Hokuyu Lucky

Basic Information

Stock Code
2747
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Hokkaido
Establishment Year
May 1982
Listing Year
October 2002
Official Website
https://www.hokuyu-lucky.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Halows, Daikokuten Bussan, Seihyo, United Super Markets Holdings, Maruyoshi, Daiichi, Life Corporation, Max Valu Tokai, Axial Retailing, Yaoko, Arcs, Baro Holdings, Belc

Overview

Hokuyu Lucky is a mid-sized supermarket chain established in 1982, primarily operating in Hokkaido, focusing on fresh produce and clothing in a community-oriented retail business.

Current Situation

In the fiscal year ended February 2022, Hokuyu Lucky recorded standalone sales of approximately 38.9 billion yen and operating profit of about 350 million yen, maintaining a stable business base in Hokkaido's regional market. Centered in Sapporo City, it operates multiple standard supermarket brands and small stores across Hokkaido, attracting a wide customer base through daily necessities and clothing. In recent years, it has focused on introducing electronic money payments across all stores and reconstructing and renovating small to medium-sized stores to improve operational efficiency and customer convenience. Additionally, in 2024, it acquired a supermarket in Shiraoicho through a business transfer agreement, strengthening new store expansion. In Hokkaido's intensely competitive market, its flexible store operations leveraging regional closeness and multi-brand deployment are key features. It is cautiously advancing sustainability initiatives, prioritizing contributions to the local economy and customer satisfaction to achieve sustainable growth.

Trivia

Interesting Facts

  • Hokuyu Lucky is a rare supermarket company operating multiple small brands in Hokkaido.
  • It introduced multiple electronic money options early, focusing on customer convenience.
  • Its multi-faceted store deployment rooted locally serves as a model for community-oriented management.
  • 'Lucky Card' is independent for clothing halls, operating a separate points system from food stores.
  • Recently advancing scrap-and-build strategy by rebuilding old stores into smaller formats.

Hidden Connections

  • Major shareholder Kiryu Kogyo Co., Ltd. is related to the founding family, maintaining strong ties with regional key companies.
  • Hokuyo Bank and Hokkaido Bank are shareholders, featuring strong ties with regional financial institutions.
  • Member of CGC Group, leveraging collaborations in procurement and logistics.
  • Competes with other Hokkaido supermarkets while securing position as mid-sized food supermarket based in southern Hokkaido.

Future Outlook

Growth Drivers

  • Increasing demand for lifestyle-close stores responding to Hokkaido aging
  • Customer attraction via enhanced electronic payments and digital marketing
  • Multi-region expansion and efficient operations through small store strategy
  • Differentiated product development using regional specialties
  • Brand value enhancement through sustainable management
  • Expansion of online sales channels
  • Cost reduction effects from logistics efficiency
  • Customer loyalty building through deepened community services

Strategic Goals

  • Double store network across Hokkaido
  • Achieve 50 billion yen sales and over 5% operating margin
  • Complete cashless and digitalization across all stores
  • Reduce CO2 emissions by 30% for lower environmental impact
  • Enhance regional contributions through stronger community ties
  • Establish over 50% sustainable product ratio
  • Diversification via new lifestyle-related services
  • Secure talented personnel through improved employee satisfaction
  • Achieve top-tier domestic ESG ratings
  • Embed data-driven management culture

Business Segments

Regional Commercial Facility Operation Support

Overview
Provides operation support and specialized services for regional commercial facilities.
Competitiveness
Hokkaido-local market knowledge and network
Customers
  • Local Shopping Arcades
  • Shopping Center Operators
  • Local Financial Institutions
Products
  • Store Development Consulting
  • Layout Design
  • Promotion Support Tools

Product Procurement and Logistics Services

Overview
Provides efficient procurement and logistics for small stores.
Competitiveness
Hokkaido-wide logistics network and procurement efficiency
Customers
  • Local Small Stores
  • Local Supermarkets
  • Clothing Specialty Stores
Products
  • Product Sourcing Agency
  • Logistics Delivery Service
  • Inventory Management Support

Bulk Food Supply

Overview
Supplies safe, fresh ingredients for business use to regional customers.
Competitiveness
Supply capability for fresh goods via extensive network
Customers
  • Restaurants
  • Hotels
  • School Lunch Companies
  • Wedding and Funeral Facilities
Products
  • Fresh Ingredients
  • Prepared Foods
  • Deli and Bento Products

Clothing Wholesale

Overview
Wholesales various clothing to meet regional needs.
Competitiveness
Localized clothing variety
Customers
  • Small Clothing Retailers
  • Event Shops
  • School-Related Groups
Products
  • Casual Clothing
  • Uniforms
  • Workwear

