Daikokuten Bussan

Basic Information

Stock Code: 2791
Industry: Retail
Category Detail: General Merchandise & Food Retailers
Prefecture: Okayama Prefecture
Establishment Year: June 1986
Listing Year: December 2003
Official Website: https://www.e-dkt.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Halows, Kobe Bussan, United Super Markets Holdings, JM Holdings, Moriroku, Life Corporation, Max Valu Tokai, Axial Retailing, Yaoko, Arcs, Baro Holdings, Belc

Overview

Daikokuten Bussan is a major discount store operator in the retail industry founded in 1986, which has achieved growth primarily in western Japan through its unique manufacturing-retail model and low-price strategy.

Current Situation

Daikokuten Bussan achieved consolidated sales of approximately 270 billion yen, operating profit of about 9.3 billion yen, and net profit of about 6.3 billion yen in the fiscal year ending May 2024. Centered in western Japan, it operates approximately 216 discount stores such as 'La・Muu' and 'DIO,' gaining strong support from local customers through 24-hour operations and low-price strategies. It promotes a manufacturing-retail model integrating in-house production, logistics, and store development, focusing on expanding private brand 'D-PRICE' products. In 2024, it announced a change in representative director president and a nationwide expansion strategy aiming for 1,000 stores by 2035. While engaging in sustainability efforts, it pursues business expansion through efficient operations via various logistics centers, in-house farms, and aquaculture facilities. In the future, it plans to strengthen entry into the Kanto and Chubu areas and expand its customer base through enhanced localized services.

Trivia

Interesting Facts

Continuous revenue and profit growth for 36 consecutive periods since founding.
Many stores operate 24 hours.
Integrated manufacturing-retail model with own farms, factories, and logistics.
Operates proprietary QR code payment system 'Daikokuten Pay'.
Private brand 'D-PRICE' highly rated locally.
Operates multiple formats including 'La・Muu' and 'DIO'.
Okayama-origin company with strong base in western Japan.
Launched first Kansai complex store 'La・Muu Kakogawa'.
Diverse subsidiaries form localized retail network.
Upgraded to Tokyo Stock Exchange First Section (now Prime) in 2012.
Officially promotes unique store image song.
Aggressive M&A for area expansion.
Operates in-house 100-yen fast food 'Pakupaku'.
Unique store operations with restocking during business hours.
Specializes in proprietary methods without diverse payment options.

Hidden Connections

Entered dairy product manufacturing through group subsidiary Hotei Dairy.
100-yen shop format operated via joint investment with Watts.
Acquired rival Halows as subsidiary for business expansion.
Unusual discount store aiming for nationwide expansion from regional origins.
Unique manufacturing-retail model attracts attention from other retailers.
Company name derived from the fortune god 'Daikokuten'.
Rare late-night unmanned register restocking in 24-hour stores.
Deploys regionally focused logistics DCs in Kansai and Chugoku regions.

Future Outlook

Growth Drivers

New store openings in Kanto and Chubu regions.
Further expansion of private brand products.
Strengthened efficient supply chain and logistics.
Customer retention through spread of proprietary payment system.
Format diversification responding to user needs.
Expanded use of digital marketing.
Brand value enhancement through sustainability initiatives.
Customer loyalty gains via strengthened localized services.
Productivity improvements and cost reductions via new technologies.
Area share expansion through M&A plans.
Expanded handling of health- and safety-oriented products.
Demand growth from increasing consumer frugality.

Strategic Goals

Achieve 1,000 stores nationwide by 2035.
Realize over 50% sales ratio from private brands.
80% adoption rate of renewable energy in stores and logistics bases.
Establish sustainable business model through community collaboration.
Strengthen customer experience improvements via digital technologies.

Business Segments

Food Wholesaling Business

Overview

Wholesaling business stably supplying diverse foods to retailers and food service businesses.

Competitiveness

Rapid delivery via extensive network and in-house logistics

Customers

Retail Stores
Restaurant Chains
Commercial Kitchens
Cafeterias and Employee Cafeterias
Accommodation Facilities

Products

Fresh Foods
Processed Foods
Frozen Foods
Seasonings
Beverages

Store Development and Construction Management

Overview

Supports site selection to construction management for in-house and group stores.

