Handsman

Basic Information

Stock Code
7636
Industry
Retail Industry
Category Detail
Specialty Stores & Drugstores
Prefecture
Miyazaki Prefecture
Establishment Year
December 1964
Listing Year
March 2000
Official Website
https://www.handsman.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nafco, DCM Holdings, Super Value, Joyful Honda, Watahan Holdings, Arenza Holdings, Saibishi Denki, Sirius V, Sunday, Korunan Shoji, Komeri, Aso Inter, Arklans

Overview

Handsman is a Kyushu-based DIY home center founded in 1964, offering over 220,000 diverse products and characterized by its high customer service.

Current Situation

Handsman recorded sales of approximately ¥31.2 billion and net profit of approximately ¥1.6 billion for the fiscal year ended June 2020, operating 11 stores in 5 Kyushu prefectures with its base in Miyazaki Prefecture. In 2023, it opened its first store on Honshu in Matsubara City, Osaka Prefecture, expanding its regional footprint. It handles over 220,000 items, exceptionally extensive in the industry, addressing diverse customer needs. Prioritizing customer service, it delivers personalized services via unique inventory management without POS systems. Stores feature spacious two-story layouts to promote customer circulation. It achieves low prices and high margins through direct imports of gardening supplies. Going forward, it aims to enhance customer satisfaction without reducing product variety, centering growth on regional ties and new store openings.

Trivia

Interesting Facts

  • 100-110 employees actively serving at each store.
  • Uses unique system without POS implementation.
  • Maintains overwhelming selection of over 220,000 products.
  • Highly rated 7 AM openings for DIY users.
  • Free breakfast service boosts customer satisfaction.
  • Flexible sales by breaking down multiple items.
  • Expanding from Kyushu base to Kansai region.
  • In-store POPs and fixtures handmade with attention to detail.
  • Rich selection of electronic parts among home centers.
  • Produced numerous theme songs to penetrate brand.

Hidden Connections

  • Strengthened local brand image through self-logo refresh.
  • Links Kyushu and Honshu logistics for efficient supply system.
  • Differentiates from competitors via direct import sourcing of gardening supplies.
  • Deep trust with locals through regional event sponsorships.
  • Established on TSE Standard through multi-store large-scale expansion.
  • Promotes employee-participatory management via employee stock ownership.
  • Stable base with major bank capital as primary shareholders.
  • Early morning bread-coffee service resumed post-COVID, maintaining customer support.

Future Outlook

Growth Drivers

  • Response to diversifying DIY needs
  • New customer acquisition via expansion beyond Kyushu
  • Expanded choices through multi-variety products
  • Differentiation via service and hospitality quality
  • Efficiency from unique inventory system
  • Strong trust with regional communities
  • Maintaining price competitiveness via direct imports
  • Customer flow improvements from store designs
  • Demand capture via early morning market development
  • Strengthened multi-channel sales

Strategic Goals

  • Multiplies store count through nationwide expansion
  • Sales efficiency via digitalization push
  • Expands ratio of sustainable products
  • Brand strengthening via enhanced customer experience
  • Deepens ties with regional communities
  • Productivity boost via employee satisfaction
  • Further optimization of import channels
  • Actively advances environmental load reduction
  • Expands entry into new business fields
  • Market leadership through innovation

Business Segments

Residential Construction Materials Supply

Overview
Stable supply of materials and tools for residential construction and remodeling.
Competitiveness
Regionally rooted supply system with detailed customer support
Customers
  • Local construction companies
  • Remodeling contractors
  • Design offices
  • Carpentry shops
  • Home builders
Products
  • Building materials
  • Insulation materials
  • Waterproof sheets
  • Hardware
  • General tools

Business Electrical Parts and Tools Sales

Overview
Specializes in business materials for electrical equipment.
Competitiveness
Extensive product range and prompt customer response
Customers
  • Electrical contractors
  • Factory maintenance companies
  • Equipment maintenance firms
  • Electronics parts retailers
Products
  • Electrical parts
  • Wiring tools
  • Measuring instruments
  • LED lighting
  • Safety gear

Commercial Facility Supplies Provision

Overview
Provides daily operational materials for commercial facilities, contributing to business efficiency.
Competitiveness
Proposal-based sales enhancing customer satisfaction
Customers
  • Home center operators
  • Retail stores
  • Restaurants
  • Logistics companies
Products
  • Store fixtures
  • Cleaning supplies
  • Disaster preparedness items
  • Store work tools

Gardening and Agricultural Materials Supply

Overview
Handles a wide range of specialized materials for agriculture and gardening industries.
Competitiveness
Low-cost provision through direct import sourcing
Customers
  • Farmers
  • Garden shops
  • Landscaping contractors
  • Park management firms
Products
  • Fertilizers
  • Gardening tools
  • Irrigation supplies
  • Agricultural films
  • Seeds and seedlings

