ABC-Mart

Basic Information

Stock Code
2670
Industry
Retail
Category Detail
Apparel & Fashion Retailers
Prefecture
Tokyo
Establishment Year
June 1985
Listing Year
October 2000
Official Website
https://www.abc-mart.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
J.FOOT, ZOZO, Saizeriya, Double-A, Chiyoda

Overview

ABC-Mart is a major footwear and apparel retailer founded in 1985, with numerous stores domestically and internationally, operating as a highly profitable SPA-type company.

Current Situation

ABC-Mart recorded consolidated sales of approximately 243.9 billion yen and operating profit of approximately 27.4 billion yen for the fiscal year ended February 2022, operating approximately 1,300 footwear specialty chain stores domestically and internationally. It exclusively sells major national brands and achieves high profit margins through the SPA model. It focuses on high-technology product planning, import sales, and domestic shoe manufacturing, while actively expanding overseas. In the past, it addressed issues such as Labor Standards Act violations and Premiums and Representations Act violations by strengthening its labor environment and compliance systems. It is also committed to sustainability, focusing on sustainable product planning and waste reduction. Looking ahead, it aims to sustain growth through overseas expansion and enhanced digital sales, promoting a strategy to advance its store network and environmental initiatives by 2030.

Trivia

Interesting Facts

  • One of Japan's largest footwear retailers with over 1,000 stores
  • Exclusive acquisition of national brand trademarks for differentiation
  • Achieves unusually high profit margins as an SPA footwear retailer
  • Covers multiple market segments through diverse store formats
  • Nationwide rollout of in-store broadcast program 'ABC Recommends'
  • Actively expanding apparel and accessories to broaden brand
  • Implemented labor environment improvements following 2015 illegal overtime indictment
  • Operates dedicated outlet stores in outlet malls
  • Strengthened technology and brands through acquisition of U.S. legacy shoe manufacturer
  • Achieved record growth surpassing 1,000 domestic stores in 2019
  • Expands customer touchpoints through diverse sales channels
  • Strengthening governance by appointing celebrities as outside directors
  • Expanding sales in Asia through collaboration with overseas entities
  • Renowned for customer service due to high employee training standards
  • Promoting customer-centric management via multifaceted marketing

Hidden Connections

  • Strengthened group ties by acquiring Oshman's under Seven & i Holdings
  • Supports U.S. traditional shoe brands technologically through some subsidiaries
  • Competes with major sports brands due to exclusive national brand trademarks
  • Headquartered in Shibuya, Tokyo, with extensive business networks in the fashion industry hub
  • Actively features local artists in in-store broadcasts, contributing to regional revitalization
  • Advances digital marketing through point services and SNS integration for shoppers
  • Outlet store expansion contributes to economic revitalization in regional markets
  • Strengthened internal audit systems and compliance framework following Labor Standards Act violations

Future Outlook

Growth Drivers

  • Expansion of retail store networks domestically and internationally
  • Strengthening of digital and e-commerce sales channels
  • Expansion of national brands and exclusive sales products
  • Introduction of sustainable, environmentally friendly products
  • Product development tailored to diverse customer needs
  • Aggressive expansion into overseas emerging markets
  • Marketing innovations to enhance brand value
  • Customer base expansion through diversified store formats
  • Service quality improvement via employee skill development
  • Improved social evaluation through sustainability initiatives
  • Ongoing enhancement of labor environment and compliance systems
  • Business diversification through acquisitions like Oshman's

Strategic Goals

  • Expand store count domestically and internationally by 15% from current levels
  • Increase e-commerce sales to 30% of total sales
  • Expand exclusive national brand sales rights
  • Reduce plastic packaging by 30% to lower environmental impact
  • Enhance work-life balance initiatives for employees
  • Expand community contributions and CSR activities
  • Increase revenue share from diversified businesses to 20%
  • Modernize digital marketing systems
  • Raise overseas sales ratio from current 25% to 40%
  • Establish sustainable shoe manufacturing and resource recycling model

