Safie Co., Ltd. (Shinagawa-ku, Tokyo; President & CEO: Ryuhei Sadoshima; hereinafter "Safie"), the No. 1 provider in cloud recording service market share (*1), is pleased to announce that its cloud camera "Safie One" has been introduced for the "mother-child store" operations (hereinafter "satellite operations") promoted by Nishitetsu Store Co., Ltd. (Headquarters: Fukuoka City, Fukuoka Prefecture; President: Toshiyuki Kubota; hereinafter "Nishitetsu Store").

Nishitetsu Store, led by its newly established "Center & Satellite System Department" in April 2025, officially launched "satellite operations" in August of the same year. This system involves supplying products from a large "mother store" to smaller "child stores" to improve sales floor efficiency. This operation has been initially implemented at Leganet Minami-Nagazumi (mother store) and Leganet Marche Nagazumi (child store). "Safie One" cameras have been installed in the deli and produce sections of the child store, allowing the mother store to grasp the actual sales floor conditions of the child store through video. This enables appropriate product supply based on the sales floor situation, which cannot be fully captured by sales data alone, such as POS data.

[Summary of this Release]

Nishitetsu Store, which operates supermarkets in Fukuoka Prefecture, has fully launched "mother-child store operations (satellite operations)" where products are supplied from a mother store to enhance the operational efficiency of child stores. Cloud cameras "Safie One" are utilized at the pilot stores, Leganet Minami-Nagazumi (mother store) and Leganet Marche Nagazumi (child store).

Department chiefs (deli and produce) at the mother store can now check the actual sales floor conditions of the child store via cloud camera footage, which goes beyond what POS and other sales data can provide, enabling them to determine appropriate product supply.

While reducing the total labor hours for both stores through the dual role of store manager and consolidation of child store operations at the mother store, the total sales for both stores increased year-on-year, and the deli category also saw an increase compared to the previous year (*2). This has simultaneously achieved cost reduction and an increase in sales and profits.

As a new retail store operation model that integrates the survival of small-scale stores as regional living infrastructure with productivity improvement, the company is considering expansion to other stores and application to mobile sales vehicles in the future.

Background and Challenges

Difficulty in managing "child stores" that are difficult to oversee from the mother store, and challenges in determining appropriate supply quantities based on data alone.

Amidst declining birthrates, an aging population, and labor shortages, small and medium-sized supermarkets in rural areas face a structural challenge where stores with small sales volumes and limited product selection lead to customer attrition, making their survival difficult. However, these stores serve as essential living infrastructure for local residents, creating a dilemma where simple closure would have a significant impact on the community.

Nishitetsu Store, as a solution to this challenge, focused on "mother-child store operations (satellite operations)" where a "mother store" with large sales volume and strong operational capabilities supplies products to nearby small "child stores." While designing the initiative with reference to examples from other companies, the biggest hurdle was the operational challenge of "difficulty in overseeing the sales floor situation of child stores, both from the mother store and headquarters." Mother store staff had to physically visit the child stores to understand their situation, leading to inefficiencies in terms of personnel, time, and cost. On the other hand, sales data such as POS data only reveals "what was sold and for how much," but not "the current state of the sales floor" or "whether there was potential for more sales." The inability to determine the appropriate product supply volume for child stores based on data alone was the core issue that determined the success or failure of satellite operations.

With the policy of "seriously tackling this issue by establishing a department rather than a trial project," the company established the Center & Satellite System Department in April 2025. As an initiative to solve these challenges and focus on sales growth, satellite operations commenced in August 2025, at an exceptional speed of approximately four months from conception.

(Left) Mother store "Leganet Minami-Nagazumi" / (Right) Child store "Leganet Marche Nagazumi"

Initiative

Visualizing the child store's sales floor from the mother store through "video."

Leganet Minami-Nagazumi (mother store) and Leganet Marche Nagazumi (child store), where this initiative was implemented, are approximately 800 meters apart, about a 2-minute drive. One "Safie One" camera was installed in the deli and produce sections of the child store, Leganet Marche Nagazumi.

