As a Community Center

Social Impact Assessment

About Social Return on Investment (SROI)
MUJI Naoetsu’s Mobile Sales Bus
Library Established in MUJI Yoshizuya Kani Store

In addition to selling merchandise, MUJI stores also serve as community centers. As such, they engage in activities to address local challenges and revitalize regions in collaboration with government agencies, local businesses and non-profit organizations. Lifestyles and social issues vary by region. We aim to create a positive impact in each community by understanding local values and issues and working together with residents through trial and error. In FY2024/8, we carried out a social impact assessment using the social return on investment (SROI) methodology, focusing on two localization activities, to visualize our impact on society.¹ As a result of assessing these two activities, we were able to confirm that the activities are significant because they have substantial social benefits as well as economic benefits in each region.²

About Social Return on Investment (SROI)

SROI is one method of measuring the impact of investments in social businesses and activities, and is determined by dividing the impact on society (benefit) by the input (investment cost). Ordinarily, return on investment, obtained by dividing profit by the amount invested, is used in evaluating the economic activity of companies, but for SROI, in addition to the economic aspects, the social impact (benefit) is measured by assigning monetary value to the social and environmental impacts and adding up the economic profit. An SROI greater than 1.0 signifies a positive investment impact.

Social return on investment (SROI) = Impact on society (benefit) ÷ Investment cost

In conducting this assessment, we obtained the opinions of Hitoshi Matsushima, a professor at the University of Tokyo Graduate School of Economics, and Masayuki Yagasaki, a senior assistant professor at the Tohoku University Graduate School of Economics and Management. Dr. Matsushima and Dr. Yagasaki are members of the Chair of Social Common Capital.³ The SROI assessment results were reviewed by Toru Matsumoto, a professor at the Institute of Environmental Science and Technology at the University of Kitakyushu.

1. Results of an assessment based on answers to a questionnaire carried out over a short period of time

2. Assessment methods that assign monetary value have limitations and may not fully capture all social benefits.

3. The Chair of Social Common Capital was established at the University of Tokyo Graduate School of Economics in 2022 through a donation by Ryohin Keikaku. For more details https://www.scc.e.u-tokyo.ac.jp (Japanese only)

MUJI Naoetsu’s Mobile Sales Bus

MUJI Naoetsu has operated a mobile sales bus that goes to mountainous areas since August 2020. The bus visits people who have difficulty shopping on their own, such as elderly individuals or people who live far away from stores, and the drivers chat with them and deliver the items they need for daily life to help them live with peace of mind. It carries about 300 different kinds of MUJI products, such as sweets, retort pouch foods and cosmetics. Mobile sales destinations are determined in consultation with local governments and other entities, and the service operates in a total of 18 locations (as of the end of August 2024), mostly in Joetsu City, where MUJI Naoetsu is located.

Social Impact Assessment Result: SROI of 2.5

The assessment evaluated activities for one year in FY2024/8, the fourth year since the mobile sales bus began operating in Naoetsu. The operating cost was approximately JPY 11 million (investment cost), while the total outcome of the activity was approximately JPY 27 million (benefit). This results in an SROI of 2.5. From the questionnaire results, the benefit to users of this service was about JPY 1,700 per person, with many customers saying they feel happy that they can shop in their own neighborhood without spending time and transportation expenses to go to the MUJI store and the city. They were also glad to have more opportunities to enjoy shopping in an area where there are few places to shop. In terms of the economic benefit, profit from sales was higher than in the previous year because of an increase in permanent consignment sales locations such as public facilities as a result of the mobile sales bus. We have received requests from customers on matters such as expanding the product lineup, and will make improvements accordingly.

Mobile Sales Bus Impact Map (FY2024/8)

4. Operation of the mobile sales bus led to increased profit for consignment sales partners compared with FY2023/8.

5. Since exhaust gas is emitted from the mobile sales bus during operation, it is subtracted from the benefits as an environmental impact.

6. Determined in part by referring to responses in a questionnaire survey of users of the mobile sales bus (conducted September to October 2024, with 207 respondents) regarding the advantages of using the mobile sales service and the amount they would be willing to pay for it. The benefits listed here represent some of the most frequently mentioned responses, including both multiple-choice and open-ended comments.

