Trial Holdings

Basic Information

Stock Code
141A
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Fukuoka Prefecture
Establishment Year
September 2015
Listing Year
March 2024
Official Website
https://trial-holdings.inc/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Timee, Aeon Kyushu, Sun A, Kobe Bussan, Aeon Hokkaido, Pan Pacific HD, Aeon, Izumi, Heiwado, Fuji, Tenmaya Store

Overview

Trial Holdings is a Kyushu-based retail group founded in 1974, with strengths in discount store operations and retail tech utilizing AI technology.

Current Situation

Trial Holdings recorded consolidated sales of approximately 717.9 billion yen and operating profit of approximately 13.9 billion yen for the fiscal year ended June 2023. It operates 351 stores nationwide, including supercenters and discount stores, centered mainly in Fukuoka Prefecture. It actively introduces IT technologies such as AI-equipped smart shopping carts and store surveillance cameras, achieving labor reduction and efficient operations. It plans to acquire shares in Seiyu in 2025, aiming to expand its store network and diversify its business. As part of its social responsibility, it focuses on proper food labeling and engages in community contributions and environmental considerations. Moving forward, it will promote digitalization and rationalization, pursuing a growth strategy centered on community-based stores and the expansion of next-generation smart stores.

Trivia

Interesting Facts

  • Japan's largest operator of self-checkout shopping carts.
  • Business started in 1974 in Fukuoka Prefecture as a recycle shop.
  • Technologically advanced with over 700 AI surveillance cameras in stores.
  • Promotes payment revolution with proprietary prepaid cards and apps.
  • Listed on the Tokyo Stock Exchange Growth Market in 2023.
  • Scheduled to participate in major retail industry restructuring via Seiyu acquisition in 2025.
  • Actively conducts proof-of-concept experiments for next-generation technology in in-house test stores.
  • Operates 6 stores in South Korea, aiming for Asian expansion.
  • Rare retailer engaging in diversified operations including hot spring lodging.
  • Has received guidance from the Ministry of Agriculture, Forestry and Fisheries in the past for improper labeling.

Hidden Connections

  • Trial Holdings to transform into a key player in major retail through complete acquisition of Seiyu shares.
  • AI-equipped smart cameras co-developed with Panasonic optimize store operations.
  • Proprietary smartphone payment app 'SU-PAY' collaborates with multiple financial institutions including Mizuho Bank and MUFG.
  • Hot spring resort business contributes to local revitalization through cooperation with local governments.
  • Subsidiary Retail AI Co. provides AI technology to the retail industry, with potential for technology exports inside and outside the group.
  • Acquired former Cowboy stores in Hokkaido to expand community focus.
  • Stores transferred from Sato Chang balance regional brand inheritance with modernization.
  • Trial's 'Skip Cart' attracts industry attention as the world's largest in operational units.

Future Outlook

Growth Drivers

  • Store operation labor savings and efficiency improvements via AI and IoT
  • Store network expansion through Seiyu acquisition
  • Price competitiveness via strengthened private brand products
  • Community-based store rollout and local market development
  • Promotion of full cashless payment adoption
  • Expansion of retail AI services to external sales
  • Diversified management through hot spring and resort business
  • Enhanced corporate value through sustainability efforts
  • Improved customer convenience via increased 24-hour stores
  • Smart shopping cart operation expansion and technological innovation
  • Internationalization and overseas store expansion
  • Cost reductions through optimized logistics and delivery networks

Strategic Goals

  • Achieve over 500 stores domestically and internationally
  • Lead in retail AI technology supporting sustainable retailing
  • Build large retail group with sales exceeding 1 trillion yen
  • Achieve over 70% penetration of proprietary payment services in key regions
  • Advance ESG issue resolution in collaboration with local communities
  • Complete energy conservation and decarbonization across all stores
  • Maximize customer convenience through integrated diverse sales channels
  • Fully automate checkout operations with self-checkout in all stores
  • Business expansion in overseas markets (mainly Asia)
  • Regional branding and revenue growth in hot spring resort business

Business Segments

IT Solutions for Retailers

Overview
Provides self-developed retail AI technology and IT systems to the retail industry to support business efficiency
Competitiveness
Industry-leading AI labor-saving technology
Customers
  • Trial store group
  • Other retailers
  • Franchise stores
Products
  • Sales management system
  • Customer analytics tool
  • Inventory management system
  • AI store operation cameras
  • Smart checkout cart system

