news

October 2020

To all union members　

Report on the financial situation of the University of Tokyo Co-op and requests to all members

The University of Tokyo Consumers' Cooperative Association Board of Directors
Representative Director/Chairman Jun Ishida
Representative Director/Senior Managing Director Tatsuya Nakajima

Thank you for your continued patronage of the University of Tokyo Co-op. Due to the spread of the new coronavirus infection, university campuses have been forced to limit their activities for a long period of time. I would like to sincerely apologize to all the members of the University of Tokyo Co-op for not being able to provide sufficient services due to shortened business hours, suspension of business, reduction of products and menus in purchasing and cafeterias.
The University of Tokyo Co-op is now facing an unprecedented financial crisis. We would like to ask all of our members to understand the current management situation of the University of Tokyo Co-op, and to keep the light of the University of Tokyo Co-op, which has supported the university life of our members since its establishment, from the campus. We would like to ask each and every one of you to support the University of Tokyo Co-op with further use and cooperation, including the use of school fees.

1. Status of use to date and management status of co-ops

• Since March, campus community activities have practically stopped. The University of Tokyo Co-op has been in close consultation with the university, and has been working on support for new students to prepare for their new life in the new semester, home delivery service for textbooks to support online classes, and support for school expenses.
• After the state of emergency was declared on April 7th, all stores were basically closed from April 8th, and we worked to the extent possible from the backyard, such as dealing with college expenses. From June, we have gradually resumed business while taking care to prevent the spread of infection. However, due to campus entry restrictions and the expansion of online lectures, usage continues to be extremely low.
• The total number of customers in August decreased by 2.08 million (down 83%) from the previous year for the co-op as a whole. The number of customers in both the cafeteria and purchasing departments has decreased by more than 1 million people each.
• Cumulative supply up to August has decreased by 1,925 million yen (-47.8%) from the previous year, halving, and business surplus as of August is in the red of -222.89 million yen. In the previous year, the cumulative surplus for August was 77.3 million yen, which is a decrease of about 300 million yen from the previous year, and we are facing an unprecedented management crisis.
• As for the forecast for the end of the current fiscal year, we expect a single-year deficit of approximately 400 million yen in business surplus, resulting in a cumulative deficit of approximately 340 million yen at the end of the fiscal year.

• As for the financial situation, the liquidity ratio was 154% as of the end of the fiscal year in August, and although there are no immediate cash flow difficulties at this time, it is highly likely that the same situation will continue in the future. Therefore, we will consider all possible measures, such as utilizing the new coronavirus infectious disease special loan, and strive to maintain and continue business activities.

2. About the business of each store after autumn

• From September onwards, with the exception of some experiments and practical training, most classes are expected to continue online. Amid concerns about the further spread of infection, it is expected to be extremely difficult for the use of travel services and restaurants to recover rapidly.
• The University of Tokyo Co-op is a co-op that supports the welfare of university members. Because it is a non-profit cooperative organization that aims to realize the economic and cultural needs of its members, rather than "pursue profits," even small stores that are difficult to manage alone can be managed by the co-op as a whole. We have managed to balance earnings. However, due to the spread of the new coronavirus infection, all the University of Tokyo Co-op stores are facing a management crisis, and it is difficult to operate the stores as usual.
• For this reason, after the start of the A semester, we will basically shorten business hours, and some stores will be closed until the end of the academic year if they are used very little. We apologize for any inconvenience this may cause to our members, but we ask for your understanding.

Business hours after A semesterhere

3. To overcome the unprecedented management crisis

• In order to overcome this unprecedented management crisis, the University of Tokyo Co-op Council has currently formulated a "Management Crisis Response Policy" and is working to implement it across the entire organization. The framework of the policy is (1) to further deepen cooperation and collaboration with universities and strengthen the role played by co-ops in supporting university management, (2) to strengthen initiatives to support student life and student learning, and (3) to strengthen cooperation between members. (4) Cultivate new business unique to university co-ops (5) Improve and strengthen online services.
• Under the current business environment where business scale reduction is unavoidable, streamlining and streamlining the co-op business will be essential. Reduction of business expenses includes items that have already been implemented, such as reducing director compensation, building an appropriate personnel system, maintaining employment and reducing personnel costs by making maximum use of employment adjustment subsidies, etc. work on.

4. Requests to members and users

  (1) If you are a student or faculty member of the University of Tokyo and have not yet joined the University of Tokyo Co-op, please do so.

• The co-op is operated based on your investment.
• The Hongo Membership Center, Komaba Co-op Office, Kashiwa Store, Ikaken Store, Komaba II Purchasing Department, Agriculture Department Store, and the National Astronomical Observatory of Japan are the contact points for joining.

https://www.utcoop.or.jp/news/news_detail_4880.html

 (2) When going to school, please actively use the co-op stores and cafeterias.

• Co-op stores are working on infection prevention measures so that you can use them with peace of mind.

https://www.utcoop.or.jp/news/news_detail_5665.html

 (3) Please actively use the University of Tokyo co-op for school expenses, especially information equipment and books.

• We ask all members of the Faculty and Staff Union to request the University of Tokyo Co-op to use school expenses.
• Please make active use of the online ordering service, book inventory search system, etc.

https://www.utcoop.or.jp/news/news_detail_5655.html

(4) Please cooperate with the investment increase.

• In the future, it is expected that the management difficulties will continue for a certain period of time due to the impact of the new coronavirus infection. Reinforcing equity capital is essential for stable management. The capital of the co-op is the investment of the members.
• If you have less than 16,000 yen (40 units) in capital, we ask that you cooperate with us in increasing the capital to 16,000 yen (please see the back of your membership card for your own investment amount). We hope that members who have already invested 16,000 yen will cooperate with us in further increasing the capital.

The University of Tokyo Co-op board and staff will work together to overcome the financial crisis.