CanDo

Basic Information

Stock Code
2698
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Tokyo
Establishment Year
December 1993
Listing Year
June 2001
Official Website
https://www.cando-web.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
ABC-Mart, Watts, Seria

Overview

CanDo is a retailer that has established the third position in the 100-yen shop chain industry since its founding in 1993, offering a diverse range of daily necessities and processed foods.

Current Situation

CanDo recorded consolidated sales of approximately 80.3 billion yen in the fiscal year ending February 2024 and operates 1,311 stores domestically and internationally. Although net profit was in the red for 2024, the company is advancing efficient store operations to secure operating profit. Since its founding, it has maintained industry competitiveness through a store expansion strategy combining directly operated stores and franchises. As a consolidated subsidiary of the Aeon Group, it leverages a stable financial base and nationwide sales channels. It is also strengthening product offerings across diverse price ranges to meet consumer needs. Since 2020, it has reintroduced mid-price range products from 200 to 500 yen, focusing on revenue diversification. Supply chain efficiency and POS system implementation have strengthened internal management. Moving forward, it plans sales expansion with a view to improving its position in the specialty store and drugstore industry and increasing store numbers.

Trivia

Interesting Facts

  • CanDo is the third-largest 100-yen shop chain in the industry.
  • Over 1,300 stores, with a wide network in the industry.
  • Aeon became the largest shareholder and consolidated subsidiary in 2022.
  • Early establishment of franchise business accelerated nationwide expansion.
  • Proprietary mascot character 'Happydog WanDo' is popular.
  • Strengthening profitability through diverse price range products.
  • Actively pursuing M&A to expand stores in the Kansai region.
  • Recently completed POS system rollout to all stores.
  • Expanding markets overseas via franchises.
  • After founder's sudden death, young management team took the helm and advanced.
  • Outlets in some home centers via FC collaboration with DCM Group.
  • Temporarily suspended 300-yen and 500-yen items in 2013 before resuming.
  • Emphasizes not only urban areas but also small local markets.
  • Operates both directly operated and franchise stores.
  • Differentiates through region-specific store rollout and product assortments.

Hidden Connections

  • As part of Aeon Group, strong ties with intra-group chains.
  • FC contracts with major home center DCM contribute to differentiation from competitors.
  • Built unique position in retail by leveraging franchises over many years.
  • After founder Hiroshi Kido's death, next-generation young leadership took over.
  • The only 100-yen shop company to join Aeon Group.
  • Related companies include peer Seria and rival Watts, holding influence in the industry.
  • Hybrid model of franchise and direct stores forms the foundation for expansion.
  • Actively utilizes mascot character 'Happydog WanDo' in marketing.

Future Outlook

Growth Drivers

  • Sales channel expansion through Aeon Group collaboration
  • Further strengthening of franchise rollout
  • Customer base expansion via product price diversification
  • Operational efficiency via logistics and IT investments
  • Aggressive entry into Asian overseas markets
  • Data-driven management via POS systems
  • Sales growth through seasonal items and new products
  • Improved customer satisfaction via eco-products
  • Strengthened product development based on customer needs
  • Enhanced competitiveness through regional close-knit operations
  • Service quality improvement via human resource development
  • New sales channels via e-commerce utilization

Strategic Goals

  • Achieve over 1,500 domestic stores
  • Stabilize profit into the black
  • Introduce energy-saving measures in all stores to reduce environmental impact
  • Achieve over 50% plastic reduction rate
  • Maximize sales contributions from Aeon Group
  • Realize over 20% sales ratio from overseas markets
  • Strengthen customer analysis based on POS data
  • Develop and strengthen sales of diverse price range products
  • Improve recognition as a regional close-knit brand
  • Increase repeat rate through improved store design and customer experience

Business Segments

Franchise Business

Overview
Business aimed at expanding a regional close-knit retail network through FC stores.
Competitiveness
Powerful support system leveraging headquarters expertise
Customers
  • Individual business owners
  • Small businesses
  • Local commercial facility operators
Products
  • Store opening support
  • Product supply
  • Marketing support

Wholesale Operations

Overview
Product supply and logistics support for various retail stores.
Competitiveness
Cost advantages from bulk purchasing
Customers
  • Franchise stores
  • Home centers
  • In-supermarket specialty stores
Products
  • General 100-yen products
  • Seasonal goods
  • Sundries

Private Brand Product Planning

Overview
Promoting differentiation strategies through proprietary brand development.
Competitiveness
Product proposal capabilities reflecting market needs
Customers
  • Retail stores
  • Specialty store chains
Products
  • PB sundries
  • PB household goods

Store Operations & Management Support

Overview
Support services for store efficiency and service quality improvement.
Competitiveness
Dual approach of IT implementation and on-site guidance
Customers
  • Directly operated stores
  • FC stores
Products
  • POS management system
  • Sales data analysis
  • Staff training programs

Overseas Business Expansion

Overview
Expanding the 100-yen shop brand primarily in Asia.
Competitiveness
Low-risk expansion via overseas FC contracts
Customers
  • Franchise partners
  • Local sourcing partners
Products
  • Lifestyle sundries for Asian markets
  • Store opening support

