Kaitori Okoku

Basic Information

Stock Code
3181
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Aichi Prefecture
Establishment Year
October 1999
Listing Year
February 2013
Official Website
https://www.okoku.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Kaitori Okoku is a leading company in the used goods retail industry founded in 1999, operating comprehensive recycling shops centered on clothing and hobbies in the Chubu and Kansai regions, with strengths in rapid store expansion and IT utilization.

Current Situation

Kaitori Okoku recorded net sales of approximately 6.7 billion yen and operating profit of approximately 500 million yen in the fiscal year ended February 2024, operating 38 stores mainly in Aichi Prefecture, as well as Gifu, Mie, Osaka, and Kyoto. Its mainstay is the sale of used goods including clothing and toys, with each store having a unique character tailored to local needs. It excels in quick store openings and closings, creating store formats suited to the times, while investing in IT for e-commerce and store management to improve efficiency. In August 2024, it acquired businesses to diversify its product lineup and aims to further expand its scale. It maintains a solid financial base with 134 employees. Moving forward, it will strengthen competitiveness through community-oriented store expansion fused with IT technology, pursuing growth strategies that capitalize on the expanding recycling market and sustainability perspectives.

Trivia

Interesting Facts

  • Originated from Mars Co., Ltd., which became independent from Kyowa Shoji in 1999.
  • Each store has a characteristic product composition focused on local community.
  • Listed on the Tokyo Stock Exchange Standard Market in 2013.
  • Acquired part of Best Buy's business in 2024 and expanding.
  • Scale of 38 stores nationwide with 134 employees.
  • Active in store management efficiency through IT investments.
  • Comprehensive recycling store centered on clothing and toys.
  • Uses Isuzu Audit Corporation as accounting auditor.
  • Major shareholder Culture Business LLC holds 36.5%.
  • Strengthening collaboration with EC business to expand online sales.

Hidden Connections

  • Connected to Ryouhin Kaiten business network through acquisition from Best Buy.
  • Strong foundation in used goods market in Chubu and Kansai regions.
  • Competes with multiple rivals as Tokyo-listed companies.
  • Store management system using IT is advanced in the industry.
  • Representative Director Kazuo Hasegawa has been a key figure since founding.
  • Contributes to local economy as community-oriented retailer.
  • Relatively large net assets over ¥2.7 billion in the used goods industry.
  • Achieves differentiation from other recycling shops through diverse products.

Future Outlook

Growth Drivers

  • Expansion of used goods market and rising consumer awareness
  • Business efficiency and customer convenience improvements through IT investments
  • Product lineup strengthening through business acquisitions
  • Advancing fusion of EC and physical store sales channels
  • Increasing demand for sustainable goods and services
  • Customer base strengthening through community-oriented services

Strategic Goals

  • Sustainable store expansion and revenue base strengthening
  • Increase EC business sales to over 20% of total sales
  • Strengthen environmentally considerate activities based on sustainability metrics
  • Reduce store operating costs by 30% through IT utilization
  • Raise revenue contribution from diversified businesses to 15%
  • Establish corporate brand deepened through collaboration with local communities

Business Segments

Used Goods Wholesale

Overview
Mainly wholesales used goods to small and medium-sized retailers, supporting distribution channels.
Competitiveness
Utilizes diverse product range and local sales network
Customers
  • Retail stores
  • Recycling shop chains
  • Franchise stores
  • Local shops
Products
  • Used clothing
  • Used toys
  • Used home appliances
  • Furniture
  • Other used goods

Store System Sales

Overview
Introduces and sells IT-based store management systems to support business efficiency.
Competitiveness
Proprietary advanced EC management functions
Customers
  • FC franchise stores
  • Small and medium retailers
Products
  • Store management systems
  • Inventory management systems
  • EC integration software

Corporate Recycling Services

Overview
Supports reuse and recycling needs of corporations and governments.
Competitiveness
Rapid response possible due to local presence
Customers
  • Corporations
  • Government agencies
  • Event operators
Products
  • Recycled goods collection
  • Disposal buyback
  • Environmental consulting

EC Platform Provision

Overview
Self-operates an online used goods trading platform and is expanding.
Competitiveness
Efficient logistics system linked with stores
Customers
  • Individual consumers
  • Small businesses
Products
  • Self-operated online shop
  • Listing support services

Competitive Advantage

Strengths

  • Community-oriented store operations through wide-area expansion
  • Rapid store opening and closing capabilities
  • Business efficiency through IT investments
  • Product strength from handling diverse used goods categories
  • Stable management by experienced executives
  • Establishment of proprietary brands
  • Strong customer base
  • Flexible store formats to differentiate from competitors
  • Stable funding capabilities
  • High specialized knowledge of employees

Competitive Advantages

  • Store-specific product assortments and sales strategies optimized for each region
  • Diversified sales channels through integration of EC and physical stores
  • Captures customer needs with wide range of used goods buybacks
  • Rapid product turnover via IT systems for logistics and inventory management
  • Abundant in-store customer service expertise and trust
  • Stable funding through good relations with financial institutions
  • Flexible management decisions responding to market need changes
  • Business expansion and revenue base strengthening through acquisitions

Threats

  • Profit margin pressure from intensifying used goods market competition
  • Customer outflow due to emergence of new EC platforms
  • Increased operating costs from stricter regulations
  • Decline in consumer purchasing intent due to economic fluctuations
  • Product quality management and counterfeit risks
  • Rising logistics costs
  • Difficulty in securing talent
  • Increasing competitors in the used goods market

Innovations

2024: Partial Acquisition of Ryouhin Kaiten Business

Overview
Acquired part of Ryouhin Kaiten business and Tool Man pro-tool specialty store business from Best Buy Co., Ltd.
Impact
Contributes to expanding product lineup and strengthening revenue base.

2023: Latest EC System Implementation Completed

Overview
Introduced new EC system integrated with store management system to strengthen online sales.
Impact
Achieved improved sales efficiency and customer convenience.

2022: Advancing Digitalization of Store Equipment

Overview
Utilized IT tools for inventory management and sales promotion to enhance store operation efficiency.
Impact
Demonstrated business efficiency and cost reduction effects.

2021: Smartphone Buyback Enhancement Program Launched

Overview
Strengthened handling of used smartphones to target new customer segments.
Impact
Contributed to increased sales of used digital devices.

2020: Store-Specific Events Held

Overview
Held community-oriented used goods flea markets and exhibitions to strengthen customer touchpoints.
Impact
Improved store foot traffic and customer loyalty.

Sustainability

  • Promoting used goods reuse to reduce waste
  • Implementing store energy-saving measures to reduce environmental impact
  • CO2 emission reductions through business efficiency
  • Environmental awareness initiatives through collaboration with local communities
  • Plastic reduction campaigns in stores
  • Promoting resource recycling and proper waste management
  • Exploring and improving sustainable sales methods