Watts

Basic Information

Stock Code
2735
Industry
Retail Industry
Category Detail
Specialty Stores & Drugstores
Prefecture
Osaka Prefecture
Establishment Year
February 1995
Listing Year
May 2002
Official Website
https://www.watts-jp.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
CVS Bay, CanDo, Festaria, Seria, Fill C

Overview

Watts is a leading retail company founded in 1995 with its headquarters in Osaka City, Osaka Prefecture. It operates a variety of 100-yen shop brands nationwide, including 'Watts,' 'Meets,' and 'Silk,' differentiating itself through small-scale store operations.

Current Situation

Watts recorded consolidated net sales of 61.257 billion yen, operating income of 1.247 billion yen, and net income of 904 million yen for the fiscal year ending August 2024, maintaining stable financial growth. Its primary business is operating 100-yen shops under the Watts brand as well as Meets, Silk, and other store formats, deployed nationwide through subsidiaries segmented by region. In recent years, it has strengthened its business foundation through acquisitions and mergers, and also expanded into discount shops and interior goods businesses. It has focused on logistics efficiency by outsourcing to Maruwa Unyu Kikan, achieving logistics optimization. Toward sustainable growth, it contributes to local communities, restructures business formats, and has transitioned to listing on the Standard Market. In the 2020s, it is advancing new growth strategies through unifying store brands, developing new formats, and overseas expansion into China, Peru, and beyond.

Trivia

Interesting Facts

  • Operates a nationwide chain of approximately 1,000 100 yen shops.
  • Manages operations from Kanto to Kyushu through multiple region-specific subsidiaries.
  • Advancing brand unification to strengthen brand power.
  • Has local subsidiaries in China and Peru overseas.
  • Implements efficient operations by outsourcing logistics.
  • Expanding discount shop business.
  • Actively engaged in importing and selling household sundries.
  • Corporate slogan: 'Always a smile with Watts.'
  • Stable support system from related parent company affiliates.
  • Each brand offers distinct product assortments tailored to customer segments.

Hidden Connections

  • Acquired subsidiaries to obtain 100 Yen Consulate and Flets brands, expanding store network.
  • Built strong ties with logistics specialist Maruwa Unyu Kikan through outsourcing.
  • Strengthened local adaptability through joint ventures with overseas partners.
  • Competes with peers like Seria and CanDo while promoting market growth.
  • Deploys Denmark's Sostrene Grene brand domestically for differentiation.
  • Expanded sales channels and product lines through acquisition of Otondo F Retail.
  • Realizes region-specific operations by establishing subsidiaries per area.
  • Of approximately 3,146 employees, many are part-time or contract workers.

Future Outlook

Growth Drivers

  • Enhanced brand recognition and customer acquisition through unification
  • Market diversification via new format development
  • Cost reduction and competitiveness improvement through logistics efficiency
  • Accelerated overseas expansion centered on China and Peru
  • Strengthened product development responsive to customer needs
  • Sales channel diversification through integration of digital and physical stores
  • Expansion of eco-friendly products and sustainability initiatives
  • Deepened ties with local communities via region-focused management
  • Talent development and creation of appealing work environments
  • Strengthened product lineup amid expanding household goods market
  • Market share expansion through multi-store 100 yen shop rollout
  • Maximized operational efficiency through integrated subsidiary management

Strategic Goals

  • Build Japan's strongest nationwide 100 yen shop chain through brand unification
  • Achieve over 20% overseas sales ratio and deepen overseas market penetration
  • Further logistics efficiency and environmental load reduction
  • Advance multi-store expansion in discount shop business
  • Secure over 50% sales ratio of sustainable products
  • Active contributions to regional economies and communities with sustainable management
  • Build hybrid sales system of digital and physical stores
  • Enhance new customer acquisition and existing customer loyalty
  • Improve employee satisfaction and promote diverse work styles
  • Strengthen development of differentiated products in household goods sector

