Poplar

Basic Information

Stock Code
7601
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Hiroshima Prefecture
Establishment Year
April 1976
Listing Year
February 1999
Official Website
https://www.poplar-cvs.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
CVS Bay Area, Shinozakiya, Seven & i Holdings, Three F, Daiun, Ministop

Overview

Poplar is a mid-sized convenience store chain founded in 1976, centered in Japan's Chugoku region, characterized by regionally focused multi-brand operations and low royalties.

Current Situation

Poplar recorded consolidated sales of approximately 12.4 billion yen and consolidated operating profit of approximately 400 million yen for the fiscal year ended February 2024. With its base in the Chugoku region, it operates in Kanto, Kinki, Shikoku, and Kyushu, featuring an integrated manufacturing and sales system for self-produced bento and prepared foods. Through a capital and business alliance with Lawson, it promotes double-brand stores in the San'in region and excels in special-location stores and those within public facilities. Although negative equity occurred in the fiscal year ended February 2022, recovery is being pursued through withdrawal from unprofitable regions and operational restructuring. It continues to support franchisees via its unique low royalty system and diverse electronic payment options, while actively entering into comprehensive partnership agreements with local communities. Looking ahead, it aims for sustainable growth centered on strengthening ties with Lawson, expanding special-location stores, and business format transformations.

Trivia

Interesting Facts

  • The name 'Poplar' combines the poplar tree with 'popular'.
  • In the early 1980s, it mainly operated night-only 'night shop' format stores.
  • Famous for HOT Bento featuring unique store-cooked rice.
  • Store count in Chugoku region is next to major chains.
  • Had tie-up stores 'Don Chitchi' for a TV program.
  • Strong focus on pharmaceuticals with multiple pharmacy attachments.
  • Low franchise royalties popular with small operators.
  • Double-brand rollout in San'in via Lawson partnership.
  • Nationwide rollout of unique unmanned 'Smart Self' stores.
  • Strength in public facility stores with diverse operating formats.

Hidden Connections

  • Has stock and management alliance with Lawson Group, advancing business collaboration.
  • Entered comprehensive partnership agreements with many Chugoku local governments for disaster supply provision.
  • Collaborative in-store operations with local drugstores (Kirin-do, Shimokawa, Yakuhiguchi).
  • Has absorbed and merged numerous small chains (Three Eight, Kurashi House, etc.) since the 2000s.
  • Adopts both Rakuten Point Card and d Points from Rakuten Group in stores.
  • Operates limited stores in some public transport and Self-Defense Force facilities.
  • Poplar is one of the advanced retail companies actively using self-checkout and AI.
  • Local sports team collab stores embody regional closeness.

Future Outlook

Growth Drivers

  • Brand expansion and efficiency gains through Lawson collaboration
  • Further rollout of special-location stores amid growing needs
  • Operational efficiency via unmanned stores and IT adoption
  • Deepening region-focused services and comprehensive partnerships
  • Enhanced diversification of electronic payments and point services
  • Customer convenience improvement through functional store designs
  • Accelerated multi-faceted expansion via multi-brand strategy
  • Profit improvement from focused withdrawal from new markets
  • Demand for pharmaceuticals and essentials amid regional aging
  • Adoption of labor-saving and automation tech in retail

Strategic Goals

  • Secure leadership in San'in with Lawson-Poplar brands
  • Convert over 30% of all stores to unmanned/self-checkout
  • Double comprehensive partnership agreements to strengthen regional disaster resilience
  • Maintain franchise royalties below 3% for stable business base
  • Achieve 70%+ electronic payment usage rate in convenience stores
  • Reach 50%+ sales ratio from special-location stores
  • Double pharmacy-attached stores compared to 2020
  • Expand eco-friendly energy-saving stores to 80%+ of total
  • Publish sustainability reports and improve transparency
  • Maintain industry-leading franchisee satisfaction via surveys

Business Segments

Franchisee Support

Overview
Franchise support business tailored to diverse store formats.
Competitiveness
Franchisee profit return through low royalties and integrated manufacturing-sales system
Customers
  • Franchise Owners
  • Franchise Stores
Products
  • Product Supply
  • Logistics Services
  • Store Operation Support
  • Royalty Management

