Halows

Basic Information

Stock Code
2742
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Okayama Prefecture
Establishment Year
October 1958
Listing Year
September 2002
Official Website
https://www.halows.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Daikokuten Foods, United Super Markets Holdings, JM Holdings, Retail PA, Life Corporation, Max Valu Tokai, Axial Retailing, Izumi, Yaoko, Tenmaya S, Arcs, Baro Holdings, Belc

Overview

Halows is a leading food supermarket chain founded in 1958, primarily operating in the Chugoku and Shikoku regions, featuring 24-hour operations.

Current Situation

Halows achieved sales of approximately 210 billion yen in the fiscal year ending February 2025, maintaining 37 consecutive years of revenue growth and 12 consecutive years of profit growth with a solid financial base. It operates 107 stores mainly in the Chugoku, Shikoku, and Kinki regions, possessing strong brand power rooted in the community as Japan's first food supermarket to introduce 24-hour operations. Its business strategy focuses on expanding neighborhood shopping centers (NSC), introducing self-checkouts, and launching its proprietary electronic money 'Haloka' to enhance customer convenience. In logistics, it participates in the establishment of the Chugoku-Shikoku Logistics Research Group to improve logistics efficiency and is proactive in business streamlining. On environmental and social fronts, it has agreements with local governments for food loss reduction and promotes regional contributions. Moving forward, it plans expansion in Hyogo Prefecture and new store openings in Yamaguchi and Kochi Prefectures, continuing its growth strategy. Furthermore, its stores feature spacious floor areas with abundant product assortments and bright interiors, contributing to improved regional living convenience.

Trivia

Interesting Facts

  • First in Japan to introduce 24-hour food supermarket operations
  • 37 consecutive years of revenue growth, 12 consecutive years of profit growth
  • Mainly deploys spacious 600-tsubo stores with rich assortments
  • Introduced proprietary electronic money 'Haloka'
  • Early adopter of self-checkouts
  • Over 100 stores in Chugoku-Shikoku as a community-rooted company
  • Sponsors local soccer club
  • Deploys neighborhood shopping centers
  • Co-founded logistics research group with industry peers
  • Promotes local production local consumption and collaborates with regional agriculture
  • Signed food loss reduction agreements with local governments
  • Equipped with free flat parking lots
  • Focuses on local bank ATM installations
  • Store designs adapted to diverse regions
  • Standard logo uses uppercase 'H'

Hidden Connections

  • Unrelated to Autobacs Seven's Auto Halows, but shares regional market recognition
  • Strong community ties as sponsor of local soccer FC
  • Rare in industry to operate research organization coordinating with multiple competitors in logistics
  • Enhances regional customer loyalty through proprietary electronic money
  • Focuses on product development suited to local food culture, promoting local production local consumption
  • Store design features 5m ceilings, wide aisles considering customer flow
  • Installs commemorative monuments at former store sites to showcase company history to the community
  • Early promotion of self-checkouts strengthens response to labor shortages

Future Outlook

Growth Drivers

  • Stable demand in population-concentrated Chugoku-Shikoku areas
  • Continued support for 24-hour operation differentiation
  • Customer convenience via digitalization
  • Cost competitiveness via logistics efficiency
  • New region expansion and diversified management
  • Strengthened local products and deepened regional ties
  • Brand enhancement through food loss reduction
  • Operational efficiency via self-checkouts and electronic payments
  • Increased health-oriented products and promotions
  • Community bonding via regional sports and culture support

Strategic Goals

  • Establish stable operations for over 100 stores
  • Reduce costs by 20% through logistics efficiency
  • Strengthen community ties and achieve zero food loss
  • Improve customer satisfaction by 30% via digitalization
  • Capture over 10% share in new markets
  • Achieve energy savings across all stores for reduced environmental impact
  • Expand proprietary brand sales to 30% of total
  • Enhance employee satisfaction and achieve 90% retention
  • Expand regional event support and community activities
  • Reach over 50% customer electronic money usage

Business Segments

Business Food Supply

Overview
Supplies stable high-quality ingredients and related materials to restaurants and facilities.
Competitiveness
Rapid regional delivery and multi-item bulk supply
Customers
  • Restaurant Chains
  • Hospitals / Nursing Homes
  • School Lunches
  • Hotels / Inns
  • Delivery Companies
  • Bento Manufacturers
  • Food Service Industry
  • Franchise Supermarkets
  • Local Markets
  • Food Processors
Products
  • Fresh Vegetable Wholesale
  • Fresh Fish Wholesale
  • Meat Wholesale
  • Processed Food Supply
  • Ingredient Set Sales
  • Seasonings / Spices
  • Frozen Foods
  • Deli / Bento Materials
  • Business Beverages
  • Packaging Materials
  • Hygiene Supplies
  • Food Containers
  • Delivery Services
  • Logistics Support
  • Consulting

Logistics / Delivery Services

Overview
Supports stable supply through logistics services to stores and clients.
Competitiveness
Efficient logistics network and advanced IT utilization
Customers
  • Own Stores
  • Related Companies
  • Trading Wholesalers
  • Logistics Partners
  • External Retailers
  • E-commerce Operators
  • Food Manufacturers
  • Event Operators
  • Government Entities
  • Agricultural Producers
Products
  • Food Delivery
  • Temperature-Controlled Logistics
  • Inventory Management System
  • Shipping Planning
  • Logistics Partner Collaboration
  • Quality Control
  • Logistics Efficiency Consulting
  • Traceability Management
  • Returns Management
  • Adhesive Label Printing

