G-Foot

Basic Information

Stock Code
2686
Industry
Retail Industry
Category Detail
Apparel & Fashion Retailers
Prefecture
Tokyo
Establishment Year
October 1971
Listing Year
December 2000
Official Website
http://www.g-foot.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Asmo, Tabio, ABC-Mart, Festiaria, Double A, Chiyoda

Overview

G-Foot is a shoe specialty retailer established in 1971 and the third-largest company in the nationwide shoe chain industry under the Aeon Group umbrella.

Current Situation

G-Foot recorded consolidated sales of approximately 95 billion yen and net assets of approximately 23 billion yen for the fiscal year ending February 2019, operating approximately 383 stores nationwide. Its main business is the sale of shoes and sundries, deploying a diverse range of store brands such as 'ASBee' centered in the Chubu and Kanto regions, catering to a wide customer base from families to women's, men's, and sports shoes. Supported by the Aeon Group, it is expanding openings in shopping centers and GMS floor operations. In recent years, it has focused on online sales, franchise business, and private brand development. While competing with industry rivals such as ABC-Mart, it is strengthening its market position through integration of store brands and development of new formats. In the 2020s, it is advancing diversification with the launch of the sports shoe specialty format 'Athream' and specialty stores for the ladies' shoe brand 'heal me'. Moving forward, it aims to optimize its store network and strengthen digital sales in the medium term, leveraging the financial strength and network of the Aeon Group.

Trivia

Interesting Facts

  • Third-largest shoe sales chain in Japan
  • Established in 2009 through merger of Tsuruya Shoes and New Step
  • Exceptional distribution power as part of Aeon Group
  • Early entrant to Amazon online sales
  • Franchise agreement with SKECHERS Japan
  • Abundant lineup of region-specific store brands
  • Launched children's shoe specialty format 'Kish Plus+' in Fukuoka
  • Strategy of multi-format simultaneous openings in many stores
  • Long-term growth partner within Aeon Group
  • Significant influence as a company rooted in Chubu region
  • Deploys private brand 'heal me' for women's shoes
  • Expands customer base through fusion of online and physical stores
  • Successfully entered sports shoe market in earnest
  • Actively implements rebranding within the industry
  • Invests in Aeon Sports Goods Procurement Co., Ltd.

Hidden Connections

  • Deeply involved in Aeon Group's overall sales floor reforms through shoe department operations
  • Achieved exclusive franchise agreement with U.S.-based SKECHERS in Japan
  • Elevated industry status through brand integration of former Tsuruya Shoes and New Step
  • Expanding business by undertaking shoe department operations in many Aeon shopping centers
  • Successfully differentiated from competitors through private brand development and store rollout
  • Surprisingly, historic Tsuruya Shoes founded in 1931 with long history
  • Approximately 383 stores nationwide represent high market share as industry No. 3
  • Enhances customer convenience through linkage of online mail-order and in-store

Future Outlook

Growth Drivers

  • Synergies with Aeon Group's store network expansion
  • Integration of online and offline sales channels
  • Sports shoe market expansion and brand strengthening
  • Product differentiation through private brands
  • New format store rollout in urban and rural areas
  • Focus on growing children's shoe market
  • Deepening of digital marketing and customer analysis
  • Response to increasing demand for sustainable products
  • Franchise expansion and region-specific strategies
  • Operational efficiency through store brand integration
  • Swift response to changes in consumer lifestyles
  • Cost reduction through logistics and procurement efficiency

Strategic Goals

  • Complete full store brand integration to maximize customer recognition
  • Expand network to over 500 stores nationwide
  • Increase online sales ratio to around 40%
  • Raise private brand sales to over 30% of total
  • Increase eco-friendly material usage to over 50%
  • Expand market share in regions outside major urban areas
  • Strengthen franchise business to over 20% of total sales
  • Enhance customer experience through digital technology utilization
  • Improve employee diversity and work environment
  • Achieve sustainable growth with stable management base

Business Segments

Product Supply to Retail Stores

Overview
Stably delivers developed and procured shoes and related products to retail stores, supporting store expansion.
Competitiveness
Strong collaboration with Aeon Group for distribution network and product procurement capabilities
Customers
  • Shopping Center Operators
  • GMS Operators
  • Specialty Store Chains
  • Department Stores
Products
  • Men's Shoes Wholesale
  • Women's Shoes Wholesale
  • Children's Shoes Wholesale
  • Sports Shoes Wholesale
  • Lifestyle Sundries Wholesale

Brand Franchise Operations

Overview
Operates and manages popular brand franchise stores, contributing to sales growth.
Competitiveness
Abundant store operation know-how and region-specific sales system
Customers
  • SKECHERS Japan LLC
  • Footwear Brand Operators
Products
  • Store Operations Management
  • Product Sales Agency
  • Marketing Support

