Executing an Approach to Maximize Mall Value

AEON MALL operates approximately 160 locations in Japan highly regarded not only for convenience, but also as indispensable community infrastructure in the form of disaster relief facilities. As the business environment undergoes major changes in the wake of the COVID-19 pandemic, we recognize that our malls are also at a crossroads of necessary change.
In response to the Large-Scale Retail Stores Location Act of 2000, AEON MALL accelerated the development of large-scale shopping malls in Japan, and an increasing number of our malls today have now been in operation for 20 years. We must renovate aging facilities into transformed malls to maintain their necessary functions and continue to exist as part of the community. In response to ever-rising construction costs, we must face the challenge of adopting new development styles in addition to traditional suburban facilities design.
We must invest in existing malls in Japan to foster greater customer support and continue mall operations.

Increasing the Value of Existing Malls From a Long-Term Perspective

From a development perspective, we must rethink those malls that have been in operation for 20 years from a development perspective, proposing a new vision for the next 50 to 60 years.
Given future macro trends in Japan, including the population decline and depopulation, competition to meet declining demand will only accelerate the shakeout of commercial facilities in the future. If we can improve the functionality of our malls further and outlast the competition, we believe we will grow our market share and create a positive effect that outweighs the negative impact of the population decline. At the same time, we may need to make the decision to downsize certain malls, modify functions, or change business format in light of competitiveness and future market changes. By taking the lead in determining policies for each mall, our development department will encourage efficient capital investment.

Aspiring to New Development Patterns Through Co-Creation

In Japan, we continue to open malls that leverage our strengths in suburban locations, developing properties in areas where no malls exist. At the same time, it is true that there are fewer and fewer such facilities in Japan.
We believe that there are growth opportunities in participating in redevelopment projects in urban areas, given the fact that large-scale redevelopment projects will become more apparent in urban areas in the future as development properties that supported Japan’s period of rapid growth deteriorate over time.
JIYUGAOKA de aone, which opened in October 2023, is a mall we redeveloped to provide new commercial functions. The new mall sits on a site that we expanded to include adjacent land once used by a store operated by AEON Market. In this way, we believe we can secure growth opportunities in urban areas by reexamining AEON Group assets and introducing new commercial functions.
We continue to develop community-based projects in collaboration with various companies inside and outside the AEON Group. These partnerships include a collaboration with Marimo Co., Ltd., with whom we have a capital and business alliance.
The functions required of shopping malls are changing.
In the past, malls became popular for the convenience provided by the concentration of goods, services, food and beverage, amusement, etc. These functions alone will not be enough to keep pace with future changes. Our malls will interact with customers, local communities, employees, and other stakeholders at various times and places in their lives. The malls will become an indispensable presence that solves local issues, helping us accomplish our goal of community co-creation.