In satellite operations, the deli manufacturing (bento boxes, rice balls, etc.) and produce cutting operations, which were previously conducted within the child store, have been stopped and replaced by product supply from the mother store. Department chiefs (deli and produce) at the mother store, in addition to referring to POS data, use cloud camera footage to grasp the actual conditions of the child store's sales floor, which cannot be fully captured by sales data alone. This allows them to determine supply volume and timing while realistically understanding product movement and sales floor vitality.

<Main Usage Scenarios in Sales Floor Operations>

- Deli sales floor: The deli chief checks the sales floor situation after peak hours to determine subsequent supply quantities. - Produce sales floor: The sales floor is checked before and during the evening peak to optimize replenishment timing for cut vegetables, etc.

Information obtainable only through video (vitality, atmosphere) such as "Could this product have sold more if it had been replenished at the right time?" has become accessible.

Furthermore, department managers like Kamachi check the sales floor situation at necessary times, such as during seasonal changes or weekly meetings, to promote satellite operations and support the on-site staff.

<Key Factors in Selecting "Safie One">

Nishitetsu Store compared multiple camera services during the selection process. The following points were decisive in choosing Safie:

- Cost: Reasonableness of introduction and operational costs when deploying multiple units. - Mobility: Convenience of checking the sales floor not only from a PC but also easily from a smartphone while on the move. - Installation: Ease of installation by on-site staff, even for precision equipment, and immediate start of communication. - Video Quality: Speed of video data startup, image quality that remains clear even when zoomed in, and smooth playback. Safie One installed in the produce sales floor.

Main Effects of Introduction

Achieved "cost reduction" and "sales increase" simultaneously, significantly improving profitability.

Starting with the understanding of sales floor conditions through video utilization, operations have evolved to be in line with actual sales, such as increasing the number of delivery shipments per day by one for the produce category.

In satellite operations, significant labor savings have been achieved in both personnel and operations by consolidating the store manager role for both mother and child stores (dual role) and by stopping deli manufacturing and produce cutting operations at the child store and consolidating them at the mother store. As a result, the total labor hours for the two stores have been reduced (*2).

Normally, measures such as operating with fewer staff and labor-saving initiatives carry the risk of decreasing sales. However, Nishitetsu Store has succeeded in achieving substantial sales and gross profit growth without increasing personnel or relying on price increases, by utilizing the cloud camera "Safie One" to grasp the actual conditions of the child store's sales floor through video, which cannot be fully captured by sales data alone, and thereby ensuring appropriate product supply.

Total sales for both stores: Increased year-on-year (*2)

Sales for the deli category: Increased year-on-year (*2)

Total labor hours for both stores: Reduced year-on-year (*2)

Especially for deli products, which are crucial for customer satisfaction in supermarkets as they cater to the "ready-to-eat" demand supporting customers' dining tables, the stable supply from the mother store has enriched the product lineup and reduced stockouts (lost opportunities). This is believed to have increased customer convenience and contributed to sales growth.

By simultaneously achieving "improvement of cost structure" and "increase in sales and profits," the overall profitability of the two stores has greatly improved. This has provided a sense of accomplishment for a new retail store operation model that integrates "the survival of small-scale stores," "productivity improvement," and "enhanced customer convenience."

<"Next Requests" from the Field are Also Emerging>

Store managers of other mother-child stores (Iigura and Beppu stores) operating under satellite operations have also made additional requests, such as "Please install cameras in the meat and fish sales floors." This indicates a shift from initial negative perceptions to a momentum where the on-site staff themselves are eager to expand camera utilization, not just at Leganet Minami-Nagazumi and Leganet Marche Nagazumi.

Establishment of New Operations

Change Management Addressing On-site Concerns

Kamachi recalls that the most important aspect to address when launching satellite operations was the on-site staff's reception. As this was a new operational method they had no prior experience with, there were initially many voices of concern from mother store staff regarding how to proceed with operations and how to organize the roles and responsibilities between the mother and child stores.

In response, the company has taken the time to carefully share the concept of supporting the commercial sphere and customers' lives by having the mother and child stores work together as a team. Through these consistent efforts, they have been steadily building an integrated operational culture between mother and child stores. It is said that the awareness of the on-site staff is steadily changing through these accumulated efforts.

Future Outlook

Considering expansion of mother-child store operations to other stores, and further application to mobile sales vehicles.

