Create SD Holdings

Basic Information

Stock Code
3148
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Kanagawa Prefecture
Establishment Year
November 2006
Listing Year
March 2009
Official Website
https://www.createsdhd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kawachi Pharmaceutical, Honeys HD, MatsukiyoCocokara & Company, Welcia Holdings, Cosmos Pharmaceutical, Tsuruha Holdings, Kusuri Aoki, Niitaka, Sugi Holdings, Yakuo-do Holdings, Genky Drugstores, Sundrug

Overview

Create SD Holdings is a holding company for a drugstore and dispensing pharmacy chain founded in 1983 and based in Kanagawa Prefecture, operating 659 stores from the Kanto to Tokai regions, making it a leading company in the industry.

Current Situation

Create SD Holdings achieved consolidated sales of approximately 422.3 billion yen and operating profit of approximately 20.2 billion yen in the fiscal year ending May 2024. Its main subsidiary, Create S・D, operates drugstores and dispensing pharmacies mainly in the Kanto region, belongs to the Nichiryu Group, and is strengthening food handling. The number of stores is increasing within the industry, with 659 stores as of the end of 2021. Since 2019, it has actively engaged in community contributions such as disaster response agreements and police agreements for traffic accident prevention. Under the holding company structure, it operates diverse subsidiaries, strives to improve customer satisfaction through store operations tailored to customer needs and prepaid card point programs, and aims for steady growth in the highly competitive drugstore industry through a wide range of products and store expansion centered in the Kanto area. Ongoing attention is focused on related industry news and personnel changes.

Trivia

Interesting Facts

  • The SD in Create SD stands for Super Drugstore.
  • Has grown into one of Japan's largest drugstore chains.
  • Founded in 1983, continues regionally integrated store deployment.
  • Prepaid card 'Osai fu Hippo' is popular among customers.
  • Strengthening food division in collaboration with Nichiryu Group.
  • High social contribution through traffic accident prevention agreements and disaster support agreements.
  • Holds many stores from central Tokyo to Kanto and Tokai regions.
  • Diversified management through wide range of drugstore-related products.
  • Aggressive M&A within the industry, adopting expansion-type growth model.
  • Theme song sung by indie band 'Aprilz'.
  • Renewed POS system to improve store efficiency.
  • Co-locates dispensing pharmacies to contribute to medical supply.
  • Focuses on strengthening ties with local communities.
  • Efficient group management through holding company structure.
  • Major shareholders include Yohei Yamamoto and Hisao Yamamoto.

Hidden Connections

  • Belongs to Nichiryu Group and handles many of its food private brand products.
  • High social credibility due to traffic accident prevention collaboration agreement with Kanagawa Prefectural Police.
  • Attracts interest in capital and management from peers like Kusuri no Aoki Holdings and Honeys HD.
  • Subsidiary Well Life has entered the care market through paid nursing home operations.
  • Osai fu Hippo card is highly evaluated as a unique drugstore point service in the market.
  • Create S・D features a store network spanning from Kanto to Tokai regions, closely tied to local communities.
  • Many stores are directly operated, strong in operational efficiency.
  • Actively promoting business efficiency measures through IT system introductions in recent years.

Future Outlook

Growth Drivers

  • Ongoing increase in drugstore demand in the Kanto region
  • Expansion of dispensing pharmacy and care-related demand accompanying aging society
  • Strengthened PB product deployment through Nichiryu Group collaboration
  • Business efficiency and customer experience improvements via IT introduction
  • Strengthening of regionally integrated services and expansion of social contribution activities
  • New store openings and functional enhancements of existing stores
  • Increased demand for supplements and health foods due to rising health consciousness
  • Brand value enhancement through environmentally considerate store operations
  • Customer retention promotion through prepaid cards and point services
  • Active investments in new business areas
  • Competitive strengthening through store network optimization
  • Agile group operations through holding company structure