Competitiveness

Consistent management by dedicated in-house team

Customers

Group Stores
New Store Sites
Rental Real Estate Operators

Products

Store Site Acquisition
Construction and Renovation Management
Store Layout Design

Logistics Services

Overview

Operates logistics network efficiently delivering products from regional centers.

Competitiveness

Regionally focused logistics with multiple centers

Customers

Own Stores
Group Companies
Partner Retailers

Products

Product Delivery
Warehouse Management
Fulfillment

In-House Food Manufacturing

Overview

Provides high-quality, low-price products through in-house factory processing and manufacturing.

Competitiveness

Integrated management from production to sales

Customers

Own Brands
Group Stores

Products

Prepared Food Manufacturing
Frozen Food Manufacturing
PB Product Manufacturing

Private Brand Development

Overview

Achieves differentiation through planning and development of unique PB products.

Competitiveness

Stable procurement from own farms and aquaculture

Customers

Own Stores
Wholesale Clients

Products

D-PRICE Product Series
Low-Price Beverages
Processed Foods

Competitive Advantage

Strengths

Integrated manufacturing-retail business model
Stable supply from own farms and factories
Overwhelmingly low-price EDLP strategy
Convenience of 24-hour store operations
Solid store expansion centered in western Japan
In-house logistics centers and efficient delivery
Robust private brand lineup
Aggressive store network expansion plans
Thorough cost management capabilities
Localized customer service
Risk diversification through diverse formats
Strong management team and long-term vision
Securing large numbers of employees and part-time workers
Multi-brand subsidiary operations
Proprietary QR code payment system

Competitive Advantages

Control over raw material procurement through ownership of farms, aquaculture, and factories
Establishes superiority in customer convenience by combining low prices and 24-hour operations
Private brand 'D-PRICE' supports mass sales as a key differentiator
Thorough cost reduction by in-housing store development to operations
Builds extensive regional deployment and operations through subsidiary and group collaboration
Expansion strategy targeting Chubu and Kanto while based in western Japan
Improves payment efficiency and customer retention via proprietary QR code payment 'Daikokuten Pay'
Flexible response to market changes through diverse formats
Achieves rapid product delivery through in-house logistics and warehouse management

Threats

Intense price competition with major convenience stores and supermarkets
Risk of fluctuations in food raw material prices
Labor shortages complicating workforce securing
Impact on consumption from regional economic fluctuations
Decline in store visits due to novel infectious diseases and social risks
Rising logistics and delivery costs
Stricter regulations on food safety
Risk of customer loss from competitor store expansions
Risk of failing to keep up with technological innovations
Delays in adapting to diversifying electronic payment methods
Damage risks from earthquakes and natural disasters
Brand damage from food adulteration or quality issues

Innovations

2024: Completion and Relocation to New Head Office Building

Overview: Constructed new head office in Nishi-Shinmachi, Kurashiki City, achieving operational efficiency.
Impact: Strengthens organizational operations and foundation for expansion strategy.

2024: Expansion of Proprietary QR Code Payment System 'Daikokuten Pay'

Overview: Improves customer convenience and payment efficiency with proprietary system.
Impact: Increases cashless payment ratio, boosting sales.

2023: New Logistics DC to Strengthen Regional Logistics

Overview: Established and enhanced logistics centers in Kyoto, Okayama, and Hyogo.
Impact: Improved delivery efficiency, cost reductions, and freshness maintenance.

2022: Expansion of Private Brand Product Assortment

Overview: Aggressively developed and expanded new D-PRICE series products.
Impact: Expanded sales of low-price goods, improving customer satisfaction.

2021: Review and Efficiency Measures for Partial 24-Hour Store Operations

Overview: Optimized operating hours to reduce labor and utility costs.
Impact: Achieved both profitability improvement and service maintenance.

Sustainability

Strengthened sales promotion strategies to reduce food waste
Introduced low-environmental-impact technologies at own farms and aquaculture
Promoted use of renewable energy at logistics bases
Community collaboration for recycling promotion activities
Strict adherence to sustainable procurement standards
CO2 reduction through energy efficiency improvements
Work environment improvements for employee health and safety
Efficiency gains from proprietary payments beyond electronic money
Enhanced disaster support systems for local communities
Hosted customer-participatory environmental education events
Efforts to reduce plastic in packaging materials
Promotion of energy-saving measures in stores