Tsuruha Holdings

Basic Information

Stock Code
3391
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Hokkaido
Establishment Year
June 1963
Listing Year
November 2005
Official Website
https://www.tsuruha-hd.co.jp
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kawachi Pharmaceutical, Matsukiyo Cocokara & Company, Welcia Holdings, Create SD Holdings, Cosmos Pharmaceutical, Seven & i Holdings, Kusuri no Aoki Holdings, Fuji Media Holdings, Toyota Industries, Shibaura Electronics, Sugi Holdings, Yakuo-do Holdings, Shimamura, Aeon, Genky Drugstores, NTT Data Group, Sundrug

Overview

Tsuruha Holdings is a major drugstore holding company founded in Hokkaido in 1963, operating over 2,500 stores nationwide and boasting top-class scale in the industry.

Current Situation

Tsuruha Holdings recorded consolidated sales of approximately 919.3 billion yen and operating profit of approximately 48.4 billion yen in the latest fiscal year ending May 2021, serving as a holding company responsible for management and strategic support of group companies. Its core drugstore business has expanded nationwide, centered on Hokkaido and Tohoku, with subsidiaries including Tsuruha as the mainstay, Kusuri no Fukutaro, Ready Pharmacy, Kyourin-do Pharmacy, and Drug Eleven as regionally specialized brands. Through capital alliances with three companies, it plans to make industry giant Welcia Holdings a wholly-owned subsidiary by December 2025, further enhancing market competitiveness. It actively introduces the latest payment infrastructure such as electronic money and barcode payments to improve convenience. The private brand 'Kurashi Rhythm' series leads growth in daily necessities and pharmaceuticals, while engaging in a wide range of community contribution activities. Moving forward, it aims for further growth toward 2030 by strengthening online sales, optimizing store networks, promoting sustainable management, and enhancing competitiveness through digital transformation.

Trivia

Interesting Facts

  • Has history founded in 1929 as 'Tsuruha Yakushido' in Asahikawa, Hokkaido.
  • Achieved No. 1 store count in Japan's drugstore industry in 2017.
  • Maintains regional brands while expanding nationwide.
  • Pioneering company that introduced industry-first multi-electronic money payment terminals to all stores.
  • Successfully differentiated through private brand products of three brands.
  • Strongly advancing capital and business alliance with parent Aeon.
  • Expanding local stores through joint venture company in Thailand.
  • Employs approximately 10,800 people, a very large organization.
  • Group points cards allow mutual use for high customer convenience.
  • Actively expanding online mail order business and smartphone payments in recent years.

Hidden Connections

  • Aeon is the largest shareholder, strengthening group collaboration.
  • Planned management integration with industry giant Welcia Holdings.
  • Joint venture business in Thailand with Saha Group.
  • Drug Eleven transitioned from past capital tie-up with JR Kyushu to consolidated subsidiary.
  • Possesses unique product development capabilities through private brand development.
  • Known as IT-leading company with LINE official account and electronic payment introductions.
  • Boasts overwhelming store count among regionally rooted drugstore chains.
  • Maintains multi-channel approach with group mail order business.

Future Outlook

Growth Drivers

  • Response to increasing medical and nursing care demand due to population aging
  • Sophistication of customer services through digitalization promotion
  • Improved customer convenience through diverse payment methods
  • Private brand product expansion and differentiation
  • Leveraging synergy effects from integration with Welcia
  • Online mail order expansion and omni-channel strategy
  • Resource utilization through strengthened Aeon Group collaboration
  • Strengthening of regionally rooted store rollout
  • Expanded capture of health-oriented products and services
  • Overseas market expansion and local response strengthening
  • Promotion of environmentally considerate management and ESG strategies
  • Customer loyalty enhancement through points system

Strategic Goals

  • Maintain top position in drugstore industry
  • Achieve over 3,000 group stores
  • Complete company-wide DX through digital technologies
  • Double private brand sales
  • Promote coexistence and co-prosperity with regional communities
  • Advance initiatives toward carbon neutrality
  • Develop new business areas and create growth
  • Deploy services meeting diverse customer needs
  • Further increase online sales ratio
  • Strengthen nationwide system in collaboration with Welcia HD

Business Segments

Wholesale to Medical Institutions

Overview
Stable supply of a wide range of pharmaceuticals and consumables to medical institutions and dispensing pharmacies.
Competitiveness
Extensive product lineup and nationwide delivery network
Customers
  • Hospitals
  • Clinics
  • Dispensing pharmacies
  • Nursing facilities
Products
  • Pharmaceuticals
  • Business-use medical consumables
  • Dispensing equipment
  • Nursing care products

Retail Store Operation Support

Overview
Provides operation consulting and planning services to group stores and partners.
Competitiveness
Flexible proposal capabilities tailored to regional characteristics
Customers
  • Drugstore operators
  • Chain stores
  • Franchise stores
Products
  • Store operation support services
  • Marketing support
  • Product planning
  • Private brand development

Logistics Services

Overview
Supports efficient and safe logistics infrastructure, optimizing supply chains.
Competitiveness
Nationwide logistics bases and IT utilization
Customers
  • Group companies
  • External retailers
  • E-commerce operators
Products
  • Pharmaceuticals and daily goods logistics
  • Cold chain delivery
  • Distribution center operations

