Message from the President

In 2025, the world continued to face a high degree of uncertainty. The growing impact of extreme weather has made energy and carbon reduction issues more pressing than ever, while geopolitical shifts, inflationary pressures, and changing consumption patterns have brought both new challenges and opportunities to the department store and retail industry. Amid this rapidly changing environment, SKM has remained committed to sound and prudent management, strengthening corporate resilience and driving growth through innovation as we steadily advance toward our long-term sustainability goals.

Looking back on the past year, we continued to move forward despite the challenges we faced. Following the incident at our Taichung Zhonggang Store early in the year, we immediately activated our emergency response mechanisms, prioritizing the safety of our customers and employees. We conducted a thorough review of our operating procedures and safety management systems and strengthened our risk management and emergency response capabilities. At the same time, we maintained close communication with our business partners, providing necessary operational support and flexible measures to help navigate the short-term impact together. This incident reminded us once again that operational safety and risk management are fundamental responsibilities that cannot be compromised. Going forward, we will continue to strengthen occupational safety management and employee training, carefully review areas for improvement, and remain open to guidance and suggestions from all parties. We will also enhance our management systems and processes to effectively prevent, mitigate, and address potential risks in our daily operations.

As the retail landscape continues to evolve rapidly, SKM is also accelerating its growth and transformation. In September 2025, our 16th store in Taiwan, Tainan Xiaobeimen, officially opened. With a fresh approach to social lifestyles and strong connections to the local community, the new store brings together shopping, art, and lifestyle experiences to create a new urban social destination. At the same time, SKM continues to move beyond the traditional department store model and explore innovative retail formats. In collaboration with ISETAN MEN'S at Shinjuku Isetan in Japan, SKM launched SKM MEN'S, focusing on men's lifestyles and consumer needs while introducing a new approach to menswear retail in Taiwan's department store sector. We also partnered with Hyundai Department Store of Korea to launch its first pop-up store in Taiwan, introducing 11 Korean fashion brands and giving customers immediate access to the latest international trends. Through these initiatives, we continue to strengthen our connection with global trends.

As of 2025, SKM had nearly 4.5 million members, reflecting the deep trust built through years of customer engagement. We continue to enhance our digital tools and service experience by expanding the skm points partner network, connecting our official website with skm online and skm eats to improve customer traffic across platforms, and strengthening our data capabilities to enhance both customer experience and operational efficiency. Our digital platforms, including skm app, skm online, and skm eats, are also continuously evolving to better integrate online and offline experiences. By further advancing our OMO omnichannel strategy, we are building a customer-centric ecosystem of lifestyle services. In addition, we officially introduced the Gold Card membership tier in 2025 to deepen engagement with high-value customers, allowing members to become not only customers but also important partners who grow together with SKM.

In our sustainability efforts, SKM continues to integrate sustainability into everyday consumer experiences. Our paper bag reduction initiative was expanded across Taiwan, and we also launched two sustainability themed exhibitions for the first time, the T368 Urban and Rural Products Exhibition and the Green Circular Living Exhibition. The exhibitions brought local small farmers and circular economy brands into our department stores, turning sustainability from an advocacy concept into everyday actions that customers can take and encouraging environmentally friendly practices through daily shopping.

Looking ahead, in 2026, Shin Kong Mitsukoshi will make its debut at Taipei Main Station, one of Taiwan’s most important transportation hubs and a key gateway through which international visitors experience the country. Guided by the vision of “Window to the World,” SKM will leverage its extensive department store management experience and digital innovation capabilities to connect transportation, commerce, culture, and lifestyle services. Focusing on four key development areas—innovative spatial and service design, diversified retail and merchandise planning, cross-disciplinary arts and cultural curation, and resilient safety management—SKM aims to create a new urban destination that combines an international perspective, distinctive Taiwanese local character, and everyday convenience. Through Taipei Main Station, SKM hopes to showcase Taiwan to the world and offer domestic and international visitors a deeper appreciation of the island’s diverse cultural heritage and way of life.

Moving forward, Shin Kong Mitsukoshi will continue to advance with humility and pragmatism, guided by its four sustainability strategies: Safety and Trust, Shared Happiness, Green Environment, and Arts and Culture. The company will deepen its efforts across these areas while pursuing continuous innovation and new possibilities. We believe that corporate value lies not only in the economic value created, but also in the lasting positive impact a company brings to society and the environment. SKM will continue to strengthen its local roots while connecting with the world, serving as a starting point for meaningful relationships between people, society, and nature. We aspire to create a Living Center that brings together warmth and value, working alongside our stakeholders to build a sustainable future and turning our sustainability commitments into action.

Together, Making Life Better.