This is to announce that as of March 18th, 2020, we have delisted from the First Section of the Tokyo Stock Exchange.
This page contains IR information that were released before the delisting.

Medium-term Business Plan

The Medium-term Business Plan for FY2017-21 has been developed based on PARCO Group’s Long-term Vision established in 2014.

Outline of the Medium-term Business Plan

PARCO will contribute to city maturity by leveraging the businesses of the entire Group, including the Stores Business, to meet the diversifying needs of consumers who enjoy urban lifestyles and business owners active in urban areas through the provision of unique PARCO values, such as personal fulfilment, new inspirations, and contentment.
To achieve this, PARCO Group will update its businesses and expand into new business areas to improve existing value provided and realize business portfolio innovation.

Outline of the Medium-term Business Plan

Three tactics and four directions for realizing the Medium-term Business Plan

PARCO Group aims to achieve further growth by realizing business portfolio innovation through its three tactics to evolve the store brand, produce commercial real estate, and expand soft content, and widen the unique value it provides to urban areas.

Three tactics and four directions for realizing the Medium-term Business Plan

The three tactics are to be driven by the following four directions for business restructuring:
  1. Expand domain to include commercial real estate and soft businesses that leverage PARCO’s intrinsic expertise and capabilities.
  2. Increase operational efficiency through business resource choice and focus – be a compact, high-yield business group.
  3. Widen unique value provided to meet the diversifying needs of urban consumers and business owners.
  4. Develop a corporate culture that expands our purpose in society.

Parco Group will contribute to the J. Front Retailing Group Vision of inventing a new happiness for daily life by advancing the three tactics and the four directions.

Tactic 1 Evolve the store brand

Aim to evolve the PARCO store brand by applying concepts developed through the creation of the new Shibuya PARCO to strengthen Urban Stores, upgrading tenant services and stabilizing earnings by realizing next-generation commercial spaces that provide consumers with a genuine retail experience.

Strengthen Urban Stores

Shift business resources to Urban Stores with high profitability and growth potential, and develop shopping complexes from the store-based model generally accepted by store owners and consumers that primarily involves the sale of goods into next-generation commercial spaces offering experiences based on services and information sharing.

Increase the Stores Business’ advantages and differentiate from competitors through mutually beneficial collaborations with merchandising, restaurant, and crowd funding businesses that accommodate diverse lifestyles, and encourage the growth of each business.

Create a new Shibuya PARCO
Proceed with the reconstruction of Shibuya PARCO, the point of origin for the PARCO Group, and share the essence of concepts used in the creation of the new Shibuya PARCO (scheduled to open in autumn 2019) throughout the Group in order to create next-generation commercial spaces.
Shibuya PARCO to enter a new stage in 2019

Advance a scrap and build policy for stores

PARCO Group takes into consideration all factors, including changes to the commercial environment, future return on invested capital, and the contract period on the property, in its decisions to close stores. It has decided to close Otsu PARCO at the end of August 2017.

Diversify tenant services and provide enjoyable experiences

Incorporate a CRM* strategy that leverages ICT and PARCO’s unique perspective to expand services available to consumers and tenants.

Create fresh customer experiences by uncovering new talent and forging partnerships with new creators and other companies for new collaborations.
*Customer Relationship Management – a management method that utilizes customer data to increase customer satisfaction.

Tactic 2 Produce commercial real estate

Secure business locations centered on urban areas with growth potential and in which stores have not yet been opened. Engage in diversifying development schemes and expanding business variety by creating new business categories in addition to PARCO Stores and ZERO GATE Businesses.

Provide unique solutions for shopping complex operators and tenants, such as the Group’s Space Engineering and Management Business and Web Consulting Business.

Increase sources of revenue through the realization of these initiatives.

Expand ZERO GATE Business, diversify business categories, and diversify development methods

Aim to develop 12 projects over five years, including four PARCO stores, five ZERO GATE stores, and three projects in new business categories.

Consider a cyclical real estate investment model to improve real estate development capabilities and asset efficiency.

Publicly announced development projects:

PARCO Ueno Matsuzakaya New South Wing Store (autumn 2017), new Shibuya PARCO (autumn 2019)
ZERO GATE Kyoto (FY2017), Harajuku (winter 2017), Sannomiya (to be decided)
New business Kinshicho (H2 FY2018), Okinawa Urasoe West Coast Development Plan* (summer 2019) *Joint venture with SAN-A CO., Ltd.

