Joyful Honda

Basic Information

Stock Code
3191
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Ibaraki Prefecture
Establishment Year
December 1975
Listing Year
April 2014
Official Website
https://www.joyfulhonda.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Joyful Honda was founded in 1975 and operates super-large home centers mainly in Ibaraki Prefecture and the Kanto region, holding a top-class position in the industry in terms of store size and sales.

Current Situation

Joyful Honda achieved standalone sales of approximately 126.8 billion yen and operating profit of approximately 10.5 billion yen in the fiscal year ending June 2024, maintaining high profitability. Its core home center business leverages large trading areas, boasting top-10 nationwide sales with just 17 stores. The business strategy emphasizes scalability through land expansion, successfully enhancing product variety and expanding its customer base with super-large stores. The gas station business was transferred to Idemitsu Kosan in 2020, allowing focus on core operations. It pursues regionally rooted management, strengthening its customer base across the entire Kanto region, and in the medium to long term, focuses on expanding the new format 'Joyhon' and diversifying through material halls. It also addresses sustainability by actively working on CO2 emission reductions and regional contributions. It is advancing logistics and digitalization enhancements to build an efficient operational structure. Additionally, it invests resources in sports support activities to strengthen ties with the local community.

Trivia

Interesting Facts

  • Average store area equivalent to about 2.3 Tokyo Domes.
  • Few stores but boasts top-class industry sales.
  • Founder Masaya Honda has a gentlemen's agreement with Yamashin Home Center in the same Ibaraki Prefecture.
  • Past incident where related parties were arrested for unregistered parrot sales at pet shops.
  • Store expansion strategy grew sites from bowling alley locations to multiple times larger.
  • High-profile stores featured multiple times on TV programs 'Tokoro Japan' and 'Lovely!'
  • Sports support includes partnership with local Tsukuba FC soccer club.
  • Logo for new format 'Joyhon' designed by team led by Kashiwa Sato.
  • Operates limited-time women's pop-up store 'JOYFUL Petit'.
  • Related company Joyful AK in Hokkaido also operates multiple stores in the same industry.
  • Transferred gas station business to Idemitsu Kosan in 2020 to consolidate operations.
  • Also operates shopping mall 'Fashion Cruise Newport Hitachi-Naka'.
  • Transferred part of MTJ Fitness stock to operating company for joint management.
  • Stores in Keiyo Newtown, Mizuho, Utsunomiya, etc., run free shuttle buses.
  • Some stores near Tokyo provide coordinated shuttle services from multiple stations.

Hidden Connections

  • Founder Masaya Honda was disciples with former Yamashin president, establishing a gentlemen's agreement to divide regions.
  • Multiple home centers with 'Joyful' name exist, connected through guidance or partnerships.
  • Long-term continuation of sports support linked with local soccer groups.
  • Actively utilizes existing building sites for store land to reduce costs and enable quick openings.
  • Store shuttle bus operations play a key role in maintaining regional customer attraction.
  • Gas station business transfer to Idemitsu Kosan was part of asset selection and concentration.
  • Diversified management through specialty and pet shop operations.
  • New format developments involve cooperation from renowned domestic and international designers.

Future Outlook

Growth Drivers

  • Market development through rollout of new format 'Joyhon'
  • Sales growth via land expansion of existing stores
  • Strengthening regionally rooted services and promoting shuttle bus usage
  • Deepening regional community ties including sports support
  • Enhancement of environmentally sustainable products
  • Improvement in customer touchpoints and logistics efficiency through digitalization
  • Expansion of diversified specialty stores
  • B2B sales expansion through material hall openings
  • Expanded utilization of regional events and promotions
  • Staff training and human resource development enhancement

Strategic Goals

  • Maintain and expand sales within top 5 home center industry players
  • Expand rollout of new format stores across Kanto region nationwide
  • Achieve 50% reduction in CO2 emissions
  • Establish symbiotic model with local communities
  • Achieve 80% digitalization rate in store operations

Business Segments

Building Materials Supply

Overview
Stable supply of building materials and tools to small and medium-sized construction firms and local governments.
Competitiveness
Extensive product lineup and regionally rooted sales capabilities
Customers
  • Remodeling Contractors
  • Construction Companies
  • Local Builders
  • DIY Enthusiasts
  • Local Governments
Products
  • Lumber
  • Paints
  • Construction Machinery
  • Tools
  • Piping Materials

Gardening & Agricultural Materials

Overview
Strong segment in supplying materials to farmers.
Competitiveness
Product proposals tailored to local needs
Customers
  • Agricultural Corporations
  • Garden Centers
  • Individual Farmers
  • Gardening Businesses
Products
  • Fertilizers
  • Pesticides
  • Seeds
  • Gardening Soil
  • Farm Tools

Corporate Pet-Related Products

Overview
Provision and support of pet supplies for corporate customers.
Competitiveness
Customer support system via specialty store operations
Customers
  • Veterinary Clinics
  • Pet Shops
  • Pet Hotels
  • Grooming Salons
Products
  • Pet Food
  • Hygiene Products
  • Care Supplies
  • Pet Bedding

