Sanyodo Holdings

Basic Information

Stock Code: 3058
Industry: Retail Industry
Category Detail: Specialty Stores & Drugstores
Prefecture: Aichi Prefecture
Establishment Year: December 1978
Listing Year: November 2006
Official Website: https://ir.sanyodo.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Kanda Tsushinki, Village Vanguard Corporation, Primex, Maruzen CHI Holdings, Takigami Kogyo, Top Culture, Bungeishunju Group Holdings

Overview

Sanyodo Holdings is a bookstore chain founded in 1978 with its base in the Chubu region, operating composite stores offering books, stationery, DVDs, and more, and engaging in regionally rooted retail business.

Current Situation

Sanyodo Holdings recorded consolidated sales of approximately 20.9 billion yen and net assets of approximately 3.4 billion yen in the fiscal year ended March 2021. It operates multiple stores mainly in the Chubu and Tokai regions, with expansion into the Kinki and Kanto areas. Its core business is the sale and rental of books, stationery, DVDs, and game software, with diverse business formats depending on the store. It is also expanding the handling of used books, trading cards, and hobby-related products. Since 2014, it has entered into a business and capital alliance with GEO Holdings to promote joint procurement of rental items and co-located stores. Starting in 2024, it is accelerating the introduction of smart stores such as 24-hour unmanned operations and facial recognition entry. Under the holding company structure, it is enhancing operational efficiency of business subsidiaries and diversified business expansion, focusing on services closely tailored to local customers. Moving forward, it aims for medium- to long-term growth by strengthening digital services and expanding new businesses.

Trivia

Interesting Facts

Sanyodo Holdings is one of the largest bookstore chains in the Chubu region.
Operates a store network centered in Tokai and Kinki with a local focus.
Promotes business diversification through used book buyback/sales franchises.
Efficiently procures rental items via strong business-capital alliance with GEO Holdings.
Operates innovative stores like trading card specialty shops and 24-hour unmanned stores.
Hosts its own comic award 'Dela Comi!' annually.
Contributes to regional health promotion through sports club business.
Offers unique services like columns in collaboration with local manga artists and novelists.
Head office located on the 4th floor of Shinkai Bridge store in Mizuho-ku, Nagoya.
Sells insurance products in stores via subsidiaries.

Hidden Connections

Capital alliance with GEO allows shared customer bases through co-located stores.
Tohan is a major shareholder and primary book trading partner, strongly influencing distribution.
Collaborates with local educational institutions and tutoring centers for PC classroom operations.
Alliance with Actus in sports clubs is part of expanding health demand.
Used trading card business expands as Surugaya FC stores, leveraging brand power.
Stores located across multiple cities and towns in Aichi Prefecture, contributing to local economy.
24-hour stores are pioneering among bookstore chains, attracting industry attention.
Hosting 'Dela Comi!' comic award contributes to regional culture promotion and customer engagement.

Future Outlook

Growth Drivers

Customer convenience improvement and extended hours via smart store conversion
Growth in used books and trading card markets with specialized services
Rental item cost efficiency via GEO business alliance
Increased demand from regional health trends in sports club business
Online customer expansion through strengthened EC and digital services
Multi-faceted customer touchpoints via integrated education services
Increased repeat customers through continued local store expansion
Flexible new business development under holding company structure
Enhanced brand value through strengthened community collaborations
Revenue diversification via expanded insurance products and services

Strategic Goals

Complete smart unmanned operations across all stores
Maintain regional top share in rental items and used markets
Launch nationwide expansion of sports club business
Double current EC sales ratio
Achieve over 50,000 annual education service customers
Realize specific environmental burden reduction measures
Increase franchise stores by 30%
Roll out CSR activities company-wide in collaboration with communities
Maintain customer satisfaction above 80%
Enhance operational efficiency and customer analysis through DX promotion

Business Segments

Bookstore Chain Store Support

Overview

Provides new and used book handling expertise and management support to bookstores outside the Chubu region.

Competitiveness

Stable growth through used book sales franchises

Customers

Local Bookstore Chains
Independent Booksellers
Franchise Stores
Textbook Sales Companies
Library Suppliers

Products

Book Procurement and Sales
Used Book Distribution Support
Store Management Consulting
Sales Promotion Tools
Store Digitalization Support

Rental Item Joint Procurement

Overview

Promotes joint procurement of rental products and cost efficiency through alliance with GEO.

Competitiveness

Procurement cost reductions and rapid supply system via partnership

Customers

GEO Holdings
Retail Store Rental Departments
DVD/CD Rental Companies
Video Software Wholesalers
Event Companies

Products

Music DVD Rentals
Movie Rental Software
Game Software Rentals
Distribution Agency Procurement
Joint Purchasing Plans

In-Store Insurance Sales Services

Overview

Conducts insurance product sales and customer needs response using store counters.

Competitiveness

Sales network leveraging locally rooted store expansion

Customers

Individual Customers
Small Businesses
Families
Seniors
New Customer Acquisition Companies

Products

Casualty Insurance Products
Life Insurance Products
Medical Insurance
Auto Insurance
Travel Insurance

Sports Club Business

Overview

Expanding low-price fitness business through Actus Will_G franchises.

