notice

October 2020

To all union members　

Report on the University of Tokyo Co-op's business situation and a request to members

The University of Tokyo Consumers' Co-op Board of Directors
Representative Director and Chairman Ishida Jun
Representative Director and Managing Director Nakajima Tatsuya

Thank you for your continued use of the University of Tokyo Consumer Co-op (hereinafter referred to as the UTokyo Co-op). Due to the impact of the spread of COVID-19, the university campus has been forced to restrict its activities for an extended period of time. We sincerely apologize to all members for the fact that the UTokyo Co-op is unable to provide adequate services due to shortened business hours, closures, and a reduction in the products and menus available at the store and cafeteria.
The UTokyo Co-op is currently facing an unprecedented management crisis. We ask all members to understand the current management situation of the UTokyo Co-op, and to support the UTokyo Co-op by increasing its use and cooperation, including by using the stores and paying university fees, so that the light of the UTokyo Co-op, which has supported the university life of its members since its founding, does not go out from the campus.

1. Current usage and the Co-op's management situation

• Since March, campus community activities have essentially come to a halt. The University of Tokyo Co-op has been in close consultation with the university, providing support for new students in preparing for their new lives in the new semester, offering a home delivery service for textbooks to support online classes, and handling tuition fees
• After the state of emergency was declared on April 7, all stores were essentially closed from April 8, and we carried out as much business as possible from the backroom, such as handling university fees. From June, we gradually resumed business while taking care to prevent the spread of infection. However, due to restrictions on campus entry and the expansion of online lectures, usage remains extremely low
• The total number of customers for the entire Co-op in August was down 2.08 million (-83%) compared to the previous year. The number of customers in the cafeteria and purchasing departments both decreased by more than 1 million
• The cumulative supply volume up to August was 1.925 billion yen (-47.8%) less than the previous year, halving the figure, and the operating surplus as of August was a deficit of 222.89 million yen. Last year, the cumulative profit up to August was 77.3 million yen, so this is a decrease of approximately 300 million yen from the previous year, and the company is facing an unprecedented management crisis
• The forecast for the final financial results for this fiscal year is a single-year deficit of approximately 400 million yen due to business surplus, resulting in a cumulative deficit of approximately 340 million yen at the end of the fiscal year

• Regarding our financial situation, as of the end of August, our current ratio was 154%, and we are not currently in a situation where we will have any immediate difficulty in raising funds, but we expect that this situation will likely continue in the future. Therefore, we will consider all possible measures, such as utilizing special loans for COVID-19, in order to maintain and continue our business activities

2. Regarding store operations from autumn onwards

• From September onwards, most classes are expected to continue online, with the exception of some experiments and practical training. With concerns over the further spread of infection, it is expected to be extremely difficult to see a rapid recovery in travel services and cafeteria use
• The University of Tokyo Co-op is a consumer cooperative that supports the welfare of its members on campus, providing cafeterias, shopping, bookshops, travel services, and more. As a non-profit cooperative organization whose goal is not to pursue profits but to fulfill the economic and cultural needs of its members, the Co-op has been able to balance revenues across the entire organization, even for small stores that would struggle to operate independently. However, due to the impact of the COVID-19 pandemic, all of the Co-op's stores are facing a management crisis, making it difficult to continue operating as usual
• Therefore, after the start of A semester, we will be shortening our business hours as a general rule, and some stores with very little traffic will be closed until the end of the fiscal year. We apologize for any inconvenience this may cause to our members, and we ask for your understanding

Business hours from A semester onwards

3. Overcoming an unprecedented business crisis

• In order to overcome this unprecedented management crisis, the University of Tokyo Co-op Board of Directors has formulated a "Management Crisis Response Policy" and is working to implement it throughout the organization. The policy's framework is to (1) further deepen cooperation and collaboration with the university and strengthen the co-op's role in supporting university operations, (2) strengthen initiatives to support student life and learning, (3) further strengthen mutual assistance among members, (4) develop new businesses unique to the university co-op, and (5) improve and strengthen online services
• In the current business environment where downsizing is unavoidable, rationalizing and streamlining the Co-op's business is essential, so we will boldly work to reduce business expenses and review inefficient and unprofitable businesses. While some of the cost reductions have already been implemented, we will also work to reduce director compensation, establish an appropriate personnel structure, and make maximum use of employment adjustment subsidies to maintain employment and reduce personnel costs

4. Request to all members and users

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

• The Co-op operates on the investments of its members
• You can join at the Hongo Members' Center, Komaba Co-op Office, Kashiwa Store, Medical Research Institute Store, Komaba II Purchasing Department, Faculty of Agriculture Store, and National Astronomical Observatory

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

 (2) When commuting to school, please make full use of the Co-op's stores and cafeterias

• Co-op stores are taking measures to prevent infection 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 the use of school funds, especially for information equipment and books

• We ask all faculty and staff union members to use the University of Tokyo Co-op for the use of their school funds
• We ask that you actively make use of our online ordering service and book inventory search system

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

(4) Please help us increase our capital investment

• It is expected that the impact of COVID-19 will continue to cause difficulties for a certain period of time. In order to stabilize management, it is essential to increase equity capital. Co-op capital comes from the investments of its members
• We ask all members whose capital is less than 16,000 yen (40 shares) to help increase their capital to 16,000 yen (please see the back of your membership card for your investment amount). We would also appreciate members who have already invested 16,000 yen helping us further increase our capital

The University of Tokyo Co-op Board of Directors and staff will also work together to overcome this management crisis