Renovation & Extension Services

Overview
Renovation business for homes and facilities.
Competitiveness
Integrated services linked with in-house construction
Customers
  • Homeowners
  • Condominium Management Associations
  • Commercial Facilities
Products
  • Extension Work
  • Exterior Work
  • Renovation Materials

Corporate Logistics & Delivery Support

Overview
B2B logistics services aimed at improving efficiency.
Competitiveness
Local logistics leveraging home center network
Customers
  • Local Retailers
  • Industrial Corporations
  • Delivery Companies
Products
  • Warehouse Management
  • Product Delivery
  • Logistics Consulting

Fitness Club Operations

Overview
Sports-related business through 33% ownership in MTJ Fitness.
Competitiveness
Regionally rooted sports club operations
Customers
  • Individual Members
  • Local Sports Groups
Products
  • Training Facilities
  • Sports Classes

Corporate Sales Promotion Support

Overview
Sales and marketing support for local businesses.
Competitiveness
Network with local companies
Customers
  • Local Retail Stores
  • Event Organizers
Products
  • Advertising Production
  • Event Planning
  • Store Promotion

Environmental Services

Overview
Various support services for regional environmental conservation.
Competitiveness
Contribution to sustainable local communities
Customers
  • Local Governments
  • Environmental Conservation Groups
Products
  • CO2 Emission Reduction Support
  • Environmental Education

Home Center Product Wholesale

Overview
Product supply and order support for small stores.
Competitiveness
Rich product lineup and ordering system
Customers
  • Small Home Centers
  • Specialty Stores
Products
  • DIY Supplies
  • Gardening Supplies
  • Pet Supplies

IT & Digital Solutions

Overview
Utilization of IT for business efficiency and improved customer response.
Competitiveness
Optimization support based on store operation data
Customers
  • Sales Stores
  • Logistics Division
  • Customer Management
Products
  • Sales Management Software
  • Customer Relationship Management (CRM)
  • Digital Marketing

Building Materials Processing Services

Overview
Contributes to construction efficiency through material processing.
Competitiveness
High-precision processing technology and flexible response
Customers
  • Home Construction Contractors
  • Design Offices
Products
  • Lumber Processing
  • Custom-Made Materials Manufacturing

Shopping Mall Operations

Overview
Management and operation of Fashion Cruise Newport Hitachi-Naka.
Competitiveness
Formation of the largest regional shopping area
Customers
  • Tenant Businesses
  • Consumers
Products
  • Store Leasing
  • Event Hosting

Competitive Advantage

Strengths

  • Wide-area customer attraction through large stores
  • Store expansion capability via scalability
  • Strong customer base centered in Kanto region
  • Diversified product and service offerings
  • Own brands and specialty store operations
  • Regionally rooted operational structure
  • Solid financial base and stable earnings
  • Logistics network efficiency
  • Sports support and other regional contribution activities
  • Operational efficiency through digitalization

Competitive Advantages

  • Top-class average store area and sales in the industry
  • High convenience from large roadside stores
  • Long-term growth through scalability strategy
  • Development and rollout of unique new format 'Joyhon'
  • Strong relationship building with local residents
  • Existence of high-quality specialty store brands
  • Synergies with diverse related businesses
  • Effective regional shuttle bus services
  • Efficient restructuring of former gas station business
  • Enhanced brand value through sports promotion support in the region

Threats

  • Intense competition in the retail industry
  • Risk of customer loss due to EC and online shopping proliferation
  • Regional economic fluctuations and demographic changes
  • Cost increases from strengthened regulations
  • Delays in environmental and sustainability responses
  • Rising raw material prices and unstable procurement
  • Decline in operational efficiency due to labor shortages
  • Market adaptation risks for new formats
  • Fluctuations in customer visits due to poor weather
  • Decline in consumer sentiment from economic changes

Innovations

2023: Opening of Super-Large New Format Store 'Joyhon Park Yoshioka'

Overview
Opened a super-large store with a complex commercial facility featuring 43 tenants in Gunma Prefecture.
Impact
Contributed to strengthening regional customer attraction and increasing sales.

2022: Opening of New Format 'Joyhon Oyama Station Front Store'

Overview
Opened the first small specialty store different from conventional home centers in front of JR Oyama Station.
Impact
Cost reduction through use of existing buildings and acquisition of new customer segments.

2021: Introduction of d Points to Strengthen Customer Loyalty

Overview
Improved convenience by adopting smartphone payment point services.
Impact
Successfully increased repeat customers and promoted purchases.

2020: Transfer of Gas Station Business to Idemitsu Kosan

Overview
Strategically reorganized and transferred the JSS brand gasoline business.
Impact
Achieved business selection and concentration, optimizing management resources.

Sustainability

  • Efforts to reduce store CO2 emissions (approx. 3,800 tons annually)
  • Promotion of EV charging equipment installation in store parking lots
  • Regional environmental conservation and resource recycling promotion
  • Expansion of sustainable products
  • Advancement of environmental education through collaboration with local communities