Business-Use Product Supply

Overview
Providing promotional and commercial materials for corporations.
Competitiveness
Rapid logistics and product diversity
Customers
  • Corporate customers
  • Wholesale to retailers
Products
  • Event goods
  • Promotional items

Logistics Services

Overview
Supporting product supply with efficient logistics systems.
Competitiveness
Rapid delivery via nationwide network
Customers
  • Directly operated stores
  • FC stores
Products
  • Delivery management
  • Inventory optimization

Marketing Research

Overview
Conducting research for market need understanding and strategy formulation.
Competitiveness
Utilization of extensive real-store data
Customers
  • Product planning division
  • Store expansion planning division
Products
  • Consumer trend surveys
  • Sales analysis

IT System Development & Maintenance

Overview
Providing IT services to support store operation efficiency.
Competitiveness
Industry-specific solution development
Customers
  • Store operations management
  • Product management division
Products
  • POS system
  • Sales analysis software

Human Resource Development & Training Services

Overview
Educational programs aimed at improving store service quality.
Competitiveness
Practical programs with instructor dispatch
Customers
  • Franchise partners
  • Directly operated store staff
Products
  • Customer service training
  • Operations training programs

Product Planning Consulting

Overview
Providing planning support to maximize product value.
Competitiveness
Proposal strength based on store site knowledge
Customers
  • Franchise partners
  • Retail companies
Products
  • Product rollout strategy
  • Sales promotion planning

Store Design & Renovation Support

Overview
Design and renovation support to enhance store appeal.
Competitiveness
Extensive track record suited to 100-yen stores
Customers
  • Franchise partners
  • Directly operated stores
Products
  • Store design
  • Interior plans

Competitive Advantage

Strengths

  • Third in industry brand recognition
  • Wide assortment of daily goods and food
  • Stable funding from Aeon Group
  • Hybrid directly operated and FC operations
  • Efficient store rollout and logistics network
  • Sales management using POS systems
  • Products across diverse price ranges
  • Regional close-knit store network
  • Rapidly growing domestic store count
  • Market expansion via overseas operations
  • Utilization of proprietary mascot character
  • Risk diversification through FC contracts
  • Rapid product turnover
  • Maintained cost competitiveness
  • Product development responding to customer needs

Competitive Advantages

  • Utilization of Aeon Group's extensive sales channels
  • Rapid expansion via efficient franchise rollout
  • More diverse price ranges than competitors
  • Real-time sales data analysis via POS systems
  • Wide network of 1,311 stores nationwide and strong brand
  • Comprehensive consumer needs coverage with diverse lineup
  • Risk diversification through balance of direct and franchise stores
  • Strong support system for franchise partners
  • Store operation efficiency via latest IT technologies
  • Financial support and stable supply from Aeon Group
  • New market acquisition through overseas expansion
  • Brand penetration of proprietary character 'Happydog WanDo'
  • Diversified product price ranges aligned with trends
  • Expanded sales territory via strengthened franchises
  • Effective marketing and customer data utilization

Threats

  • Market share battles with major competitors
  • Declining sales from shifts in consumer thriftiness
  • Profit pressure from rising raw material prices
  • Market shrinkage risks from population decline and aging
  • Intensifying domestic retail competition
  • Cultural and regulatory barriers in overseas markets
  • Risk of franchise partner business failures
  • Impact of economic fluctuations on consumer sentiment
  • Expanding competition from e-commerce platforms
  • Rising logistics costs
  • Store operation challenges from labor shortages
  • Decreased store footfall from novel infectious diseases, etc.

Innovations

2022: Strengthened Financial Base via Aeon Group Integration

Overview
Completed Aeon's tender offer, becoming a consolidated subsidiary.
Impact
Achieved stable management base and expanded sales channels.

2020: Reintroduction of Mid-Price Products (200-500 Yen)

Overview
Expanded product price ranges in response to diversifying customer needs.
Impact
Broadened product lineup, contributing to sales diversification.

2021: Strengthened FC Contracts and Store Network Expansion

Overview
Implemented strengthened contracts with DCM Group and major FCs.
Impact
Promoted market share growth and store count increase.

2023: Expanded Introduction of POS and Automatic Ordering Systems

Overview
Efficient inventory management using sales data from all stores.
Impact
Reduced operating costs and stabilized product supply.

2024: Expansion of Overseas Franchise Business

Overview
Expanded franchises in Thailand, Mongolia, and other Asian regions.
Impact
Diversified revenue base through overseas market development.

Sustainability

  • Promoting plastic reduction in stores
  • Thorough waste recycling
  • Promoting energy-saving store operations
  • Expanding adoption of sustainable packaging
  • Strengthening environmental activities with local communities
  • Implementing environmental education programs for employees
  • Annual issuance of sustainability reports
  • Promoting sustainable procurement policies
  • Enhancing eco-friendly product lineup
  • Supporting participation in local volunteer activities
  • Logistics optimization to reduce environmental impact
  • Considering introduction of solar power systems