Human Capital Initiatives

The PPIH Group regards its people as its most important management resource and promotes human capital management centered on the growth of each individual employee, based on "The Source," our corporate philosophy collection. We support the autonomous growth of our employees by providing an environment in which they can proactively take on challenges through Delegation of Authority. Supported by a corporate culture that embraces failure and a Meritocracy system, we foster a virtuous cycle in which talent growth and business growth reinforce one another, contributing to the sustainable enhancement of corporate value and the creation of value for society.

At the PPIH Group, rather than focusing on "developing" personnel, we are committed to "supporting growth" by trusting and delegating to subordinates. This approach has fostered a corporate culture in which employees proactively take on challenges and grow through their own experiences. Furthermore, by clearly articulating the responsibility of developing one's own successor, we promote the continuous development of talent throughout the organization.
Talent growth is supported by our corporate culture of Delegation of Authority, which places decision-making authority in the hands of those closest to customers and the front lines. Employees are provided with abundant opportunities to think independently and make decisions on their own. In our stores, under the principle of Individual Store Operation, frontline employees take the lead in creating sales floors tailored to the needs of local communities and customers. Through these experiences, they develop a management perspective and the ability to adapt to change.
While these opportunities to take on challenges and make decisions inevitably result in failures at times, our culture embraces failure as a valuable opportunity for learning and growth. By encouraging employees to apply the lessons learned from failure to their next challenge, we support their continued development. In addition, Meritocracy, which evaluates employees based on measurable results, is deeply embedded throughout the organization. This creates an environment in which highly motivated talent compete, inspire one another, and continue to grow.
Built upon the three pillars of Delegation of Authority, Acceptance of Failure, and Meritocracy, our corporate culture regards growth in sales and profits as evidence of talent growth. This creates a virtuous cycle in which both our people and our business grow together, supporting the sustainable growth of the Group.

1. *1​Indicators, targets, and results are for domestic Group companies.
2. *2​​The target for developing mate employees as MD planners covers Don Quijote Co., Ltd., Nagasakiya Co., Ltd., and Tachibana Department Store Co., Ltd.

To promote understanding and practice of "The Source," we implement a variety of initiatives, including training programs and certification systems. By clearly articulating the Company's objectives and values, we enable employees to understand, interpret, and act independently based on them, thereby fostering an organization in which each employee can think and act autonomously.

• The Master of "The Source" Certification Exam is conducted twice a year for management　personnel who hold positions and responsibilities at or above a certain level
• Developing global masters to promote "The Source" overseas
• "The Source" General Level Exam is conducted twice a year for employees both domestically and overseas
• "The Source Explanatory Training" is held once a month to deepen understanding of "The Source" and acquire knowledge for its practical application
• Holding "The Source" karuta card game events
• To ensure employees worldwide work with a common perspective and direction, "The Source" is translated into multiple languages in addition to Japanese (English, Chinese (Simplified and Traditional), and Thai)
• Implement "The Source" training for new graduates and midcareer hires upon joining

In the new long-term business plan, "Double Impact 2035," we have outlined not only our management strategy based on changes in the external environment and growth opportunities for the PPIH Group, but also our human resources strategy to realize this vision and support our growth.

To realize the growth strategies set forth in our long-term management plan, Double Impact 2035, including expanding our store network, strengthening our deli and food businesses, and creating new business formats, we have redesigned our talent portfolio. By classifying employees into four talent categories based on the roles expected of them and systematically securing and supporting the development of the talent required for each category, we are strengthening the human capital foundation that supports sustainable growth. In particular, as a Group that views frontline strength as a source of competitive advantage, we position Operations Talent at the core of our talent portfolio and promote their development and optimal placement.

1. *1​ MD planner: Staff responsible for merchandising(MD) at the store level

At our Group, we emphasize growth support rather than traditional education and training.
We have established frameworks that promote self-directed growth and career development through training programs, in-house contests, and internal recruitment opportunities based on our concept of autonomous proactivity, whereby employees voluntarily step forward and participate on their own initiative. We also support the early development of new graduate employees by providing training opportunities from their first year that contribute to future career advancement.

Web seminars are held for all employees to promote personal growth that leads to the acquisition of new knowledge and skills. Employees serve as instructors, and lectures on a variety of topics are held each month.

To encourage ambitious employees to step forward with confidence through autonomous proactivity, we have expanded our development programs, centered on Proactive Training Programs that prepare participants for the positions and responsibilities they aspire to assume in the future. Through training tailored to each level, including Store Managers and Million Stars (Branch Managers), employees are provided with opportunities to acquire the perspectives, knowledge, and skills required for their next role in advance, building a foundation for future advancement. By supporting proactive learning and challenge-taking, we help employees broaden their career opportunities and realize their career aspirations.

In order to encourage employees to advance their careers and broaden their experience, we have established an internal recruitment system which allows employees who have been in their current division/position for at least one year, to challenge themselves in other divisions.

