MUJI is dedicated to providing lifestyle products of beauty, art and taste from Japan; we will explore the creation of "a simple, elegant and comfortable lifestyle."

As a store dedicated to providing lifestyle products of beauty, art and taste, in FY2012, our domestic business aimed to offer a "simple, elegant and comfortable lifestyle at reasonable prices," and strived to strengthen such initiatives as "strategic products," "joint promotion by Garment, Household, and Food Departments," and "interior coordination consultation events." In our stores, we are now tasting the fruit of our many efforts; we have successfully met the challenge of creating wonderful new salesfloors, as seen in the Mujirushi Ryohin LUMINE Shinjuku, Sogo Chiba, and CELEO Hachioji stores. Moreover, for clothing, we returned product lineups back to basics, and have been steadily selling at full price, which has contributed to the improvement of our gross profit ratio. The entire company has also focused on reducing costs, and we are now seeing improvements.

In our overseas business, we were affected temporarily by current situation in China, which is the central pillar of our growth; however, sales have now recovered and are increasing satisfactorily. Since the Lehman Shock, business in the United States has been hard, but to help encourage healthy growth we are promoting the launch of our first store on the West Coast (San Francisco). Sales in the European region though are having a difficult time in the midst of an economic crisis, and additionally, in Asian countries, stock control problems resulted in a worsening gross profit ratio and lost sales opportunities; this is an issue we have to tackle.

In FY2012 we have also addressed the following main initiatives: "reconstructing household products," "increasing the number of customers," and "global stock control." For household products, we will aim at an early reconstruction by intensely strengthening our specialist expertise in "living" through products, sales, and logistics. To increase the number of customers, it is essential for us to create and put across new values. Our entire staff will also work together to speedily establish global stock control.

Our company will steadily explore a "pleasant life" as a store dedicated to providing lifestyle products of beauty, art and taste from Japan. With the goal of being a sustainable global company, we will strive to make a contribution to society by offering products and services that win the approval and confidence of customers.

We would be grateful if you would keep offering us your much appreciated support.

Masaaki Kanai
President and Representative Director