Business Segments

100 Yen Shop Operation Support

Overview
Segment providing management support and product supply to 100 yen shop operators.
Competitiveness
Expertise in directly operated small-scale stores
Customers
  • Directly operated and franchise store operators
  • Local governments
  • Commercial facility managers
Products
  • Store operation know-how provision
  • Logistics support
  • Product procurement and supply

Interior & Sundries Wholesale

Overview
Provides diverse sundries wholesale centered on imported goods to meet wide-ranging client needs.
Competitiveness
Stable procurement of overseas brands
Customers
  • Retailers
  • Interior shops
  • Department stores
  • Online stores
Products
  • Imported sundries
  • Fashion sundries
  • Household items

Logistics Services

Overview
Provides logistics outsourcing to support efficient product distribution.
Competitiveness
Long track record in logistics operations
Customers
  • Related subsidiaries
  • External retailers
Products
  • Delivery agency
  • Inventory management
  • Logistics optimization solutions

Overseas Business

Overview
Conducts sundries sales and wholesale through local subsidiaries in Zhejiang Province, China, and Peru.
Competitiveness
Local subsidiary network for market responsiveness
Customers
  • Overseas wholesalers
  • Local sales agents
Products
  • Sundries sales in China and Peru
  • Local product procurement

Competitive Advantage

Strengths

  • Strong regional ties through small-scale directly operated stores
  • Diverse 100 yen shop brand deployment
  • Cost optimization via efficient logistics outsourcing
  • Global expansion leveraging overseas local subsidiaries
  • Specialized operations through multiple subsidiaries
  • Diversified operations in discount shops and sundries stores
  • Stable financial base and credibility as a listed company
  • Business expansion and synergy creation through acquisitions
  • Rapid response via region-specific management optimization
  • Combination of diverse sales channels

Competitive Advantages

  • Rapid store operations and ongoing customer contact through directly operated small stores
  • Covers broad customer segments using multiple brands
  • Achieves low-cost operations through regional closeness and efficient logistics outsourcing
  • Balances imported sundries with local needs via overseas bases
  • Advances brand unification and management efficiency through integrated store reorganization
  • Enhances competitiveness by integrating acquired businesses with existing strengths
  • Multi-faceted response to customer needs with rich product lineup
  • Solid financial position supports continuous investment
  • Diversifies consumer touchpoints with flexible sales channels
  • Strategic store deployment tailored to regional differences in domestic market

Threats

  • Profit pressure from intensified price competition with major players
  • Decline in store traffic due to changes in consumer purchasing behavior
  • Rising costs from raw material prices and logistics expenses
  • Market uncertainty following COVID-19
  • Local economic and political risks in overseas operations
  • Excessive competition and customer saturation in domestic retail
  • Costs for packaging and waste management due to stricter environmental regulations
  • Labor shortages and rising personnel costs from declining working-age population
  • Pressure on physical stores from growing online sales
  • Cost risks for imported sundries due to exchange rate fluctuations

Innovations

2023: Development of New 100 Yen Shop Formats

Overview
Advancing unification of existing store brands and introduction of new formats.
Impact
Enhanced brand power and improved store operation efficiency

2022: Full Outsourcing of Logistics Operations

Overview
Outsourced logistics to Maruwa Unyu Kikan to pursue cost reduction and efficiency.
Impact
Logistics cost reduction and improved service quality

2021: Acquisition of Otondo F Retail Shares

Overview
Expanded business domain through acquisition of 100 yen shop operations.
Impact
Diversified sales channels and expanded market share

2020: Strengthening Overseas Subsidiary Establishment

Overview
Expanded sales using local subsidiaries in China and Peru markets.
Impact
Increased overseas sales and strengthened adaptation to local markets

Sustainability

  • Promoting reduction of waste plastic in store operations
  • Introducing procurement standards for low-environmental-impact products
  • Supporting local community environmental conservation activities
  • Advancing work-style reforms and work-life balance for employees
  • Promoting use of sustainable packaging materials