Retail Partners

Basic Information

Stock Code
8167
Industry
Retail Industry
Category Detail
General Merchandise & Food Retailers
Prefecture
Yamaguchi Prefecture
Establishment Year
March 1954
Listing Year
October 1984
Official Website
http://retailpartners.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Halows, Daikokuten Bussan, United Super Markets Holdings, Alenza HD, Life Corporation, MaxValu Tokai, Axial Retailing, Yaoko, Arks, Baro Holdings, Belc

Overview

Retail Partners is a holding company in the retail industry headquartered in Hofu City, Yamaguchi Prefecture, founded in 1954. It operates a stable, regionally focused store network centered on supermarkets primarily in the Chugoku and Kyushu regions.

Current Situation

Retail Partners recorded consolidated net sales of approximately 241.8 billion yen, operating profit of about 8.4 billion yen, and net profit of about 4.9 billion yen for the fiscal year ended February 2021, operating 260 stores mainly in Yamaguchi Prefecture and the Chugoku and Kyushu regions. It encompasses three major group subsidiaries: Marukyu, Marumiya Store, and Marukyo, promoting customer-focused management rooted in the local community. In 2018, it formed the New Japan Supermarket Alliance through capital and business tie-ups with Arks and Baro Holdings to strengthen competitiveness. It is advancing the development of a management structure with sustainability and regional revitalization in mind, and transitioned to the Tokyo Stock Exchange First Section in 2020. Moving forward, it aims to establish superiority in the local market through new initiatives such as IT implementation and small-store rollout with facial recognition payments.

Trivia

Interesting Facts

  • One of the few regional holding company structures in the supermarket industry.
  • Inherits the tradition of 'Maru' in the names of its three major group subsidiaries.
  • Achieved expansion of commercial spheres in Chugoku and Kyushu through 2015 management integration.
  • Formed the New Japan Supermarket Alliance with Arks and Baro Holdings.
  • Actively investing in IT areas such as facial recognition payment small stores.
  • Pioneering initiative with wholly-owned subsidiary Marukyo launching online supermarket.
  • Maintaining stable growth as a regional food supermarket.
  • Supported by regional consumers with wide assortment of food and daily goods.
  • Deeply rooted regionally focused corporate culture.
  • Strength in freshness management with proprietary logistics network.
  • Continuing management emphasizing collaboration with local economy.
  • Adjusts product assortments to regional needs per store.
  • Relatively lean workforce with high sales efficiency.
  • Notable collaboration with regional companies in shareholder composition.
  • Focusing on promoting sustainable business model.

Hidden Connections

  • Jointly operates the New Japan Supermarket Alliance through capital alliances with Arks and Baro Holdings.
  • All three subsidiaries' names include 'Maru,' sharing regional brand image.
  • Covers wide area from Kyushu to Chugoku, promoting inter-regional exchange.
  • Shareholder Yamae Kuno is a local seafood processor with deep producer ties.
  • Unique management form maintaining independent operations per region under holding company oversight.
  • Close and efficient collaboration in product procurement and promotions among regions and subsidiaries.
  • High store count relative to employee numbers, building efficient store operations.
  • Active information exchange with local companies in capital and business alliances.

Future Outlook

Growth Drivers

  • Strengthening and expansion of regionally focused store network
  • Joint purchasing and logistics efficiency through capital and business alliances
  • Store operation efficiency through IT and AI adoption
  • Expansion of EC business and strengthening of online supermarkets
  • Service development for aging society
  • Strengthening local support through local production for local consumption
  • Sustainability with reduced environmental impact
  • Deepening collaboration in New Japan Supermarket Alliance
  • Product development responsive to regional consumer needs
  • Competitiveness improvement through DX
  • Response to diversifying consumer preferences
  • Thorough safe and secure food supply

Strategic Goals

  • Market share expansion in Chugoku and Kyushu regions
  • Completion of DX foundation and promotion of store automation
  • Stricter sustainability standards
  • Establishment of position in online supermarket market
  • Maximization of synergies through New Japan Supermarket Alliance
  • Enhanced value creation in collaboration with regional society
  • Optimization of diverse sales channels
  • Further improvement in employee satisfaction
  • Full rollout of environmentally responsive stores
  • Strengthening of regional brand value