Private Brand Planning and Development

Overview
Supports differentiation with brand products focused on quality and price.
Competitiveness
Product development capabilities aligned with consumer needs
Customers
  • Drugstores
  • Retailers
  • Consumers
Products
  • M's One series
  • Mediz One series
  • Kurashi Rhythm series

Electronic Payment Services

Overview
Introduces latest payment and points initiatives to enhance customer convenience.
Competitiveness
Rapid adoption of IT technologies within the industry
Customers
  • Group stores
  • Consumers
Products
  • HAPPEY payment app
  • Various electronic money introductions
  • Points card system

Mail Order Business

Overview
Expands sales channels through internet mail order.
Competitiveness
Diverse product offerings realized through group collaboration
Customers
  • General consumers
  • Corporate customers
Products
  • Pharmaceuticals and daily goods mail order
  • Health food mail order
  • Online consultation services

Insurance Agency Operations

Overview
Provides insurance sales and management services to the group.
Competitiveness
Support by dedicated staff with specialized knowledge
Customers
  • Group employees
  • General customers
Products
  • Various casualty insurance
  • Life insurance products

Overseas Expansion Support

Overview
Operates drugstores in Thailand to develop the local market.
Competitiveness
Long-term local subsidiary operation experience and collaboration
Customers
  • Thailand market
  • Overseas partner companies
Products
  • Local store operations
  • Joint venture management
  • Overseas market research

Competitive Advantage

Strengths

  • Industry-leading store network and brand power
  • Coverage through diverse regionally specialized subsidiaries
  • Advanced electronic payment infrastructure introduction
  • Rich product development capabilities and private brand rollout
  • Strong support from Aeon Group
  • Nationwide logistics network development
  • Stable financial base
  • Regionally rooted store strategy
  • Rich customer points system
  • Expansion of mail order channels
  • Market share expansion through long-term management integration
  • Diverse promotional campaign rollout
  • Specialized services provided by pharmacists
  • Abundant payment options
  • Advanced IT system utilization

Competitive Advantages

  • Position as the leading drugstore chain based in Hokkaido and Tohoku
  • Expected synergy effects from management integration with Welcia HD
  • Optimization of management resources through collaboration with Aeon Group
  • Broad customer capture in regions through unique multi-brand rollout
  • Improved customer loyalty via private brand 'Kurashi Rhythm'
  • High convenience from support for multiple electronic money options
  • Efficient store operations through nationwide logistics and information systems
  • Early introduction of diverse payment services to promote digital shift
  • Franchise expansion and subsidiary collaboration tailored to regional characteristics
  • Enhanced customer benefits through mutual points card usage
  • Expansion of product lineup reflecting customer needs
  • Business efficiency and cost reduction through management integration
  • Differentiation through regionally rooted services
  • Expansion of online mail order customer base
  • Strengthened customer touchpoints through diverse payment technologies

Threats

  • Intensifying price competition with rivals
  • Market shrinkage risk due to aging population decline
  • Sales decline risk from economic fluctuations
  • Business environment changes from regulatory revisions
  • Share erosion by new entrants
  • Rising logistics costs risk
  • Delays in digital technology and cashless advancements
  • Impacts from external shocks like new infectious diseases
  • Delays in responding to diversifying consumer needs
  • Risks from institutional changes like points rebate systems
  • Store profitability imbalances due to regional disparities
  • Impacts from changes in customer purchasing behavior

Innovations

2023: Launch of proprietary smartphone payment service 'HAPPEY'

Overview
Deploys proprietary payment service integrated into Tsuruha Group official app to improve customer convenience.
Impact
Increases store cashless ratio and promotes customer satisfaction

2025: Management integration with Welcia Holdings

Overview
Makes peer Welcia HD a wholly-owned subsidiary to expand group synergies.
Impact
Forms industry-largest group with sales scale of 2.3 trillion yen

2024: Expansion of electronic money and barcode payments

Overview
Introduces major electronic payment services such as Rakuten Edy, WAON, iD, QUICPay to all group stores.
Impact
Significantly raises cashless payment ratio

2022: Refresh of private brand 'Kurashi Rhythm'

Overview
Unifies daily necessities and pharmaceutical brands, introducing high-value-added products.
Impact
Contributes to improved customer loyalty and profitability

2021: Full store introduction of wireless Wi-Fi service 'TSURUHA Free Wi-Fi'

Overview
Equips stores with Wi-Fi environment to enhance customer convenience.
Impact
Supports increased customer dwell time and sales promotion

Sustainability

  • Promotion of regionally rooted social contribution activities
  • Formulation and implementation of plastic reduction policies
  • Promotion of paperless operations through electronic payments
  • Development of environmentally considerate private brand products
  • Improved customer satisfaction through safe and reliable product provision
  • Employee health management and workplace environment improvement
  • Promotion of local produce utilization to support local production for local consumption
  • Consideration of renewable energy introduction
  • Construction of sustainable logistics systems
  • Implementation of diverse diversity promotion measures
  • Compliance strengthening and legal adherence
  • Expansion of health information provision services to customers