Hot Spring Facility Management Contracts

Overview
Implements operations and management of hot spring resort facilities to contribute to local tourism promotion
Competitiveness
Community-focused operations through collaboration with local areas
Customers
  • Local governments
  • Tourism operators
Products
  • Hot spring lodging operations
  • Restaurant operations
  • Regional revitalization planning

Financial and Payment Services

Overview
Builds proprietary cashless payment infrastructure to enhance customer convenience and store efficiency
Competitiveness
High-density service integration with stores
Customers
  • Group stores
  • Individual customers
  • Corporate customers
Products
  • Prepaid cards
  • Smartphone payment apps
  • Store payment terminals

Competitive Advantage

Strengths

  • Nationwide store network centered in Kyushu
  • Labor-saving operations utilizing AI and IT technology
  • Ability to deploy diverse store formats
  • Low-priced products via private brands
  • Abundant community-focused know-how
  • Advancement of growth strategies domestically and internationally
  • Group management capabilities as a holding company
  • Strong logistics and procurement systems
  • Early introduction of smart stores
  • Cashless payment system development
  • Competitiveness as a large food supermarket
  • Community-focused hot spring resort business
  • Business efficiency through IT across all stores
  • World's largest deployment of self-checkout carts
  • Operation of diverse sales channels

Competitive Advantages

  • World's largest number of self-checkout shopping carts in operation
  • Advanced customer flow and shelf management via AI cameras
  • Market needs response through diverse store brands
  • Next-generation smart stores promoting distribution information revolution
  • Advanced operational labor savings from IT and physical store integration
  • Strong regional brand power as a Fukuoka-based retailer
  • Acquisition of Seiyu provides foundation for large-scale business expansion
  • Customer retention via proprietary prepaid cards and payment apps
  • Lower store operating costs compared to major competitors
  • Strong purchasing power from extensive store network
  • Synergies in IT and logistics within the group
  • Service deployment in collaboration with local communities
  • Customer base expansion leveraging diverse sales formats
  • Management vision incorporating sustainable regional development
  • Revenue stability through diversification

Threats

  • Intense price competition within the retail industry
  • Risk of improper food labeling
  • Personal information and customer privacy issues
  • Regional regulations and land acquisition difficulties for new stores
  • Rising labor costs due to shortage of low-wage workers
  • Decline in store visits from e-commerce expansion
  • Changes in consumer spending due to economic fluctuations
  • Logistics network disruptions from natural disasters
  • Competitor adoption of smart store technology
  • Uncertain external factors such as new infectious diseases
  • Loss of customer trust from electronic payment failures
  • Impacts from economic policies and tax system changes

Innovations

2022: Expansion of Smart Shopping Cart Deployment

Overview
Self-checkout shopping cart 'Skip Cart' in operation at 241 stores nationwide, approximately 20,000 units.
Impact
Significantly shortens checkout wait times and improves staff efficiency.

2020: Establishment of 'Remote Work Town Musubu Miyawaka'

Overview
Joint establishment with Miyawaka City, Fukuoka Prefecture, of a retail IT development base utilizing AI technology.
Impact
Promotes regional revitalization and advanced store operations through IT development.

2023: Announcement of Seiyu Share Acquisition

Overview
Plans major reinforcement of business foundation through acquisition of shares in major domestic retailer Seiyu.
Impact
Enhances sales power through nationwide store network expansion.

2021: Launch of Proprietary Payment App 'SU-PAY'

Overview
Introduced bank account-linked smartphone payment service to group stores.
Impact
Promotes cashless adoption and improves customer convenience.

2024: Acceleration of Smart Store Rollout

Overview
Deploys AI cameras and digital signage across entire stores to achieve advanced customer management.
Impact
Contributes to sales floor efficiency and improved customer service quality.

Sustainability

  • Enhanced compliance with Food Labeling Law for safety and reassurance
  • Promotion of regional revitalization and job creation
  • Advancement of energy conservation and reduction of store environmental impact
  • Promotion of priority use of local produce
  • Introduction of environmentally friendly packaging materials