Business Food Supply

Overview
Stable supply of business-use products for convenience stores.
Competitiveness
Stable procurement based on in-house manufacturing and direct sales
Customers
  • Restaurant Chains
  • Hospitals and Nursing Facilities
  • School Lunch Providers
  • Facility Stores
Products
  • Bento and Prepared Food Supply
  • Frozen Foods
  • Beverages and Alcohol

Distribution and Logistics Services

Overview
Provides efficient distribution networks and logistics management.
Competitiveness
Directly operated logistics centers and numerous subsidiaries
Customers
  • Subsidiary Stores
  • Partner Company Stores
  • Logistics Providers
Products
  • Product Delivery
  • Inventory Management
  • Logistics Consulting

In-Store Pharmaceutical Sales

Overview
Maintains safe pharmaceutical sales system with pharmacist support.
Competitiveness
Collaboration with combined stores and drugstores
Customers
  • Store Customers
  • Pharmacy Operators
Products
  • Over-the-Counter Drugs
  • Health-Related Products

Points and Payment Services

Overview
Supports customer convenience with diverse payment services.
Competitiveness
Multi-partner alliances with Rakuten and Docomo
Customers
  • Customers
  • Franchisees
Products
  • Common Point Services
  • Electronic Money
  • Prepaid Cards

Competitive Advantage

Strengths

  • Strong regional share in Chugoku area
  • Integrated manufacturing-sales system
  • Franchisee support with low royalties
  • Diverse brand expansion
  • Focus on public and special locations
  • Strategic alliance with Lawson
  • Active introduction of electronic payments
  • Regional contributions via comprehensive agreements
  • Unique bento product 'Popu Bento'
  • Pharmaceutical sales infrastructure
  • Expertise in facility-based stores
  • Diverse capital and business alliances
  • No penalties for mid-term franchise termination
  • Multi-channel sales structure

Competitive Advantages

  • High store density and recognition in Chugoku region
  • Stable product supply via in-house factories and stores
  • Multiple joint business models with Lawson
  • Low franchisee royalties and burdens
  • Extensive experience operating special-location stores
  • Support for diverse electronic payments and point cards
  • Comprehensive regional disaster support system
  • Integration of diverse formats and store brands
  • Adaptable to multiple sales channels
  • Flexible store rollout and scrap & build
  • True regional closeness with in-store pharmaceuticals
  • Advancing unmanned Smart Self stores
  • Partnerships and support for local sports teams

Threats

  • Negative equity at headquarters location
  • Intensifying competition with major convenience chains
  • Logistics cost burdens from new openings
  • Declining consumption due to population decrease and local economic stagnation
  • Reduced footfall from COVID-19 impact
  • Insufficient brand recognition in regional markets
  • Burden of adapting to rapid electronic payment tech changes
  • Performance fluctuation risks from business partners
  • Competition saturation in concentrated store areas
  • Store damage risks from natural disasters
  • Potential operational constraints from stricter regulations

Innovations

2020: Launch of Unmanned 'Smart Self' Stores

Overview
Rolled out compact unmanned stores starting from Hiroshima City to promote labor savings.
Impact
Reduced store operating costs and new format creation

2020: Signed Joint Business Agreement with Lawson

Overview
Accelerated double-brand expansion in San'in region.
Impact
Expanded sales areas and enhanced brand power

2021: Completed Withdrawal from Chubu and Hokuriku Regions

Overview
Implemented withdrawal to prioritize logistics and improve management efficiency.
Impact
Loss reduction and core base strengthening

2023: Management Refresh via Representative Director Change

Overview
Promoting business foundation rebuilding under new leadership.
Impact
Management efficiency and growth strategy enhancement

2022: Diversification of Electronic Money and QR Code Payments

Overview
Introduced multiple payments including Rakuten Pay, PayPay, and d Pay.
Impact
Improved customer convenience and sales growth

2023: Expansion of Regional Comprehensive Partnership Agreements

Overview
Strengthened ties with Hiroshima City and other local governments.
Impact
Enhanced disaster supply provision and regional contributions

Sustainability

  • Strengthening disaster support systems through regional community partnerships
  • Promoting full-store switch to energy-saving LED lighting
  • Labor savings and reduced environmental impact via unmanned self-service stores
  • Supporting local economic revitalization through local produce utilization
  • Enhanced store sales management to reduce food waste