Strategic Goals

  • Expand drugstore store count in major domestic regions
  • Strengthen and expand integration of dispensing and care services
  • Achieve over 50% PB sales ratio within Nichiryu Group
  • Revolutionize customer services through IT and digital technology utilization
  • Improve social evaluation through strengthened regional community collaborations
  • Advance decarbonization with energy-saving store deployment across all stores
  • Build sustainable dispensing supply chain
  • Expand portfolio of health promotion and preventive medicine related products
  • Promote employee diversity and work-friendliness
  • Expand market share through strategic M&A

Business Segments

Dispensing Services for Medical Institutions

Overview
Provides dispensed medicines and medication management support to hospitals and clinics.
Competitiveness
Abundant medicine inventory and specialized pharmacist system
Customers
  • Hospitals
  • Clinics
  • Care Facilities
  • Pharmacy Chains
Products
  • Prescription Dispensing
  • Generic Medicines
  • Medication Management Support Services
  • Pharmaceutical Sales

Nursing Home - Care Facility Operations

Overview
Operates nursing homes and care services through Well Life.
Competitiveness
High-quality care services through close regional ties
Customers
  • Paid Nursing Home Operators
  • Care Service Providers
Products
  • Care-Attached Paid Nursing Homes
  • Day Services
  • Care Product Rentals

Pharmaceuticals - Daily Goods Wholesale

Overview
Stable supply of medicines and daily goods to retailers.
Competitiveness
Wide-area network and logistics capabilities
Customers
  • Drugstores
  • Retailers
  • Pharmacies
Products
  • Medicines
  • Cosmetics
  • Daily Necessities

Private Brand Development

Overview
Planning, development, and sales support for Nichiryu Group's PB products.
Competitiveness
High-quality PB products through group collaboration
Customers
  • Group Stores
  • Partner Retailers
Products
  • Kurashi More Series
  • Healthcare Products
  • Cosmetics

Logistics - Warehouse Management

Overview
Efficient distribution center operations for rapid store delivery.
Competitiveness
Introduction of advanced logistics systems
Customers
  • Own Stores
  • Partner Chains
Products
  • Product Storage
  • Distribution Center Operations
  • Logistics Optimization Services

Marketing - Point Services

Overview
Deploys marketing initiatives to promote customer repeat visits.
Competitiveness
Unique prepaid card integration
Customers
  • General Consumers
  • Corporate Partners
Products
  • Osai fu Hippo Prepaid Card
  • Point Refund Program
  • Customer Data Analysis Services

IT System Development - Support

Overview
Provides IT solutions supporting store operations.
Competitiveness
System development tailored to on-site needs
Customers
  • Group Stores
  • External Companies
Products
  • Store Management Systems
  • Inventory Management Software
  • Business Efficiency Tools

Human Resource Development - Training Services

Overview
Supports improvement of employee expertise and service quality.
Competitiveness
Training programs specialized for the drugstore industry
Customers
  • Group Employees
  • External Training Institutions
Products
  • Pharmacist Training
  • Customer Service Skills Training
  • Management Training

Real Estate Management - Development

Overview
Handles essential real estate management and development for store expansion.
Competitiveness
Optimal land utilization tailored to regional characteristics
Customers
  • Group Stores
  • Third-Party Operators
Products
  • Store Land Management
  • Commercial Facility Development
  • Rental Management

Sales of Health - Care Related Products

Overview
Offers diverse products responding to aging society.
Competitiveness
Collaborative system with medical and care sites
Customers
  • General Consumers
  • Care Facilities
Products
  • Care Beds
  • Health Devices
  • Rehabilitation Products

Regional Health Promotion Programs

Overview
Various programs supporting regional residents' health improvement.
Competitiveness
Regionally integrated service deployment
Customers
  • Local Governments
  • Regional Medical Institutions
Products
  • Health Consultations
  • Preventive Medicine Activities
  • Lifestyle Disease Measures

