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Notori To Hold Down Prices

TOKYO, JAPAN: Furniture purveyor Notori Holdings reported favorable earnings for Q1 of this year and have promised to keep their prices reasonable because consumers in Japan are increasingly price conscious.

“We will not raise prices for any reason,” Chairman Akio Nitori said. Customers “have grown sensitive to prices,” he said.

Nikkei reported the retailer had a net profit of 16.9 billion yen ($163 million) in the March - May period seeing a growth of 43 percent, a record for the first quarter. Their sales increased by 15 percent to 137 billion yen.

Products that had strong sales were cool-feel bedding and other functional offerings. Notori were also able to cut costs by reevaluating of the materials used. Existing-stores sales were up eight percent due to a boost in customer traffic because of their promotions and wider lineup.

The company was able to attract new customers by opening more stores in city centers where it’s accessible to people who do not have cars, according to Akio. The other business that is doing well is office furniture.

“we cannot be optimistic,” said Chairman Notori in reference to the inhibited consumer spending. Notori Holdings will not be changing their full-year earnings guidance.