Library Established in MUJI Yoshizuya Kani Store

MUJI Yoshizuya Kani, which opened in Gifu Prefecture in November 2023, aims to support childcare and the development of the next generation. In addition, in partnership with Kani City under a comprehensive collaboration agreement, it helps pass on the city’s natural, historical and cultural resources. As part of these efforts, we established the KANIMILIVE Library, a branch of the Kani City Library, inside the store, and are conducting various initiatives to support the lives of local residents. We conducted an assessment of the following initiatives.⁷

KANIMILIVE Library

The idea to establish KANIMILIVE Library—a branch of the Kani City Library—inside the MUJI store was born from a desire to make it easier for local residents to access books and to spark their interest in reading. Based on opinions received from local residents, books were selected with a focus on ones that children can enjoy alone or with their parents. We also made this a space where parents and children can enjoy books while talking with each other. In addition, we applied creative approaches to integrate the spatial design and bookshelf layout with the store, and developed distinctive methods of arranging books to encourage people to discover titles they might not usually pick up. The library was designed by Ryohin Keikaku’s Space Design Division and is operated year-round by Kani City. However, the Himawari-go mobile library, beloved by the people of Kani for more than 30 years, ended its service in September 2023 due to aging and deterioration. Now it is displayed in the Yoshizuya Kani center court, and serves a new role as a symbol of the community’s revitalization. The books inside the bus are available for use when it is open on Saturdays and Sundays.

Open MUJI

Various events are held in the Open MUJI event space inside the store for the purpose of revitalizing the community. The objective is for participants to broaden their range of activities by gaining new knowledge and ideas, and by meeting people. Currently, a variety of events take place, including informational sessions hosted by Kani City, local civic groups and universities on topics that are relevant to daily life such as health and child-rearing, as well as workshops on music and arts & crafts.

Health Checks

The health check corner inside the store is equipped with about 10 different kinds of instruments to measure things such as blood pressure and stress levels. They are available for anyone to use free of charge.

Social Impact Assessment Result: SROI of 1.4

The activities of KANIMILIVE Library were evaluated over the one year after its opening. The operating cost was approximately JPY 140 million (investment cost), while the total outcome of the activity was approximately JPY 200 million (benefit). This results in an SROI of 1.4. In the questionnaire results, 87% of customers said they visit the store to shop at MUJI, but over 60% of respondents said that they borrow or look at books when they stop in. In addition, 38% answered that their opportunities to read or be exposed to books have increased because of the KANIMILIVE Library. The most cited reason for that was “Because it is easy to drop in while I’m shopping” at 46%, followed by “Because it has books that I haven’t come across before” at 40%. Of those who responded to the questionnaire (13% of total participants) from events such as Open MUJI, 55% said they enjoyed the event together with their children. Establishing the KANIMILIVE Library through collaboration between Ryohin Keikaku and Kani City helped keep costs lower than the cost of building an ordinary library, and also led to increased sales for the Yoshizuya Kani shopping facility. As areas for improvement, respondents expressed a desire for more kinds of books, and for more events.

MUJI Yoshizuya Kani and KANIMILIVE Library Impact Map (From November 2023 to October 2024)

7. The assessment target was limited to localization activities including the KANIMILIVE Library and MUJI-led events. Activities such as the sales of MUJI products and the regional trading company activities of KANIMILIVE are outside the scope of the assessment.

8. Of the investment costs, facility construction and equipment costs were divided by the number of years of depreciation (50 years and 8 years, respectively) and recorded as the costs for one year.

9. Health check equipment became available for use starting in January 2024, and therefore the number of users for the 12-month period was estimated based on the results for January to August 2024.

10. The combined total of the amount saved in comparison with the cost of building an ordinary library, the increase in operating profit of Yoshizuya Kani, and the impact of publicity from being featured in newspapers and PR magazines.

11. The responses of people (KANIMILIVE users) who had visited the KANIMILIVE Library/MUJI Yoshizuya Kani at least twice (based on a survey conducted in November 2024) were used for reference.

12. The responses of people who had visited the KANIMILIVE Library/MUJI Yoshizuya Kani at least twice and had attended an Open MUJI event in the aforementioned questionnaire survey were used for reference.

13. The advantages of using the KANIMILIVE Library and the amount users would be willing to spend, obtained from the results of the aforementioned questionnaire survey, were used for reference. The benefits listed here represent some of the most frequently mentioned responses, including both multiple-choice and open-ended comments.