Advertising - Promotion Business

Overview
Provides various advertising and promotion services contributing to sales growth.
Competitiveness
Expertise familiar with the drugstore industry
Customers
  • Group Stores
  • External Companies
Products
  • In-Store Promotional Advertising
  • Event Planning and Operations
  • Digital Marketing

Competitive Advantage

Strengths

  • Powerful store network centered in the Kanto region
  • Established brand strength in the drugstore industry
  • Rich product categories and diverse product offerings
  • High evaluation for regionally integrated services and community contributions
  • Efficient business oversight through holding company structure
  • Strong alliance with Nichiryu Group and private brand expansion
  • Customer loyalty through unique point programs
  • Fulfillment of social responsibility such as disaster response community support agreements
  • Diversified revenue sources through multifaceted business operations
  • Business efficiency improvements via latest IT systems
  • Response to medical needs through dispensing pharmacy co-located stores
  • Possesses high-level employee training programs
  • Stable capital base and financial position
  • Elderly market response through linkage with care and nursing home business
  • History of active M&A within the industry

Competitive Advantages

  • Achieves competitive food selection and pricing with Nichiryu Group support
  • Regionally integrated store deployment and strong trust with local residents
  • Provision of wide-ranging healthcare services including dispensing pharmacies
  • Agile operations specialized in local areas compared to nationwide major chains
  • Rapid customer response through strengthened IT and marketing infrastructure
  • Scale expansion effects accompanying store increase strategy
  • Customer retention through proprietary prepaid cards and point systems
  • One-stop shopping through handling diverse product categories
  • Enhanced social credibility based on collaborations with local governments and police
  • Domain expansion and competitive superiority through active M&A
  • Revenue stabilization through multifaceted B2B businesses
  • Strengthened quality assurance with on-site specialized pharmacists
  • Rich store operation know-how enabling rapid response for new openings
  • Customer base expansion through co-located elderly care services
  • Long-term trust acquisition through management considering sustainability

Threats

  • Profit pressure from intense competition in the drugstore market
  • Competition with major rivals such as MatsukiyoCocokara & Company, Tsuruha HD, etc.
  • Impact of rising raw material prices and increased distribution costs
  • Risks from changes in medical and care systems accompanying aging society
  • Rapid expansion of new entrants and online sales
  • Business impacts from drug regulations and various legal changes
  • Store damage and logistics disruptions from natural disasters
  • Possibility of failing to respond to diversifying consumer needs
  • Risk of increased point program costs
  • Ongoing store operations difficulties due to labor shortages
  • Impact of consumption decline from economic downturn
  • Risk of information security incidents

Innovations

2023: Store IT System Renewal

Overview
Introduced latest POS systems to promote store operation efficiency.
Impact
Improved operational efficiency and inventory management accuracy

2022: Traffic Accident Prevention Agreement

Overview
Signed collaboration agreement with Kanagawa Prefectural Police for traffic safety awareness to strengthen social contributions.
Impact
Enhanced trust from the region and brand value

2021: Expansion of Dispensing Co-located Stores

Overview
Increased stores with dispensing functions to strengthen one-stop service system.
Impact
Improved customer satisfaction and store competitiveness

2020: Yuri Store Acquisition for Store Expansion

Overview
Acquired Yuri Store in Kawasaki City to expand Kanto region business.
Impact
Increased store network and strengthened customer base

2024: Prepaid Card Function Enhancement

Overview
Expanded Osai fu Hippo point refund program to promote customer retention.
Impact
Promotes customer repeat visits and sales growth

Sustainability

  • Signed disaster response agreements with multiple local governments to contribute to regional disaster prevention
  • Active participation in traffic accident prevention activities
  • Efforts toward store energy conservation and reduced environmental impact
  • Implementation of regional welfare activities and strengthened elderly support
  • Progress in plastic reduction initiatives
  • Promotion of sustainable dispensing business
  • Improved waste recycling rate
  • Support for employee work-life balance
  • Hosting regional health education programs
  • Continuous improvement of safe work environments
  • Promotion of local agricultural product utilization
  • Practice of fair transactions