Based on the results at Leganet Minami-Nagazumi and Leganet Marche Nagazumi, Nishitetsu Store plans to gradually expand its mother-child store operations to other stores. By horizontally deploying the operational model of grasping the actual conditions of child store sales floors, which are difficult to oversee from the mother store, through cloud cameras and ensuring appropriate product supply, the company aims to simultaneously promote the survival of small-scale stores rooted in the community and the productivity improvement of the entire store group.

In addition, the company is considering application to areas outside of stores, such as mobile sales vehicles. Nishitetsu Store currently operates about 10 mobile sales vehicles as regional living infrastructure in areas such as mountainous regions in the Kitakyushu area and areas with a high proportion of elderly residents. The company is envisioning the use of cloud cameras for safety and quality control purposes, such as ensuring that the flip-up doors (wings) on the sides of the vehicles are not left open, managing the doors of refrigerated cases, and monitoring adherence to work procedures. Mobile sales are the ultimate form of "labor-saving stores," and the role of cameras is considered to be significant.

Comments from Nishitetsu Store

Takahiko Kamachi, Executive Officer, Head of Center & Satellite System Department, Nishitetsu Store Co., Ltd.

Regarding this initiative, we have launched satellite operations with a sense of speed, from the establishment of the department in April 2025 to the start of actual operations in August of the same year, based on the philosophy of "valuing speed over perfection." The cloud camera "Safie One" has been a great support in connecting our vision to actual operations due to its "ease of handling," such as its simple installation and quick startup, which suits our pace of work. The video footage has provided insights such as "could we have sold more?" which are not visible from POS data alone, significantly improving the quality of on-site decision-making. Moving forward, we aim to expand its use to benefit customer satisfaction and on-site safety and quality, with an eye toward horizontal expansion to other stores and application to mobile sales vehicles.

Comments from Safie Co., Ltd.

Fumiki Kurihara, Manager, Kyushu Sales Office, Safie Co., Ltd.

Nishitetsu Store's "satellite operations" are an advanced example of tackling the structural challenges faced by regional retailers with practical action. Cloud cameras have evolved from mere security tools to "infrastructure that supports on-site decision-making." We will continue to support the initiatives of those who play a role in regional infrastructure in the Kyushu area from an on-site perspective and strive to contribute to the sustainable growth of the retail industry.

(*1) Based on the "Network Camera Cloud Recording Service Market Research (2025)" by Techno-System Research Co., Ltd., market share based on the number of cameras registered per engine (54.3%).

(*2) Researched by Nishitetsu Store. Results from August 2025 (start of operations) to December 2025.

* Safie, based on the "Safie Data Charter," is sequentially carrying out requests to installation providers and operational improvements based on the necessity of notifications by camera usage purpose.

* Information acquired is viewed only by the data acquirer, and personal data is not provided to third parties except as required by law. Furthermore, it is not used for purposes such as identifying or tracking individuals.

What is the Cloud Recording Service "Safie"?

Safie is the No. 1 service in cloud recording service market share, allowing you to view footage anytime, anywhere, simply by connecting a camera to the internet.

With the vision of "Creating the future from video," we are creating a future where video can be utilized for people's decision-making and aiming for a video platform that can be easily used by anyone from corporations to individuals.

We advocate the business concept of "DXing the 'site' of all industries with video data" and are proactively promoting DX in various fields such as retail, civil engineering and construction, manufacturing, and healthcare.

Safie complies with the following guidelines regarding data governance and also engages in awareness activities in cooperation with stakeholders. We also review our guidelines and operational standards with advice from external experts on matters such as privacy protection.

- Initiatives on Data Governance: https://safie.co.jp/csr/advisoryboard/

- Data Charter (Issued April 1, 2022): https://bucket.safie.link/pdf/csr/advisoryboard/safie_data_charter_JP.pdf

Creating the future from video

[Company Profile of Safie Co., Ltd.]

Location: Sumitomo Fudosan Osaki Garden Tower, 1-1-1 Nishi-Shinagawa, Shinagawa-ku, Tokyo

Established: October 2014

Representative: Ryuhei Sadoshima

Business Activities: Development and operation of the cloud recording video platform "Safie" and provision of related services.

Service Site URL: https://safie.jp/

Corporate Site URL: https://safie.co.jp/

Recruitment Page: https://safie.co.jp/teams

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