Okuwa

Basic Information

Stock Code
8217
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Wakayama Prefecture
Establishment Year
February 1969
Listing Year
October 1987
Official Website
https://www.okuwa.net/
TSE Information
TSE Information
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Other Companies
Sun Ae, Halows, Daikokuten Bussan, United Super Markets Holdings, Asahi, Fuji Denki Kogyo, Nagイレーベン, Retail Partners, Chiyoda, Life Corporation, Max Valu Tokai, Mr. Max Holdings, Axial Retailing, Heiwado, Yaoko, Daiseki, Arcs, Baro Holdings, Belc

Overview

Okuwa was founded in 1969 and operates supermarkets mainly in Wakayama Prefecture and the Kinki and Tokai regions, positioning itself as a regional retail leader with strengths in manufacturing and logistics.

Current Situation

In the fiscal year ending February 2021, Okuwa recorded consolidated sales of approximately 279.2 billion yen, operating profit of 7.8 billion yen, and net profit of approximately 3.8 billion yen. Centered on Wakayama Prefecture, it operates over 133 stores in the Kinki and Tokai areas, forming a strong dominant presence. It offers original private brands (PB) and joint PBs to meet diverse customer needs, while introducing advanced services such as online supermarkets, self-checkouts, and electronic money payments. The company is advancing group reorganization through subsidiary mergers to improve efficiency and strengthen its food manufacturing and logistics functions. It also focuses on environmental and community contributions, enhancing competitiveness through regional comprehensive supermarket strategies and multi-format expansion. Looking ahead, it plans investments in new store openings in the Tokai region and growth areas like health and convenience to achieve stable growth.

Trivia

Interesting Facts

  • 60% of Wakayama Prefecture residents own an Okuwa card
  • First supermarket in western Japan to introduce self-checkouts
  • Differentiated expansion by region with diverse store brands
  • Online supermarket assortment is among the largest in the industry
  • Implemented management efficiency improvements via subsidiary mergers
  • Early adopter of 24-hour stores
  • Proactively promotes pioneering electronic money payments
  • Possesses unique know-how in regionally focused store operations
  • Stores span from Kansai to Tokai regions
  • Enhances regional uniqueness through extensive PB rollout
  • Strengthens customer touchpoints via diverse channels
  • Historically grown from Kinki as a major regional player
  • Maintains in-house integrated system from food manufacturing to sales
  • High penetration of electronic payments and points services
  • Actively supports local culture and sports

Hidden Connections

  • Long-standing deep relationship with Wakayama Broadcasting for media exposure
  • Develops joint PBs as part of Nichiryu Group
  • Strengthens product rollout through business alliance with major drugstore
  • Inherited Meitetsu Group's store network to enter Tokai region
  • Aggressively introduces advanced technologies like online supermarkets
  • Challenges modernization while maintaining founding family management style
  • Diverse store brands tailored to regional needs
  • Pioneer in regionally integrated comprehensive supermarkets

Future Outlook

Growth Drivers

  • New store openings and dominant strengthening in Kinki and Tokai areas
  • Online supermarket usage expansion and convenience improvements
  • Private brand product expansion and quality enhancements
  • Customer convenience reinforcement via electronic payments and IT
  • Growth expansion of meal delivery services for aging society
  • Strengthened sustainability-focused management strategy
  • Advancement of multi-format store rollout based on regional needs
  • Cost competitiveness through logistics efficiency and manufacturing strengthening
  • Leveraging synergies with Japan Retail Industry Group
  • Expanded handling of health-oriented products
  • Sophisticated sales strategies via AI and data analysis
  • Deepening of customer loyalty programs

Strategic Goals

  • Establish position as No.1 regional supermarket
  • Achieve over 20% sales ratio from online supermarkets
  • Achieve 30% sales ratio from private brands
  • Realize sustainable management with 30% environmental load reduction
  • Prepare for nationwide rollout of elderly meal delivery services
  • Over 90% electronic money and cashless ratio
  • Complete digitalization across all business zones
  • Expand regional social contribution programs
  • Effective store renewals and new format creation
  • Maximize management efficiency and profitability

Business Segments

Food Manufacturing and Logistics Provision

Overview
Provides food manufacturing and logistics services utilizing in-house factories and distribution centers.
Competitiveness
Integrated stable supply system from manufacturing to logistics
Customers
  • Retail Chains
  • Restaurants
  • Wholesale Distributors
  • Food Service Companies
Products
  • Deli Manufacturing and Supply
  • Processed Food Wholesale
  • Logistics Services
  • Distribution Center Management

Distribution Information System Provision

Overview
Operates advanced store and sales management systems to support business efficiency.
Competitiveness
Advanced sales analysis and operational efficiency technology
Customers
  • Group Stores
  • Retailers
  • Logistics Companies
Products
  • POS Systems
  • Inventory Management Systems
  • Purchasing Data Analysis