Competitiveness

Stable usage promotion via local focus and low-price operations

Customers

Local Residents
Fitness Enthusiasts
Seniors
Health-conscious Groups
Corporate Welfare

Products

Low-price Sports Gyms
Individual Training Guidance
Group Lessons
Studio Programs
Health Events

Education Services Provision

Overview

Operates PC classrooms and tutoring centers in stores to meet local education needs.

Competitiveness

Integration of store operations and locally rooted education services

Customers

Elementary and Junior High Students
Senior Learners
Qualification Seekers
Schools
Local Residents

Products

PC Classrooms
Programming Courses
Qualification Prep Courses
Individual Tutoring
IT Education Programs

Used Trading Card Distribution

Overview

Supports card enthusiasts with used trading card buyback/sales and specialized spaces.

Competitiveness

Expertise in high-specialty trading card sales and space provision

Customers

Card Game Enthusiasts
Collectors
Franchise Stores
Game Shops
Event Organizers

Products

Used Card Sales
Card Buyback Services
Duel Space Provision
Event Support
Supply Item Sales

Hobby Product Distribution

Overview

Provides hobby products to wholesalers and retailers, supporting enthusiast market growth.

Competitiveness

One-stop supply with diverse product lineup

Customers

Hobby Shops
Collectors
Event Vendors
Model Enthusiasts
Online Retailers

Products

Plastic Model Wholesaling
Figure Sales
Model Parts Supply
Character Goods
Collection Supplies

Competitive Advantage

Strengths

Strong regionally rooted store network
Diverse product lineup and composite business expansion
Rental item procurement strength via GEO alliance
Expertise in used books and trading card distribution
Advanced introduction of smart stores
Low-price sports club franchise operations
Customer touchpoint diversification via PC classes and tutoring
Rich customer base and long-term regional trust
Expansion power through proprietary franchises
Efficient holding company structure

Competitive Advantages

Strong customer base from regionally rooted stores centered in Tokai, expanding to Kinki and Kanto
Revenue stabilization through composite business structure beyond books to stationery, DVDs, and games
Cost competitiveness from joint rental item procurement via business-capital alliance with GEO
Advanced smart store rollout with 24-hour unmanned operations and facial recognition entry
Successful diversification via franchises in used books and sports clubs
Maintains competitiveness with diverse products and services tailored to regional characteristics
Expands customer touchpoints by integrating proprietary education services (PC classes, etc.) in stores
Trust built on long history as an established business with regional roots
Enables comprehensive sales and services through multi-industry collaborations
Holding company structure enables agile subsidiary management and flexible growth strategies

Threats

Intensifying competition for physical stores due to surge in online shopping
Decline in book demand from smartphone and digitalization
Risk of market shrinkage from youth reading decline
Competitors' low-price strategies and business diversification
Revenue impact from used goods market fluctuations
Rising store operating costs in depopulating areas
Changes in consumer behavior from COVID-19 and other infections
Impact on insurance sales from regulatory changes
Intensified competition for new franchise recruits
Decline in software rental demand from online content services
Shrinkage of non-durable goods market from regional economic fluctuations
Rising store operating costs from labor shortages

Innovations

2024: Opening of 24-Hour Unmanned Smart Stores

Overview: Opened 24-hour unmanned stores with facial recognition entry and self-checkout at Toyota City Hon-aratama store and Nagoya Yomogi store.
Impact: Increased sales from improved customer convenience and extended hours

2022: Opening of First Surugaya FC Store

Overview: Opened used buyback/sales base for games, figures, and other hobby products at Kakonan store.
Impact: Contributes to new customer acquisition in hobby market and sales diversification

2020: Opening of First Trading Card Hall

Overview: Opened specialized store with new/used trading card sales and duel space at Shinkai Bridge store.
Impact: Successfully captured trading card fans, expanding new customer base

2020: Official Website Renewal

Overview: Added online reservation/ordering, in-store stock check/hold services, and staff introduction articles.
Impact: Enhanced customer services and online engagement

2024: Expansion of GEO Business-Capital Alliance

Overview: In addition to joint rental item procurement, strengthens collaboration between stores.
Impact: Procurement cost reductions and improved service convenience

2023: Strengthened Used Book Buyback Franchise Expansion

Overview: Enhanced services and store support through absorption merger of subsidiary Medisite.
Impact: Efficiency in used book distribution business and expanded revenue base

2021: Start of Low-Price Sports Club Alliance

Overview: Signed franchise agreement with Actus Will_G, opened first store at Shidami store.
Impact: Revenue diversification through new entry into sports club business

Sustainability

Promoting energy-saving measures in stores
Advancing paperless operations and sales of eco-friendly products
Participating in local cleanup activities and community events
Thorough waste recycling
Eco-bag usage promotion campaigns
Expanding fitness business for health promotion
Reforming work styles and strengthening employee health management
CSR activities aiming for coexistence with local communities
Reducing paper resources through digitalization
Changing packaging materials considering plastic reduction