Daiichi

Basic Information

Stock Code
7643
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Hokkaido
Establishment Year
July 1958
Listing Year
April 2000
Official Website
https://www.daiichi-d.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kudo Construction, Interspace, Haro's, Hokuyu Lucky, Daikokuten Bussan, United Super Markets Holdings, ZOA, Fabrica Holdings, TVE, Fulltech, Techno Medica, Retail Partners, Life Corporation, Max Valu Tokai, Axial Retailing, Yaoko, Arcs, Baro Holdings, Belc

Overview

Daiichi is a supermarket chain established in 1958 with its base in Obihiro City, Hokkaido, expanding mainly in Hokkaido with a focus on community integration and its unique self-service format.

Current Situation

Daiichi is headquartered in Obihiro City, Hokkaido, recording sales of approximately 42.5 billion yen and net profit of about 1.1 billion yen in 2020, maintaining a stable business foundation. Its main business is supermarket operations, and as a prominent local capital company in Hokkaido, it has expanded stores to Asahikawa and the Sapporo area. It addresses labor union activities while promoting rationalization and efficiency, strategically placing stores by region to avoid excessive competition. It strengthens management through capital and business alliances with Ito-Yokado, while pursuing differentiation amid intensifying competition with major supermarket groups. In recent years, it has enhanced non-contact IC payment cards and private brand products, focusing on enriching community-oriented services. In 2024, it plans to take over and open food sections from closing Ito-Yokado stores, executing expansion strategies. With about 319 employees, it maintains a solid management stance while pursuing new store openings.

Trivia

Interesting Facts

  • First supermarket in Hokkaido to open with self-service format
  • Ohagi sells 1,000 units per day, a popular product rooted in the region
  • Strengthening local supermarkets through takeover of Ito-Yokado food sections
  • Tacit store placement agreements among 4 local supermarkets form coexistence system
  • Pioneered non-contact IC payment cards via JCB partnership in supermarkets
  • Original No.1 store closed in 2021 after 63 years of history
  • Sole Hokkaido member of the All-Japan Supermarket Association
  • Examples of dissolved Ito-Yokado alliances or emphasis on business partnerships
  • Prominent Hokkaido company with stores in the three major areas: Asahikawa, Sapporo, Obihiro
  • Differentiation through strengthened PB products using local ingredients

Hidden Connections

  • Capital alliance realized through investment from Ito-Yokado, strengthening mutual support in products and logistics
  • In addition to competition among 3 Hokkaido local supermarkets, plays role in competition adjustment with major distributors as regional alliance
  • Collaborated with JCB on non-contact IC payments to develop proprietary membership cards, strengthening regional customer retention
  • Sole member of Hokkaido's largest supermarket association, playing key role in food distribution
  • Founders and affiliates provide management know-how to related companies and supermarkets in other regions, influencing the industry
  • Taking over major food sections amid Ito-Yokado's Hokkaido withdrawal, becoming axis of local supermarket reorganization
  • Competitive foundation lies in joint procurement and logistics optimization through alliances with Hokkaido local group companies
  • Region-limited PB product rollout highly evaluated as outcome of cooperation with Ito-Yokado

Future Outlook

Growth Drivers

  • Food section business from acquired Ito-Yokado stores
  • New community-focused store openings in Hokkaido
  • Strengthened private brand product development
  • Improved customer convenience through IT and payment infrastructure evolution
  • Pursuit of logistics efficiency and regional collaboration models
  • Market expansion in health-oriented foods and prepared dishes
  • Expansion of online sales channels
  • Service diversification to counter population decline
  • Strengthened social trust through collaborations with government and locals
  • Advancement of sustainable environmental measures

Strategic Goals

  • Enter top 5 in Hokkaido supermarket sales
  • Achieve environmental load reduction across all stores
  • PB products to account for over 30% of sales
  • Achieve over 20% EC sales ratio
  • Expand CSR activities in collaboration with local communities
  • 30% improvement in operational efficiency through digitalization
  • Maintain customer satisfaction survey scores above 85%
  • Complete takeover of Ito-Yokado food sections and regional rollout
  • Promote diversity and inclusion for employees
  • Become industry-leading model in food loss reduction