Points Card System Operation

Overview
Customer retention through proprietary points card system.
Competitiveness
Community-focused customer data utilization
Customers
  • Own Stores
  • Local Affiliated Stores
  • Consumers
Products
  • Points Card with Electronic Money Function
  • POS-Linked System
  • Customer Analytics Tools

Environmental and Energy-Saving Support

Overview
Consulting for environmentally friendly store operations.
Competitiveness
Sustainable proposals through regional collaboration
Customers
  • Store Owners
  • Franchise Affiliates
Products
  • Energy-Efficient Equipment
  • Waste Reduction Programs
  • Environmental Certification Support

Events and Promotion Planning

Overview
Promotion business aimed at regional revitalization.
Competitiveness
Planning and operation with resident participation
Customers
  • Local Residents
  • Local Groups
  • Customer Communities
Products
  • Seasonal Events
  • Regional Promotions
  • Campaign Planning

Digital Marketing Support

Overview
Customer attraction services using digital technology.
Competitiveness
Customization to regional characteristics
Customers
  • Own Stores
  • Local SMEs
Products
  • SNS Ad Management
  • Online Sales Support
  • Customer Management Systems

Food Processing OEM Business

Overview
Food manufacturing consignment in collaboration with local companies.
Competitiveness
Technological expertise using Hokkaido ingredients
Customers
  • Local Food Manufacturers
  • Restaurant Chains
  • Souvenir Shops
Products
  • Deli Production
  • Frozen Food Production
  • Processed Food Packaging

Distribution System Development Support

Overview
Provides distribution efficiency systems for retail.
Competitiveness
Design tailored to local logistics conditions
Customers
  • Local Retail Chains
  • Logistics Providers
  • IT Vendors
Products
  • Inventory Management System
  • Delivery Planning Software
  • Store POS Integration

Competitive Advantage

Strengths

  • Community-oriented management rooted in Hokkaido
  • Multi-brand diverse store deployment
  • Product lineup strong in fresh foods
  • Convenience from electronic money payments across all stores
  • Collaboration with local companies in capital and shareholder structure
  • Initiatives for sustainable store operations
  • Diversified B2B business expansion
  • Robust local product development
  • Product range accommodating wide customer segments
  • Stable business base and financial position
  • Strong relationships with local community
  • Store renewals and scrap-and-build strategy

Competitive Advantages

  • Region-specific store deployment responding to local needs
  • Brand strategy optimization by region
  • Abundant selection centered on Hokkaido specialties
  • Early electronic money introduction improving customer convenience
  • Strengthened shareholder ties with major local banks and trading firms
  • Established low-cost operation model for small stores
  • Extensive store operation know-how and staff training
  • Synergies from bundled lifestyle-related goods
  • Proactive environmental management enhancing corporate image
  • Enhanced product development through SME collaborations
  • Ongoing community-focused marketing
  • Sales promotion via diverse digital measures

Threats

  • Intense competition in Hokkaido market
  • Risk of declining local purchasing power and population decrease
  • Rising food prices and raw material costs
  • Intensified market share competition from new entrants
  • Potential consumption slump due to economic uncertainty
  • Management burden from labor shortages and rising wages
  • Declining foot traffic from delayed digitalization response
  • Logistics and procurement risks from natural disasters or climate change
  • Increased compliance costs from stricter regulations
  • Pressure on physical stores from expanding e-commerce
  • Risk of failing to meet diversifying customer needs
  • Changes in shareholder composition dependent on local capital

Innovations

2024: Store Expansion via Shiraoicho Supermarket Business Transfer

Overview
Acquired Kumagai Supermarket business from Kumagaya Shoten Co., Ltd., and opened new Lucky Mart Shirao store.
Impact
Expanded store network in Hokkaido and strengthened regional customer base.

2023: Completed Electronic Money Payments Across All Stores

Overview
Expanded support for nanaco, WAON, iD, QUICPay, and transportation IC cards to all 34 stores.
Impact
Achieved improved customer convenience and payment efficiency.

2020: Expanded Small Store Model 'Lucky Mart'

Overview
Strengthened small-market compatible 'Lucky Mart' stores through rebuilds and new openings.
Impact
Expanded customer touchpoints and established low-cost operations.

2022: Renewed Points Card 'Lucky CoGCa Card'

Overview
Switched to points card with electronic money function, enhancing membership services.
Impact
Contributed to customer retention and sales promotion.

2021: Efficiency Measures via Store Renewals

Overview
Optimized sales floor space and improved operations through renovations at Hoshizoi Ekimae and Yamano stores.
Impact
Reduced store operating costs and improved customer satisfaction.

Sustainability

  • Reduced cash usage through electronic money payments
  • Gradual introduction of energy-saving store equipment and operational improvements
  • CO2 reduction in logistics via promotion of local product purchases
  • Deployment of waste reduction programs and awareness activities
  • Participation in local cleanup activities and social contribution events