.