IT Solutions Provision

Overview
Provides various IT services to improve store operation efficiency.
Competitiveness
Proprietary electronic money and self-checkout technology
Customers
  • Store Managers
  • Business Staff
  • Related Retail Companies
  • Advertising Agencies
  • Marketing Companies
  • Logistics Departments
  • POS System Vendors
Products
  • POS System
  • Electronic Money System
  • Customer Management System
  • Promotion Support Tools
  • Inventory Management Software
  • Data Analysis Services
  • Mobile App
  • Self-Checkout System

Advertising / Promotion

Overview
Deploys community-focused advertising and sales promotion activities.
Competitiveness
Rich regional information gathering and customer touchpoints
Customers
  • Own Stores
  • Retailers
  • Local Chambers of Commerce
  • Manufacturers
  • Event Organizers
Products
  • Flyer Production
  • Campaign Planning
  • Regional Event Support
  • Digital Marketing
  • Product Promotion

Store Equipment / Management Support

Overview
Provides various management services to support store operations.
Competitiveness
Efficient management through accumulated know-how
Customers
  • Own Stores
  • New Store Openers
  • Related Companies
Products
  • Store Layout Design
  • Equipment Maintenance
  • Store Cleaning Support
  • Safety Management System

Food Loss Reduction Support

Overview
Various measures and support services related to food loss reduction.
Competitiveness
Regional collaboration based on government agreements
Customers
  • Retail Stores
  • Consumer Groups
  • Local Governments
  • Restaurants
Products
  • Surplus Food Management System
  • Expiration Date Management
  • Donation Collaboration Support
  • Awareness Activities

Local Production Local Consumption Promotion

Overview
Planning and sales of local production local consumption products contributing to regional revitalization.
Competitiveness
Strong local producer network
Customers
  • Farmers
  • Local Specialty Producers
  • Consumers
Products
  • Local Product Sales
  • Product Development with Producers
  • Regional Fairs

Health Food Sales

Overview
Sales of specialized foods meeting health needs.
Competitiveness
Region-specific product lineup
Customers
  • General Consumers
  • Health-Conscious Segments
Products
  • Organic Foods
  • Supplements
  • Additive-Free Products

Electronic Money Operation / Management

Overview
Deploys prepaid settlement services for stores and customers.
Competitiveness
In-house development and community-focused operations
Customers
  • Store Customers
  • Franchise Operators
Products
  • Haloka Card
  • Settlement System
  • Points Program

Competitive Advantage

Strengths

  • Pioneer in 24-hour supermarket operations
  • Community-rooted store expansion
  • Abundant assortment and 600-tsubo stores
  • Efficient logistics network
  • Proprietary electronic money introduction
  • Early self-checkout adoption
  • Deep understanding of Chugoku-Shikoku market
  • Support from broad customer base
  • Stable financial foundation
  • Aggressive new store opening plans
  • Effective neighborhood SC
  • Promotion of local production local consumption
  • Food loss reduction agreements
  • Digitalization drive
  • Diversified service offerings

Competitive Advantages

  • Pioneer of 24-hour food supermarkets in Japan
  • Store network closely integrated with regional lifestyles
  • Spacious 600-tsubo store design enhancing customer satisfaction
  • Operational cost reductions via efficient logistics research group
  • Customer retention through proprietary electronic money 'Haloka'
  • Service speed-up and labor cost reduction via self-checkouts
  • Strong community ties and proactive food loss reduction
  • Diversified management supported by rich related companies
  • Brand penetration via local sports team sponsorship
  • Stable operations centered in Chugoku-Shikoku with Kinki expansion
  • Sales system leveraging diverse channels
  • High credibility from long-term revenue and profit growth
  • Customer needs alignment through region-specific product development
  • Competitive edge via flexible assortments per store
  • High customer satisfaction and trust from community focus

Threats

  • Intensifying competition with major national chains
  • Market shrinkage risk from population decline
  • Cost increases from stricter food loss regulations
  • Increased store operation burden from labor shortages
  • Rising logistics costs and need for delivery efficiency
  • Heightened competition from price-sensitive consumer shifts
  • Logistics and store damage risks from natural disasters
  • Uncertainty from novel infectious diseases and external factors
  • Customer loss from delayed digitalization
  • Impact from regional economic downturns
  • Competitors' strengthened digital transformation
  • Brand image decline from food safety issues

Innovations

2024: Launch of Chugoku-Shikoku Logistics Research Group

Overview
Established research group with Fuji, Izumi, etc., to solve logistics challenges.
Impact
Achieved significant logistics efficiency improvements and cost reductions.

2025: Official Release of Halows App

Overview
Launched smartphone app for coupon distribution and store information.
Impact
Enhanced customer engagement and digital touchpoints.

2025: Expansion of Self-Checkouts and Electronic Money

Overview
Accelerated self-checkout installations and electronic money usage initiatives in stores.
Impact
Improved customer convenience and reduced labor costs.

2023: Food Loss Reduction Agreement Signed

Overview
Signed food loss reduction agreement with Tokushima Prefecture.
Impact
Strengthened community ties and brand value.

2025: Accelerated New Store Opening Plans

Overview
Aggressively expanding stores in Kobe, Hyogo, Yamaguchi, etc.
Impact
Expanded market share and revenue base.

Sustainability

  • Government agreements for food loss reduction promotion
  • Logistics efficiency for reduced environmental impact
  • Community coexistence through strengthened regional ties
  • Energy-saving equipment in stores
  • Enhanced material management for recycling
  • Paperless via digitalization
  • Promotion of local product handling
  • Employee-friendly work environment initiatives
  • Active participation in regional communities
  • Expansion of health-oriented product lineup
  • Strengthened response to plastic reduction
  • Awareness campaigns for sustainable procurement