Uny’s Healthy Growth and Reduced Cost Burden Likely to Lift PPIH’s Profits; Raising FVE to JPY 1,750

Flexibility is the essence of Don Quijote’s business model and is an underlying strength supporting its price leadership. As an early entrant to the fringe off-price retail market, Donki has built its success on Japan’s deflationary economy. Deep discounts offered by a broad array of off-price items lure consumers who trade down on commoditized products and seek bargains. A unique store concept with a mazelike layout and densely stocked shelves enhances the treasure-hunt shopping experience and draws many foreign tourists, whose spending makes up more than 5% of the group’s sales.