Business Segments

Product Supply for Supermarket Operations

Overview
Provides product supply and joint procurement support to regional supermarkets.
Competitiveness
Strong local sourcing capabilities
Customers
  • Local Retailers
  • Restaurant Chains
  • Department Stores
  • Food Wholesalers
Products
  • Fresh Food Wholesale Supply
  • Prepared Foods
  • PB Product Co-Development
  • Logistics Support Services

Food Processing and Manufacturing Services

Overview
Supports regional industries by providing food processing using in-house facilities.
Competitiveness
High manufacturing quality and flexible responsiveness
Customers
  • Food Manufacturers
  • Prepared Food Processors
  • Local Farmers
Products
  • Prepared Food Manufacturing Outsourcing
  • Frozen Food Processing
  • Local Ingredient Processing

IT and Payment Services

Overview
Improves convenience for affiliated stores through payment and customer management tools.
Competitiveness
System design tailored to regional characteristics
Customers
  • Affiliated Supermarkets
  • Local Shops
  • Lifestyle-Related Businesses
Products
  • Non-Contact IC Payment System
  • Membership Card Development
  • Points Management System

Logistics and Delivery Services

Overview
Maintains product freshness and safety through efficient delivery networks.
Competitiveness
Community-focused delivery network
Customers
  • Own Stores
  • Local Retailers
  • Food Service Industry
Products
  • Joint Delivery
  • Seasonal Product Delivery
  • Temperature-Controlled Logistics

Store Operation Support Services

Overview
Consulting services for efficient store operations.
Competitiveness
Expertise in local markets
Customers
  • New Store Entrants
  • Local Retailers
  • Small Food Stores
Products
  • Store Planning
  • Promotion Support
  • Staff Training

Competitive Advantage

Strengths

  • Strong community-based customer foundation
  • High brand recognition within Hokkaido
  • Efficient operations via self-service format
  • Capital and business alliance with Ito-Yokado
  • Risk diversification through multi-regional expansion
  • Wide product lineup
  • Differentiation through unique prepared foods and ohagi products
  • Introduction of diverse payment methods
  • Solid financial base
  • Effective logistics system

Competitive Advantages

  • Presence as a mid-sized food supermarket in Hokkaido
  • Pioneered self-service format in Hokkaido
  • Gained regional support through abundant local products
  • Avoids excessive competition by focusing store expansion on specific trade areas
  • Strengthens product power through capital alliance with Ito-Yokado
  • Promotes joint procurement with local companies
  • High-quality in-house prepared foods and diverse product composition
  • Improved customer convenience with advanced non-contact IC payment cards
  • Secures funding for new stores through prudent financial management
  • Building diverse sales channels including online retail

Threats

  • Declining consumer numbers due to population decrease in Hokkaido
  • Intensifying competition with major distribution groups
  • Profit margin pressure from food price competition
  • Rising labor costs due to labor shortages
  • Strengthened food hygiene and safety regulations
  • Risk of logistics disruptions from natural disasters
  • Delays in adopting new technologies and business models
  • Potential over-expansion with regional competitors
  • Need to adapt to changing consumer preferences
  • Increasing raw material costs due to inflation

Innovations

2023: Expansion of Non-Contact IC Card Payment System

Overview
Expanded QUICPay-affiliated cards in partnership with JCB to improve convenience for membership customers.
Impact
Contributes to higher customer satisfaction and repeat visits.

2024: Takeover of Ito-Yokado Food Sections

Overview
Taking over food sections from planned Ito-Yokado closures for new store openings.
Impact
Plans to enter new markets and expand sales.

2022: Advanced In-House Prepared Food Production Line

Overview
Updated cooking equipment to improve quality control and productivity.
Impact
Improved product quality and 20% productivity increase.

2023: EC Platform Development

Overview
Launched EC site enabling online sales of supermarket products.
Impact
Acquires new customer segments and diversifies sales channels.

2021: Introduction of Energy-Saving Store Lighting

Overview
Introduced LED lighting and energy-saving equipment in multiple stores to reduce energy usage.
Impact
Annual electricity cost reduction of about 10% and lower environmental impact.

Sustainability

  • Promotion of food waste reduction programs
  • Expansion of environmentally friendly packaging
  • Promotion of local production and consumption of regional agricultural products
  • Introduction of energy-saving equipment
  • Collaboration with local communities on environmental education