Business Segments

Wholesale Business

Overview
Wholesales food and daily goods in large quantities to retailers and the food service industry.
Competitiveness
Achieves stable supply through wide-area network
Customers
  • Retailers
  • Food Service Industry
  • Specialty Stores
  • Hospitality Industry
  • School Lunch Providers
  • Welfare Facilities
Products
  • Bulk Food Wholesale
  • Fresh Foods
  • Processed Foods
  • Daily Sundries

Logistics and Delivery Services

Overview
Provides logistics and delivery services to stores and retailers.
Competitiveness
Strength in freshness management through regional focus
Customers
  • Group Stores
  • Other Retailers
  • Regional Logistics Companies
Products
  • Store Delivery
  • Joint Logistics Services
  • Refrigerated and Frozen Logistics

IT Systems and Payment Services

Overview
Supplies IT and payment services to improve store operation efficiency.
Competitiveness
Operational support leveraging advanced technology
Customers
  • Group Stores
  • Partner Retailers
  • Capital-Affiliated Companies
Products
  • POS Systems
  • Facial Recognition Payments
  • Online Supermarket Platform

Competitive Advantage

Strengths

  • Strong regionally focused store network
  • Diversified operations through multiple major subsidiaries
  • Enhanced collaboration through capital and business alliances
  • Stable revenue base
  • Product offerings matched to regional characteristics
  • Active IT adoption and payment innovation
  • High customer loyalty
  • Utilization of diverse sales channels
  • Reliable logistics and delivery system
  • Rich regional brands

Competitive Advantages

  • Regionally focused strategy leveraging base in Chugoku and Kyushu
  • Business collaboration of three major supermarkets through management integration
  • Resource sharing through capital and business tie-ups with Arks and Baro
  • Differentiation through introduction of new technologies like facial recognition payments
  • Wide product lineup and specialty store operation capabilities
  • Maintaining stable store operations and customer networks
  • Freshness preservation and cost reduction through logistics optimization
  • Group synergy creation through holding company structure
  • Flexibility in service rollout tailored to regional needs
  • Resilient organization through mutual support within the group

Threats

  • Shrinkage of customer base due to regional population decline
  • Intensifying price competition with major national chains
  • Demand fluctuations due to infectious diseases like COVID-19
  • Rising labor costs due to labor shortages
  • Risks in responding to food safety issues
  • Impact of natural disasters on store operations
  • Rising logistics costs
  • Challenges in adapting to rapid changes in information technology

Innovations

2020: Transition to Tokyo Stock Exchange First Section

Overview
Implemented market redesignation to enhance market trust and improve fundraising capabilities.
Impact
Contributes to strengthened capital and improved corporate value

2023: Introduction of Facial Recognition Payment System

Overview
Began operation of facial recognition payments in stores to improve convenience in small stores.
Impact
Contributes to improved customer convenience and store efficiency

2021: Marukyo Launches Online Supermarket

Overview
Wholly-owned subsidiary Marukyo started online supermarket business to expand sales channels.
Impact
Strengthens response to EC market and acquires new customers

2022: Strengthening of New Japan Supermarket Alliance

Overview
Expanded alliances with Arks and Baro to promote joint purchasing and logistics efficiency.
Impact
Achieves cost reductions and enhanced competitiveness

2024: Advancement of IT Infrastructure

Overview
Upgrading POS systems and strengthening data integration to sophisticate sales strategies.
Impact
Contributes to improved sales efficiency and advanced customer analysis

Sustainability

  • Promotion of local production for local consumption through active use of regional products
  • Introduction of food waste reduction programs
  • Promotion of energy-saving equipment in stores
  • Participation in regional cleanup and environmental protection activities
  • Thorough provision of safe and secure products
  • Workstyle reforms for employees to improve environment
  • Packaging reforms aimed at reducing plastics
  • Introduction of sustainable procurement standards
  • Eco-awareness activities for customers
  • Active participation in community events
  • Promotion of renewable energy utilization
  • Creation and maintenance of regional employment