Big A Co., Ltd. President and CEO Uchiumi Naoya

2024.07.07

The power of discounts to deliver affordable prices and peace of mind to customers

President and CEO of Big A Co., Ltd.　Naoya Uchiumi (Utsumi Naoya)

■ Profile

After graduating from a university in Tokyo in March 1990, he changed jobs and joined Jusco Co., Ltd. (now AEON Co., Ltd.) in September 1996.
In July 2013, he became General Manager of Food Products at AEON BIG Co., Ltd., in March 2016 General Manager of Product Division at the same company, in May 2016 Director and General Manager of Product Division at the same company, in March 2020 Director and Head of Sales at the same company, in March 2022, he joined the DS Strategy Team at AEON Co., Ltd., in March 2023, he became Representative Director and President of MaxValu Minami Tohoku Co., Ltd., and in March 2024, he became Representative Director and President of Big-A Co., Ltd. (current position).

Big A Co., Ltd. operates a hard discount chain store focusing on fresh and processed foods under the management philosophy of "providing safe, high-quality products at lower prices, anytime, anywhere, to enrich the lives of our customers." We spoke with President Uchiumi Naoya about his career and the secret behind the low prices of his products.

Looking back on my university days, the four years have flown by in the blink of an eye. The valuable experience and time I gained during that time have become the foundation for my smooth work. What made a particularly strong impression on me was the New Year's holiday in 1989, when the Showa era changed to the Heisei era. This was also the year I began my job search. 1989 was also a year in which events occurred around the world that would shape the framework of the world as we know it today. I was enrolled in the School of Business Administration, but at the time I never imagined that I would one day become a CEO.

My career was shaped by changing jobs. I joined Jusco (now AEON) at the age of 28, and have since gained experience in a variety of business sectors. Before joining Big A, I was involved in the discount business at MaxValu South Tohoku. At times, personnel transfers did not go as I had hoped, but I always had the attitude of facing any difficulties head on. The diverse experiences I gained during that time have been extremely useful in my current job.

The AEON Group, where I currently work, is attractive in that it provides equal and fair opportunities to everyone, regardless of educational background, age, nationality, or gender. Another feature is that a diverse range of human resources, including people from Vietnam and China, are active regardless of nationality.

■The secret to offering affordable prices

My work at Big A focuses on realizing the discount philosophy of "a store that offers affordable prices and quick turnaround times." There are four main things we do to reduce costs.

The first is the comprehensive management of logistics. We have established a logistics system with the motto of "Establishing the first and only HDS chain store in Japan." Under this system, we ship directly from manufacturers to over 300 stores in the greater Tokyo area (one prefecture and four prefectures) every day. We operate from five logistics centers as bases for opening new stores, and we are always looking for locations that meet our requirements and formulating store opening plans.

Secondly, we are reducing costs by narrowing our product lineup and services. By focusing on daily necessities, we are providing a sense of convenience to customers. By limiting our services, we are eliminating waste and reducing costs. On the other hand, for products with a strong brand commitment, we place importance on offering a wide range of options. We are also aiming for efficient management of in-store displays.

Thirdly, we are working to reduce the time it takes to display products through the introduction of shelf-ready packaging (SRP). Typical examples include the use of original cardboard boxes and instant cup noodles that can be easily opened without the need for a cutter and then displayed as is. This has significantly reduced the time it takes to display products, allowing stores to be run with a smaller number of staff.

Finally, as a member of the AEON Group, Big A is working to develop original products that prioritize safety and security. Because there are limits to price competition, we try to differentiate ourselves from other companies by incorporating messages into our products.

■ Creating an environment where employees can work comfortably

In my work as a manager, I place great importance on on-site work. However, what I value even more is listening to the opinions of each and every employee. I try to increase employee motivation by valuing the voices of the employees on-site and reflecting them in management decisions. Regardless of the size of the store, it is necessary to check that the operations decided by headquarters are being properly implemented. If they are not, it is often embarrassing, so I try to visit the store frequently. I would like to continue to focus on creating an environment where employees can work comfortably.

■Expectations for Big A's growth

We are currently moving forward with plans to open new stores in order to continue growing in the future. In particular, cost reduction and low-cost operations are key to growth. We would like to focus on steadily growing our current company and fulfill our role as a social infrastructure.

To help Big A grow, we place emphasis on flexibility and quick thinking when recruiting new graduates to work with us. However, we have yet to fully communicate the appeal of the company to young people, so we are facing the challenge of how to disseminate information about it. In particular, Generation Z has a lifestyle-centered way of thinking, so we would like to take an approach that is in line with their values.

■Message to university students

In today's world, where information is overflowing, it's important to clearly define your goals and work hard toward them. However, in reality, it seems that many students don't have a clear vision of their future. When asked about their future aspirations at each stage of life during job interviews, most students were unable to answer. In today's world, where information enters us unconsciously, it is important not only to improve our ability to process information, but also to develop the habit of thinking. Maintain your beliefs and grow into someone who can make decisions even when faced with a vast amount of information. The experiences and connections I gained during my university days are still a great asset to me. I hope that you will gain a variety of experiences during your student life, interact with many people, and grow as a person. No experience is wasted. It will surely come in handy when you enter society.

Student Newspaper Online, June 6, 2024, Interview by Tsuda University 2rd year student, Karin Ishimatsu