Japanese Retailer Profits from Massive Cost Cuts

Massive cost reductions have helped Japanese retailer Aeon Co. get back to profitability, posting a net profit of 19.27 billion yen ($219 million), compared with a year-earlier loss of 2.49 billion yen, reports the Wall Street Journal.

 

In an interview with the Journal, Aeon's chief financial officer, Seiichi Chiba, said the cost cuts in labour, sales promotion and store facilities are happening faster than planned.

 

The Journal notes that Aeon's general-merchandise-store business alone purged 11.8 billion yen in costs in the first quarter, representing 60% of the targeted 20 billion yen in savings for the full business year ending February.

 

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