Private Brand Development

Overview
Differentiates and acquires customers with self-developed brands reflecting market needs.
Competitiveness
Customer-oriented product planning and utilization of existing distribution networks
Customers
  • Own Retail Stores
  • EC Sales Channels
Products
  • heal me (Women's Shoes)
  • Athream (Sports Goods)

GMS Shoe Department Operations Outsourcing

Overview
Undertakes shoe department operations in Aeon-affiliated stores to revitalize sales floors.
Competitiveness
Accumulated outsourcing experience and sales know-how
Customers
  • Aeon Retail Co., Ltd.
  • Daiei Operated Stores
Products
  • Shoe Floor Operations
  • Product Display
  • Sales Promotion

Product Procurement Function Company

Overview
Optimizes group-wide procurement through jointly invested Aeon Sports Goods Procurement Co., Ltd.
Competitiveness
Group procurement centralization and cost reduction capabilities
Customers
  • Aeon Group's Shoe Retail Companies
Products
  • Procurement of Domestic and International Shoe Products
  • Inventory Management

Competitive Advantage

Strengths

  • Extensive nationwide store network of approximately 383 stores
  • Aeon Group's capital and sales power
  • Diverse store brand deployment capabilities
  • Abundant shoe expertise and product development capabilities
  • Expansion power through franchise format
  • Active online sales expansion
  • Presence in sports shoe market
  • Region-specific customer service
  • Differentiation through private brands
  • Shoe department operations outsourcing experience
  • Stable funding capabilities
  • Efficiency through brand integration
  • Adaptability to diverse customer segments
  • Synergy with Aeon Group customer base
  • Accumulated specialty store operation know-how

Competitive Advantages

  • Store strategy leveraging Aeon's large shopping centers
  • Covers wide market segments with diverse brands
  • Powerful sports brand expansion via franchise agreement with SKECHERS Japan
  • Expanded sales channels through online shop and Amazon presence
  • Differentiation from competitors via specialized formats for children's and women's shoes
  • Stable revenue and increased customer touchpoints through GMS floor outsourcing
  • Group synergies from capital and business alliance with Aeon
  • Addresses diverse customer needs with region-optimized store brand strategies
  • High profitability through private brand planning and development
  • Improved customer satisfaction with wide price range and abundant assortment
  • Maintains stable No. 3 market position in the industry
  • Strengthens growth base with new store formats and rebranding strategies
  • Secures sales expansion opportunities through sports goods collaboration
  • Enhanced cost competitiveness via alliance with major distribution groups
  • Know-how in operating multiple formats tailored to customer lifestyles

Threats

  • Market share expansion by major competitors like ABC-Mart
  • Customer outflow risk from rise of online-only players
  • Declining profit margins due to intensifying low-price competition in shoe market
  • Risk of sharp rise in raw material prices
  • Weakened store traffic due to population decline
  • Delays in responding to diversifying consumer fashion preferences
  • Business impacts from external factors like COVID-19
  • Challenges in adjusting competing businesses within Aeon Group
  • Increased product manufacturing and distribution costs from stricter environmental regulations
  • Risk of rising import costs from exchange rate fluctuations
  • Reduced consumption due to deteriorating economic conditions
  • Risk of sales suspension or changes for specific brands

Innovations

2024: Headquarters Relocation and Digital Enhancement Push

Overview
Implemented DX promotion and management base strengthening along with headquarters relocation to Shinkawa, Chuo-ku, Tokyo.
Impact
Enables business efficiency and swift decision-making

2023: New Format 'ASBee Plus' Store Opening

Overview
Opened a new format store in Aeon Mall Toyokawa to target new customers.
Impact
Increased foot traffic through region-specific unique services

2020: Ladies' Shoe Brand 'heal me' Launch

Overview
Strengthened women's customer base through specialty store rollout and private brand development.
Impact
Contributes to sales growth and brand diversification

2020: Sports Shoe Specialty Format 'Athream' Launch

Overview
Positioned sports-specific shoes and goods rollout as a new business.
Impact
Enhanced presence in sports market

2022: Store Efficiency Improvement through Brand Integration

Overview
Integrated GreenBox brand into ASBee to improve operations and reduce costs.
Impact
Improved brand recognition and expense reduction

2021: Online Sales Channel Strengthening

Overview
Actively expanded shoe mail-order business using Amazon and own EC.
Impact
Increased non-face-to-face sales

Sustainability

  • Promotion of product recycling and waste reduction efforts
  • Energy-saving store operations to reduce environmental impact
  • Development of shoes using sustainable materials
  • Support for environmental education activities in local communities
  • Compliance with Aeon Group's environmental standards