Provide solutions

Expand orders and revenue at PARCO SPACE SYSTEMS for its facility space business by employing multi-skilled staff to provide client-tailored innovation proposals.

Expand business at PARCO Digital Marketing, a business specializing in providing web consulting for shopping centers, to provide services for the next generation of shopping centers through new development, and strengthen partnerships that support upgraded services and new technology.

Tactic 3 Expand soft content

Evolve existing content and create new content in the Entertainment Business, which offers unique soft content, and advance the expansion of Group companies into new specialist store areas in the Lifestyle Business. Act as an incubator by collaborating with new creators and companies to provide fresh consumer experiences.


Increase the scale of entertainment provided by the Entertainment Business by launching a new PARCO Theater and acquiring live entertainment venues, deepen the promotion functions of PARCO stores, and strengthen content business development and expand it outwards.

Lifestyle proposals

Expand NEUVE A to open shops in urban areas in both existing and new business categories, and fully launch an EC* service. Consider partnerships with companies outside the Group with the aim of expanding its business area. *Electronic Commerce

Overseas Business

PARCO Group will develop content in Asia, advance its engagement of inbound and outbound demand through overseas shopping center collaborations, and raise awareness of the PARCO brand in the region.

Develop a corporate culture that expands our purpose in society

PARCO Group recognizes its role in society as a provider of incubation, urban revitalization, and trend communication, and aims to develop a corporate culture that harnesses the creativity of Group employees and the abilities of external partners to collaborate to create and deliver value that exceeds market expectations.

To achieve this, PARCO Group will carry out organizational reform and innovate its human resources policy to advance diversity and inclusive management, and develop sustainable operations that are considerate of concerns such as lifestyle choices, social responsibility, operational efficiency, and governance.

Quantitative business targets

From March 2017, the start of this Medium-term Business Plan, PARCO Group has adopted IFRS in order to strengthen efforts to boost profit creation capabilities by improving the international comparability of financial information for PARCO Group stakeholders and increasing understanding and awareness of its business model by more accurately reflecting it in financial statements.

The application of IFRS will be taken as an opportunity to increase operational efficiency through management innovation, such as putting greater focus on cash flow and the balance sheet.

PARCO Group will operate Group Companies with the goal of increasing profitability.

Target results

By implementing the measures set out in this plan, PARCO Group aims to achieve a consolidated operating income of \14.7 billion, EBITDA of \23.5 billion, and a consolidated ROE of 6.5-7.0% by FY2021, the final year of the plan.

Quantitative business targets for FY2021
Operating income was given a temporary boost in FY2016 by special circumstances such as the decision to temporarily close Shibuya PARCO for reconstruction, the closure of Chiba PARCO, and the decision to close Otsu PARCO. The table below has been amended to give a more substantive comparison of the fiscal years. 

Unit: billion yen

Consolidated FY2021 target FY2016
FY2021 plan
FY2016 actual
Growth Difference
14.7 11.5 127.8% +3.2
EBITDA *1 23.5 16.8 139.9% +6.7
ROE *2 6.5 - 7.0% 6.1% - +0.4 - 0.9%
Unit: yen
EPS *3
(Earning per Share)
92.02 68.94 - +23.07

Note: An IFRS reference for the FY2016 results that reflects the Japanese GAAP results using IFRS has been made but is still being audited. Therefore, there is a possibility that figures may be amended further.
*1 EBITDA in this table refers to operating income plus depreciation and amortization.
*2 ROE in this table refers to income attributable to owner of the parent divided by the average number of common shares outstanding for the period.
*3 EPS in this table refers to income attributable to owner of the parent divided by the total number of shares outstanding.

Business portfolio innovation

PARCO Group will innovate its business portfolio to shift weight from the Stores Business to other businesses.

Business portfolio innovation(Projected)

Business portfolio innovation

Capital expenditure plan

PARCO Group’s capital expenditure plan involves a cumulative total investment of \66.8 billion over the five years of the plan, comprising \40.4 billion in strategic growth investments such as shopping complex development and new business, and \26.4 billion in operational investments such as store refurbishments and related business.

PARCO Group also plans to create \77.3 billion yen in operating cash flow over five years.
(Note) The above release was created based on the information available at the time of announcement. Actual results may differ due to various unforeseen factors.

Updated May. 29, 2017
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Updated Mar. 23, 2020