Three-F

Basic Information

Stock Code
7544
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Kanagawa Prefecture
Establishment Year
February 1981
Listing Year
July 1997
Official Website
https://www.three-f.co.jp//
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
C.V.S. Bay Area, Seven & i Holdings, Daiken, Carmate, Poplar, Ministop

Overview

Three-F is a Kanagawa-based retail company founded in 1981, operating a convenience store chain primarily through a double-brand strategy in a joint venture with Lawson.

Current Situation

Three-F reported consolidated net sales of approximately 13.857 billion yen and operating profit of 914 million yen for the fiscal year ended February 2024, maintaining its performance. Its core business is operating Lawson Three-F through the joint venture L.T.F., which accounts for the majority of sales. By significantly consolidating store brands, it has focused management resources on Tokyo and Kanagawa Prefecture to enhance efficiency. In the past, it operated numerous proprietary brand stores, but currently manages only three directly operated 'gooz' brand stores. While focusing on electronic payment introductions and proprietary product development, it has closed underperforming stores and reduced headcount to streamline operations. Moving forward, it aims to strengthen collaboration with Lawson and bolster its revenue base through community-focused store expansion.

Trivia

Interesting Facts

  • Company spun off and became independent from Fuji Supermarket, founded in 1979.
  • Ended operations of 'Three-F' standalone brand stores in 2018.
  • Established joint venture with Lawson to advance double-brand rollout.
  • Maintains core base centered on Kanagawa Prefecture rather than nationwide expansion.
  • Invests an average of 30 million yen per store in renovations.
  • 'gooz' is a new convenience store format emphasizing in-store manufacturing.
  • T-Point service introduced at all stores.
  • Electronic payment services support Suica, Rakuten Edy, iD, and more.
  • Previously had area franchise operations in the Shikoku region.
  • Early adopter of new POS systems and multimedia terminals using IT.

Hidden Connections

  • Shares management resources with Lawson joint venture to strengthen competitiveness.
  • Operates 'Three-F Academy' education system for franchisees.
  • Participated in Enet establishment for ATM business and financial service integration.
  • 'Gooz' brand product supply collaborates with community stores and others.
  • Acquired operating rights for some 'Pumpkin' brand stores.
  • Introduced 'Smart Pit' for bill payment services without receipts.
  • Collaborates with Ministop on frozen dessert development and joint logistics.
  • Strengthened community ties through Lawson Kochi, a regionally limited Lawson.

Future Outlook

Growth Drivers

  • Brand strengthening and customer base expansion through Lawson joint venture.
  • Acceleration of store operation efficiency and new 'gooz' direct brand rollout.
  • Customer convenience improvement via electronic payments and IT utilization.
  • Brand image enhancement through environmental initiatives and community-oriented management.
  • Improved product freshness and supply efficiency via logistics system strengthening.

Strategic Goals

  • Further expansion and deepening of Lawson joint venture business.
  • Diversification and strengthening of community-oriented services.
  • Standardization of sustainability-focused store operations.
  • Efficiency in product development and expansion of proprietary products.
  • Marketing optimization through customer data utilization.

Business Segments

Convenience Store Operation Support

Overview
Handles operation management and product supply for franchise stores.
Competitiveness
Enhanced product supply capabilities through Lawson collaboration
Customers
  • Franchise stores
  • Local retailers
Products
  • Store development support
  • Product procurement and supply
  • Sales promotion support

Product Development and Manufacturing Outsourcing

Overview
B2B services undertaking planning and manufacturing of proprietary products.
Competitiveness
Superior quality control and product differentiation
Customers
  • Joint venture L.T.F.
  • Regional distribution centers
Products
  • Chilled bentos
  • Prepared foods
  • Freshly baked bread

Logistics and Delivery Services

Overview
Builds efficient logistics network for product supply.
Competitiveness
High-frequency delivery maintains freshness
Customers
  • Franchise stores
  • Joint venture operated stores
Products
  • Chilled food delivery
  • Shared distribution center services
  • Same-day ordering and delivery

Electronic Payment Agency Services

Overview
Provides latest payment services to stores to improve convenience.
Competitiveness
Smooth integration with major electronic payments
Customers
  • Convenience stores
  • Client companies
Products
  • Support for introducing various electronic money
  • Credit card payment agency

Training and Education Services

Overview
Provides specialized education and training services to franchisees.
Competitiveness
Instructional expertise based on years of operational experience
Customers
  • Franchise store employees
  • Store staff
Products
  • Three-F Academy training programs
  • Product knowledge training
  • Customer service skill enhancement courses

Joint Procurement and Sourcing

Overview
System aimed at reducing procurement costs and ensuring stable supply.
Competitiveness
Strong partnership network
Customers
  • Three-F store network
  • L.T.F. operated stores
Products
  • Ingredient purchasing
  • Packaging material procurement
  • Joint purchasing operations

Competitive Advantage

Strengths

  • Strong store network based in Kanagawa Prefecture
  • Product strength from joint venture operations with Lawson
  • Proprietary product development capabilities like chilled bentos
  • Efficient logistics and delivery system
  • Diverse electronic payment compatibility
  • Expertise in community-oriented management
  • ISO 14001 certification for environmental management
  • Cost reductions through brand consolidation
  • Comprehensive store staff training programs

Competitive Advantages

  • Differentiation through double-brand rollout with Lawson Group
  • High-quality products like chilled foods and freshly baked bread
  • Maintains freshness via efficient shared distribution centers and same-day delivery
  • Improved customer convenience by promoting electronic money and credit card acceptance
  • Addresses niche market needs with proprietary 'gooz' brand
  • Enhanced profitability through workforce optimization and store closures
  • Uniform service quality via franchisee training programs
  • Advancement of sustainability-focused environmental strategies

Threats

  • Intense competition from major convenience store chains
  • Impact of population decline and market contraction
  • Growth slowdown risk from regional-limited expansion
  • Challenges in adapting to diversifying consumer purchasing behaviors
  • Raw material price fluctuation risks
  • Delays in responding to emerging technologies
  • Risk of franchisee attrition
  • Increased operating costs from stricter regulations

Innovations

2024: Full Renovation of Lawson Three-F Stores

Overview
Implemented renovations costing about 30 million yen per store across all locations to strengthen branding.
Impact
Contributes to sales growth by refreshing store image

2021: Overhaul of Gooz Product Supply System

Overview
Promoted efficiency in product supply network by introducing Poplar system.
Impact
Reduced logistics costs and improved supply stability

2020: Opening of Gooz JR Yokohama Tower Store Using Satellite Model

Overview
Improved operational efficiency with product supply from central store with kitchen facilities.
Impact
Realizes pioneering store operations in diverse locations

2020: Full Store Introduction of Credit Card Payments

Overview
Completed rollout of credit cards to all stores, progressively since 2016.
Impact
Significantly enhances customer convenience

2023: Expansion of Proprietary Products at L.T.F.

Overview
Developed over 30 original items including chilled bentos and sweets.
Impact
Customer retention effect through differentiation

Sustainability

  • Continuous acquisition and operation of ISO 14001 environmental certification
  • CO2 emissions reduction through logistics efficiency
  • Food waste reduction activities at community-oriented stores
  • Promotion of environmental awareness activities for local communities
  • Paperless promotion through electronic payment adoption