Despite a 1% decrease in sales from March to November, Takashimaya reported strong operating profits of 54% to about 10.5 billion yen. Sales for high-priced items such as jewelry and art were down as consumer sentiment is still lagging though sales for fall/winter apparel were up as the temperatures went down.
Takashimaya was able to increase operating profit even while sales were down through a series of cost-cutting measures including advertising, administration, and sales staff. With their renewed Osaka store showing strong sales, Takashimaya increase sales staff while at cutting sales staff at weaker selling stores in Shinjuku and Tachikawa.
Takashimaya forecasts full year (ending February 2011) operating profits at 15 billion yen, a growth of 12% while expecting continued sales decreases of 2%.
Takashimaya is a good example of how to increase profits while steadily losing sales.
Data Japan Department Stores Association, Takashimaya Co.