Public Works Support

Overview
Stable supply of materials and supplies for public works.
Competitiveness
Reliability in government procurement
Customers
  • Local governments
  • Public works contractors
  • Civil engineering firms
Products
  • Construction materials
  • Safety supplies
  • Tool sets

Business Cleaning and Hygiene Materials

Overview
Stable provision of business cleaning materials across industries.
Competitiveness
Extensive selection with attentive service
Customers
  • Factories
  • Restaurants
  • Offices
  • Hospitals
Products
  • Detergents
  • Cleaning tools
  • Hygiene supplies

Delivery and Logistics Supplies Provision

Overview
Diverse handling of materials and tools supporting logistics operations.
Competitiveness
Rapid response leveraging regional networks
Customers
  • Logistics firms
  • Transport companies
  • Warehousing operators
Products
  • Packaging materials
  • Work tools
  • Safety supplies

Manufacturing Maintenance Supplies

Overview
Provides supplies needed for manufacturing site maintenance and management.
Competitiveness
Support from specialized technical staff
Customers
  • Machinery manufacturers
  • Manufacturing plants
  • Maintenance companies
Products
  • Maintenance tools
  • Safety protective gear
  • Measuring devices

Battery and Appliance Parts Supply

Overview
Strength in supplying parts and consumables for home appliances.
Competitiveness
Ample inventory management and immediate delivery
Customers
  • Appliance retailers
  • Repair services
  • Retail stores
Products
  • Dry batteries
  • Light bulbs
  • Small appliance parts

Disaster Preparedness and Safety Supplies Sales

Overview
Provides wide range of products in disaster preparedness, contributing to society.
Competitiveness
Regionally focused awareness activities and sales
Customers
  • Corporations
  • Public facilities
  • Schools
Products
  • Emergency evacuation bags
  • Safety protective gear
  • Disaster stockpiles

Store Support Materials Provision

Overview
Provides fixtures and advertising materials needed for store operations.
Competitiveness
Handmade POPs and on-site tailored designs
Customers
  • Retail stores
  • Franchise chains
  • Supermarkets
Products
  • POP advertising
  • Shelf fixtures
  • Signage

Cleaning and Hygiene Supplies Wholesale

Overview
Wholesale diverse business hygiene and cleaning supplies.
Competitiveness
Product range accommodating needs across industries
Customers
  • Commercial facilities
  • Office buildings
  • Hospitals
Products
  • Microfiber cloths
  • Cleaning equipment
  • Hygiene consumables

Competitive Advantage

Strengths

  • Diversity with over 220,000 items
  • High customer service leading to satisfaction
  • Kyushu-centered regional closeness
  • Unique inventory management system
  • Handmade in-store POPs and fixture designs
  • Low procurement costs via direct purchasing
  • Early morning openings and free morning service
  • Multi-prefecture logistics center operations
  • Diverse brands and product lines
  • Multi-channel sales including delivery and online

Competitive Advantages

  • Overwhelmingly larger product count differentiates from competitors
  • Large service staff of over 100 employees
  • Flexible sales via unique non-POS operations
  • Store network expanding in Kyushu and Honshu
  • Actively promotes small-pack sales per customer requests
  • Direct self-sourcing of imported gardening supplies for low prices
  • Store designs emphasizing customer flow
  • Early openings cater to pre-work procurement needs
  • Free bread and coffee service strengthens customer loyalty
  • Increased recognition through diverse TV appearances

Threats

  • Intense competition from major home centers
  • Growth limits of regional closeness model
  • Risks from natural disasters affecting stores and logistics
  • Rising labor costs increasing operations expenses
  • Challenges adapting to changing consumer lifestyles
  • Price competition pressure from new entrants
  • International supply chain instability
  • Risk of efficiency decline from delayed digitalization

Innovations

2023: First Honshu Store Opens in Matsubara, Osaka

Overview
Opened first store outside Kyushu inside Aeon Town in Matsubara City, Osaka Prefecture.
Impact
Contributes to customer base expansion through new market entry.

2023: Resumes Free Bread and Coffee Service

Overview
Restarted morning service, paused during COVID, at all stores.
Impact
Boosts customer satisfaction and store visits.

2022: Enhances Unique Inventory and Sales Management System

Overview
Upgraded IT systems without POS to improve inventory accuracy.
Impact
Reduces stockouts and enhances customer satisfaction through better accuracy.

2021: Refreshes Store Logo

Overview
Renewed logos across all stores to refresh brand image.
Impact
Improves brand recognition and provides fresh impression to customers.

2020: Strengthens Direct Sourcing of Imported Gardening Supplies

Overview
Bolstered direct overseas purchasing and importing by in-house staff.
Impact
Achieves cost compression and low-price sales simultaneously.

Sustainability

  • Reduces excess inventory through extensive item management
  • Considers and promotes reduction of plastic packaging
  • Hosts collaborative events with local communities
  • Expands installation of energy-saving store equipment
  • Promotes recycling and waste reduction activities