It is a new contract method for opening a store in Walmart in our North American business.

• Traditional “revenue-sharing agreement”
  • A variable cost-type agreement in which a portion of sales is paid, and the payment amount fluctuates with changes in sales.
  • An agreement model primarily for stores with limited space.
  • For some agreements, we also successfully reduced the revenue-sharing percentage after the SWAP-driven sales increase.

• The recent “lease agreement”
  • A fixed-cost type agreement where a fixed amount is paid monthly as rent, regardless of sales.
  • An agreement model primarily for larger stores.
  • We anticipate significantly increasing sales per location through our PMI initiatives such as SWAP and Add on. In this context, fixing rent as a fixed cost could also present an upside.