Business Segments

Product Planning and Manufacturing

Overview
Engages in product development through proprietary planning and production management at partner factories.
Competitiveness
Strong product planning capabilities and manufacturing management system
Customers
  • Own Brands
  • Overseas Suppliers
  • Contract Manufacturers
Products
  • Planned Footwear Products
  • Planned Apparel Products
  • Planned Accessories Products

Import Sales

Overview
Exclusively imports and sells high-quality brand products from overseas.
Competitiveness
Exclusive brand rights and extensive distribution network
Customers
  • Domestic Stores
  • Overseas Stores
  • Wholesalers
Products
  • National Brand Footwear
  • Overseas Apparel
  • Imported Accessories

Store Operations

Overview
Operates product sales across diverse store formats domestically and internationally.
Competitiveness
Store format diversity and efficient sales strategies
Customers
  • Consumers
  • Distribution Partners
Products
  • Footwear Sales
  • Apparel Sales
  • Related Accessories Sales

Competitive Advantage

Strengths

  • Adoption of high-margin SPA model
  • Exclusive sales rights for national brands
  • Extensive store network domestically and internationally
  • Strong product planning capabilities
  • Diverse store formats
  • Stable logistics and procurement systems
  • Well-known brands
  • Strong financial base
  • Collaboration with overseas subsidiaries
  • Development of digital sales channels
  • Focus on employee training
  • Expansion into apparel and accessories
  • Sales diversification through multiple brands
  • Entry into outlet markets
  • Diversification via Oshman's acquisition

Competitive Advantages

  • Integrated management from product planning to sales for cost reduction
  • Differentiation through exclusive handling of national brands
  • Broad customer coverage via diverse store formats
  • High market coverage through robust domestic and international store network
  • Efficient inventory management via advanced IT utilization
  • Brand recognition and trust promoting customer repeat visits
  • Enhanced price competitiveness through outlet stores
  • Accelerated global expansion via overseas acquisitions
  • Flexible response to customer needs through wide product range
  • Improved service quality through strong employee bonds
  • Brand penetration via multifaceted marketing initiatives
  • Development and rollout of environmentally considerate products
  • Unique customer touchpoints via in-store broadcasts and SNS
  • Synergy expected from collaborations with capital partners
  • Building a loyal customer base

Threats

  • Shrinking consumer market due to aging population and declining birthrate in Japan
  • Intensified price competition from emerging rivals
  • Cost increases from strengthened labor regulations
  • Impact of exchange rate fluctuations on import costs
  • Uncertainty in sales environment due to changes in distribution channels
  • Fierce competition in e-commerce market
  • Political and economic risks in overseas operations
  • Store operation restrictions due to public health issues
  • Delays in responding to changing consumer preferences
  • Instability in material supply chains
  • Risk of brand image damage
  • Decline in trust due to regulatory non-compliance

Innovations

2023: Business Diversification through Oshman's Acquisition

Overview
Acquired Oshman's Japan from Seven & i Holdings to expand product lineup.
Impact
Expanded share in sports goods market and strengthened revenue base

2022: Strengthening Digital Sales Channels

Overview
Revamped e-commerce site and expanded SNS usage to grow online sales.
Impact
Increased online sales and expanded customer touchpoints

2021: Establishment of In-House Shoe Factory

Overview
Established Japan's first in-house shoe factory 'ABC SHOE FACTORY' in Shika Town, Ishikawa Prefecture.
Impact
Enhanced product planning and quality control

2020: Strengthened Partnerships with Proprietary and National Brands

Overview
Acquired trademark rights for brands like HAWKINS and Vans for exclusive sales.
Impact
Enhanced brand value and differentiation

Sustainability

  • Development and expanded sales of low-environmental-impact products
  • Implementation of plastic packaging reduction measures
  • Promotion of energy and resource conservation in stores
  • Creating a better workplace to improve employee satisfaction
  • Supporting environmental education in local communities