Kusuri no Aoki Holdings

Basic Information

Stock Code: 3549
Industry: Retail
Category Detail: Specialty Stores & Drugstores
Prefecture: Ishikawa Prefecture
Establishment Year: July 1999
Listing Year: November 2016
Official Website: https://www.kusuri-aoki-hd.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Kawachi Drug, MatsukiyoCocokara & Company, Welcia Holdings, Create SD Holdings, Cosmos Pharmaceutical, Tsuruha Holdings, Sugi HD, Yakuo-do Holdings, Genky, Sundrug

Overview

Kusuri no Aoki Holdings is a mid-sized Aeon Group company founded in 1869, operating drugstores and food supermarkets centered in the Hokuriku region with nationwide expansion.

Current Situation

Kusuri no Aoki Holdings recorded consolidated net sales of approximately 436.8 billion yen, operating profit of approximately 18.6 billion yen, and net profit of approximately 12.3 billion yen for the fiscal year ending May 2024, maintaining solid performance. Centered in the Hokuriku region, it operates drugstore chains in the Kanto, Chubu, Kinki, and Tohoku areas, steadily increasing store numbers through a dominant area strategy and aiming to reach 1,000 stores nationwide by 2025. In recent years, it has actively expanded its food supermarket business, strengthening the food division by acquiring multiple mid-sized food supermarkets as subsidiaries. It is also focusing on enhancing customer convenience with electronic money payments and enriched membership cards. Leveraging capital and business alliances as part of the Aeon Group to the fullest, it counters price competition from rivals and improves delivery efficiency. In the medium to long term, it pursues a growth strategy of community-based store expansion and promotion of hybrid stores combining food and pharmacies, while advancing environmentally considerate store operations and regional contribution activities as social responsibilities. Moving forward, it aims to bolster its revenue base through M&A-driven business expansion and strengthened digital responses.

Trivia

Interesting Facts

Originated from a long-established pharmacy founded in 1869.
Rapid store increase via dominant strategy, surpassing 1,000 stores in 2025.
Largest drugstore chain in the three Hokuriku prefectures.
Belongs to Aeon Group, enjoying stable capital support.
Uniquely offers prepaid membership card 'Aoca'.
Acquired multiple mid-sized food supermarkets to advance food reinforcement.
Steadily expanding share in the national drugstore industry.
Actively deploying pharmacies in hybrid store formats.
High convenience with electronic money payments and diverse points systems.
Differentiating from competitors through community focus and food reinforcement.
Aggressively entering new regions in Tohoku and Kansai via acquisitions.
Strong family business character led by founding family.
Uses 'Aoki Supermarket' brand for acquired food supermarkets.
Significantly contributes to regional employment creation.
Headquartered in Hakusan City, Ishikawa Prefecture, while achieving nationwide expansion.

Hidden Connections

Belongs to Aeon Group and leverages joint purchasing power to enhance competitiveness.
Advancing fusion of drugstores and food retail through multiple supermarket acquisitions.
Installed Aeon Bank ATMs in some Hokushinetsu region stores to enhance convenience.
Achieves differentiation from majors through community-based store deployment.
Actively integrating multiple supermarket subsidiaries via M&A.
Membership card 'Aoca' is rechargeable and compatible with My Number Point program.
Improving customer convenience through widespread electronic payment services.
Recognized as a pioneer in drugstores in the Hokuriku region.

Future Outlook

Growth Drivers

Efficient store expansion based on dominant strategy.
Competitive strengthening through hybrid stores with food supermarkets.
Customer retention via digital payments and points services.
Increase in loyal customers through community-based services.
New market development and diversification via M&A.
Revenue diversification through pharmacy business expansion.
Brand value enhancement via sustainability-focused environmental measures.
Expanded utilization of synergies with Aeon Group.
Reinforcement of health and caregiving products for aging society.
Sales channel expansion fusing online and offline.
Customized product deployment adapted to regional needs.
Operational efficiency improvement through store IT infrastructure enhancement.

Strategic Goals

Establishment of 1,000 nationwide stores with optimal placement.
Expansion of food supermarket business sales ratio.
Achievement of sustainable environmental management and CO2 reduction targets.
Improved customer satisfaction through digital technology utilization.
Strengthened CSR activities centered on coexistence with local communities.
Expanded reach to new customer segments and brand diversification.
Domestic market share expansion and overseas deployment consideration.
Development and普及 of new health and caregiving services.
Logistics and operations efficiency revolution via IoT and AI.
Business synergy promotion through group company collaboration.

Business Segments

Store Operation Support

Overview

Provides various services to support efficient operations of group stores.

Competitiveness

Support system leveraging regional closeness and on-site know-how

Customers

Kusuri no Aoki stores
Food supermarket subsidiaries
Related pharmacies

Products

POS systems
Logistics support
Store development consulting

Pharmaceutical Procurement & Distribution

Overview

Handles nationwide pharmaceutical distribution while maintaining high-quality supply systems.