To identify outstanding talent in our stores, we hold an annual in-house competition called "Iron Men of Displays (D-Tetsu)", where participants compete in display techniques, speed, and marketing skills within a limited timeframe. The competition is open not only to regular employees aged 34 and under, but also to contract employees and mate employees (part-time and temporary staff).

To generate new businesses that will become future growth drivers, we hold the Creative Destruction Championship, an in-house contest for new business ideas that is open to all employees. Participants submit their ideas and advance through multiple rounds of screening before presenting directly to senior management in the final round. Winning proposals receive a budget for implementation, and the employees who propose them lead the projects through to realization.

To foster a corporate culture in which employees recognize one another's contributions and share appreciation and respect, we hold the PPIH AWARD, an annual recognition program based on the concept of creating opportunities for appreciation across the entire PPIH Group. Designed to recognize employees regardless of country, job function, position, or employment status, the program features multiple award categories that celebrate achievements and challenges across a wide range of business activities.

We are committed to developing the next generation of management talent who will drive the Group's future growth. By providing opportunities to acquire management perspectives as well as knowledge and experience in organizational management from an early stage of employees' careers, while creating an environment where employees can proactively step forward and take on challenges, we aim to cultivate leaders who will lead our future business growth.

To produce the next generation of management talents, we have been conducting a Next-Generation Executive Development Program for mid-level managers since 2022. Through practical learning that develops management knowledge and the ability to address business challenges in organizational operations, the program helps cultivate talent capable of leading the Company's future growth.

Under the Million Star Program, stores nationwide are divided into branches serving commercial zones with populations of approximately one million people, and Million Stars (Branch Managers) are entrusted with managing each commercial zone. By formulating strategies and creating stores that reflect the characteristics and customer needs of their respective regions, they promote more advanced individual store management.
Million Stars are selected through an open recruitment system that allows employees to apply regardless of age or employment status. By providing opportunities for advancement based on ability and performance, the program fosters motivation for growth among both individuals and the organization while promoting organizational revitalization through a continuous flow of new talent.

To discover and develop high-potential young talent, we implement projects in which young employees collaborate with executive-level employees to address business challenges.
In addition, participants are given opportunities to shadow senior management, including the CEO and COO, and gain firsthand insight into management responsibilities and decision-making processes.

At our Group, we have adopted HR systems that place greater emphasis on ability, performance, and willingness to take on challenges than on age or years of experience. By maximizing the strengths and potential of each employee through optimal placement and bold appointments, we promote the growth of both our employees and the organization.

We clearly define the competencies and requirements for each position and adopt a merit-based approach that places emphasis on performance and capability, without considering personal attributes such as age, gender, or nationality in evaluations. By making bold appointments based on employees' growth and demonstrated achievements, we encourage greater motivation and a willingness to take on new challenges.
We also practice optimal placement, ensuring that employees are positioned where they can maximize their strengths and potential. By providing an environment in which employees can build their careers autonomously and continue to grow, we drive higher performance across the organization.

We utilize "TaleQue," our proprietary talent management system, which visualizes employees' experience, skills, and career histories to support optimal placement and strategic appointments. The system also features a "Shining Flag" function that enables directors and HR personnel to identify and share employees with high potential, helping uncover talent and future leaders who may otherwise remain unnoticed across our nationwide store network.
By supporting the early appointment of promising young talent and the selection of future leadership candidates, TaleQue helps create opportunities for employees to take on new challenges and accelerate their growth under our merit-based HR system.

To ensure fair evaluations, all employees participate in evaluation interviews with their supervisors every six months. During these interviews, employees share their goals and future career aspirations with their supervisors, while jointly reviewing their progress toward goals, contributions, and achievements. Evaluation results are then shared with employees along with the reasons behind the evaluations, providing feedback that supports their continued growth.
In addition, we operate a bonus and salary increase system linked to both Company performance and individual evaluation results, ensuring that employees who achieve strong results are fairly rewarded.

Our Group currently employs 47,791 mate employees (part-time and temporary employees), calculated as the average number of temporary employees during FY2026 based on an 8-hour workday and 22 workdays per month. Under our individual store management approach, in which each store independently determines its product procurement and sales strategies, mates are the key contributors to store operations. With their deep understanding of local communities and customer needs, and as representatives of consumers themselves, mates play an essential role in creating attractive stores.
By creating systems and environments where mate employees can work with enjoyment and a sense of fulfillment, we aim to ensure the success of each employee, bring joy to customers, and become the best store in each local area.

• Introduction of the "FOR THE TEAM AWARD", which offers employees with the achievement-based rewards every six months, based on store performance and adjusted according to employment type and working hours.
• Develop MD planners from mate employees who have responsibility and authority over their assigned categories in stores and receive bonuses twice a year. （Participating companies: Don Quijote, Nagasakiya, Tachibana Department Store）
• Improving Store Operations through DX and AI.
• Regular Roundtable Discussions with Million Stars (Branch Managers)
• Improving Retention through New Mate Advisors