Competitiveness

Established logistics network and strengths from capital alliances

Customers

Drugstore companies
Pharmacies
Hospitals & care facilities

Products

Over-the-counter medicines
Prescription medicines
Supplements

Food Procurement & Sales

Overview

Supports stable supply to food supermarkets operated by the group.

Competitiveness

Procurement capabilities rooted in local areas

Customers

Mid-sized food supermarkets
Local retailers
Dining chains

Products

Fresh fish
Prepared foods
Processed foods

Digital Marketing

Overview

Business division supporting advanced direct marketing.

Competitiveness

Analytical capabilities linked to a vast customer base

Customers

Kusuri no Aoki
Group subsidiaries
Partner retailers

Products

Customer data analysis
Online promotion tools
Membership card management

Pharmacy Services

Overview

Nationwide deployment of prescription-based drug provision and related services.

Competitiveness

Pharmacy network expanding with store growth

Customers

Kusuri no Aoki pharmacy stores
Local medical institutions
Elderly facilities

Products

Prescription dispensing
Medication guidance
Home medical care support

Retail Store Planning & Development

Overview

Provides planning and operational know-how to accelerate new store openings.

Competitiveness

Proven track record of successful openings in the Hokuriku region

Customers

New store opening companies
Facility development companies
Commercial facility operators

Products

Property acquisition support
Store design
Opening support services

Competitive Advantage

Strengths

Overwhelming market share in the Hokuriku region
Capital support system from the Aeon Group
Hybrid store strategy with food supermarkets
Comprehensive payment methods and membership services
Dominant effects from extensive store network
Well-balanced product lineup
Robust pharmacy network
Community-based service deployment
Stable financial foundation
Diversified business portfolio
Growth strategy utilizing M&A
Efficient operations through IT utilization
Nationwide logistics network
Aggressive reinforcement of food sector
Customer base across wide age groups

Competitive Advantages

Dominant strategy with higher store density than competitors
Joint procurement and development possible through Aeon Group collaboration
Synergistic effects from combined drugstore and food supermarket operations
High customer trust and loyalty from community-based management
Improved customer convenience with diverse payment methods
Rapid market expansion via multi-store rollout and M&A
Strengthened ties with medical institutions through enriched pharmacy services
Introduction of efficient management systems using IT technology
Progress in environmentally considerate store operations considering sustainability
Differentiation from competitors through food sector reinforcement
Market risk dispersion via broad regional expansion
New investments enabled by solid financial structure and funding capabilities
Maintained rapid product supply system and comprehensive logistics network
Focus on personnel development to sustain high labor productivity
High brand recognition with stable customer base

Threats

Intensifying price competition due to fierce rivalry
Market contraction from population decline and aging society
Competition from emerging online drugstores
Increasing sales restrictions on medicines due to stricter regulations
Risk of fluctuating procurement costs from exchange rate changes
Risk of product issues such as food safety problems
Potential difficulty responding to diverse customer needs by region
Rising store operation costs from labor shortages
Impact of natural disasters on logistics and store operations
Consumption decline from social risks like new infectious diseases
Organizational integration risks from M&A
Increased burden from enhanced audits and compliance measures

Innovations

2024: Expansion of supermarket business in Kagawa Prefecture

Overview: Acquired 7 Moomin supermarkets and made first entry into Kagawa Prefecture.
Impact: Expansion of food retail business through new market development

2024: Kansai region expansion via Happy Terada acquisition

Overview: Acquired 9 food supermarkets in Shiga and Kyoto prefectures to strengthen regional presence.
Impact: Enhanced presence in the Kansai market

2023: Full-store reinforcement of digital payment services

Overview: Introduced diverse electronic money payments including PayPay and LINE Pay across all stores.
Impact: Contributes to improved customer convenience and purchase promotion

2022: Acquisition of multiple supermarkets in Tohoku

Overview: Absorbed and merged multiple stores including Hyakuni-san'ya and Homus Kirinya to strengthen business foundation.
Impact: Accelerates community-based expansion in Tohoku region

2021: Renewal of prepaid membership card 'Aoca'

Overview: Upgraded conventional points card to rechargeable prepaid card for improved customer convenience.
Impact: Customer retention effects and faster checkout

2020: Acquisition of supermarket 'Narux'

Overview: Strategically subsidirized local food supermarket and advancing shift to food-reinforced model.
Impact: Contributes to product competitiveness and sales channel expansion

2020: Participation in My Number Point program

Overview: Participated in Ministry of Internal Affairs and Communications' cashless promotion to support store payments.
Impact: Customer base expansion through cashless対応

2020: Introduction of electronic money payment services

Overview: Introduced multiple electronic monies including Rakuten Edy and iD to improve convenience.
Impact: Addresses diverse payment needs and enhances customer satisfaction

Sustainability

LED lighting and energy-saving equipment in stores
Promotion of waste plastic reduction
Continuous participation in local cleanup activities
Store operations measures to reduce food loss
Eco-bag promotion campaigns
CO2 reduction through promotion of transportation IC card usage
Strengthened waste sorting for recycling promotion
Formulation of environmentally considerate procurement policies
Employee environmental awareness training
Contributions to building a sustainable society