Regional Store Operation Support

Overview
Provides consulting for store expansion and sales promotion leveraging regional characteristics.
Competitiveness
Flexible store support based on deep regional understanding
Customers
  • Small and Medium Retailers
  • Local Chains
  • Regional Businesses
Products
  • Store Operation Consulting
  • Sales Promotion Planning
  • PR Support

Electronic Payment Services

Overview
Supports electronic payment environment setup and points service operations.
Competitiveness
Diversity and penetration of payment services
Customers
  • Stores
  • Customers
Products
  • Electronic Money Payment Introduction Support
  • Points Program Management

Online Supermarket Business Support

Overview
Builds online supermarket order acceptance and delivery systems to improve customer convenience.
Competitiveness
Industry-leading product assortment and delivery efficiency
Customers
  • Online Shopping Customers
  • Logistics Partners
Products
  • Online Order Systems
  • Delivery Services

Private Brand Product Development

Overview
Strengthens competitiveness through quality-focused PB development.
Competitiveness
Development capabilities through Nichiryu Group collaboration
Customers
  • Retail Chains
  • Consumers
Products
  • PB Foods
  • PB Daily Goods

Competitive Advantage

Strengths

  • Regional dominant strategy
  • Customer coverage through multi-format expansion
  • Strengths in in-house manufacturing and logistics
  • Advanced cashless payment introduction
  • Broad private brand rollout
  • Top-tier online supermarket scale in the industry
  • High brand recognition
  • Strong group collaboration
  • High customer loyalty
  • Flexible response to new market development

Competitive Advantages

  • High market share through Wakayama-centered regional management
  • Customer base expansion via diverse store brands
  • Stable supply supported by in-house deli factories and logistics centers
  • Convenience enhancements like electronic payments and self-checkouts
  • Product differentiation via joint PBs with Nichiryu Group
  • Rich assortment and convenience in online supermarkets
  • Speed in new formats and services rollout
  • Store strategies rooted in local needs
  • Broad product category expansion
  • Improved management efficiency through group reorganization

Threats

  • Intensifying competition with major chains
  • Risks from regional economic fluctuations
  • Market shrinkage due to population decline and aging
  • Rising logistics costs
  • Risk of lagging in technology and service innovations
  • Sudden risks like natural disasters
  • Delays in responding to changes in consumer purchasing behavior
  • Cost increases from stricter regulations
  • Price competition risks from heightened rivalry
  • Expansion of online retail competitors
  • Labor shortages
  • Increasing environmental compliance investments

Innovations

2024: Contactless Payment Usage Begins

Overview
Introduced contactless payment services at all stores to improve customer convenience.
Impact
Improved payment speed and customer satisfaction

2022: Absorbs and Merges Subsidiary Hiramatsu

Overview
Absorbed and merged Hiramatsu to promote group management efficiency.
Impact
Reduced operating costs and strengthened organizational integration

2021: Expands Electronic Money Payment Services to All Stores

Overview
Completed introduction of iD, Rakuten Edy, and transportation IC cards at all stores.
Impact
Stabilized sales through increased cashless ratio

2020: Refreshes Private Brands

Overview
Refreshed PBs like Okuwa Premium and Okuwa Marche to strengthen differentiation.
Impact
Contributed to higher customer satisfaction and profit improvement

2023: Strengthens Online Supermarket Services

Overview
Introduced mobile phone-only order site and expanded order acceptance methods.
Impact
Increased user numbers and reinforced regional services

2021: Introduces New Equipment at In-House Deli Factory

Overview
Installed latest cooking equipment at Odelica Factory Wakayama.
Impact
Improved quality and production efficiency

2022: Expands Points Program

Overview
Expanded Okuwa Card points usability to subsidiary stores.
Impact
Strengthened customer retention and promotion effects

2020: Expands Self-Checkouts and 24-Hour Operations

Overview
Introduced self-checkouts first in Kansai and increased 24-hour stores.
Impact
Improved operational efficiency and customer convenience

2023: Advances Healthcare and Home-Delivered Bento Business

Overview
Expanded elderly home-delivered bento and strengthened health focus.
Impact
Addressed regional needs and established new revenue sources

2021: Advances Distribution Center Consolidation and Efficiency

Overview
Updated logistics functions at Kansai Distribution Center and others.
Impact
Improved delivery efficiency and cost reductions

Sustainability

  • Energy-saving measures at stores and full LED lighting introduction
  • Active efforts to reduce food loss
  • Environmental conservation activities in collaboration with local residents
  • Reduction of waste plastics and promotion of recycling
  • Environmental education and awareness for employees
  • Eco-delivery considerations for online supermarkets
  • Enhanced store waste sorting and recycling
  • Expansion of local elderly support programs
  • Promotion of handling local products
  • Strengthened sustainable procurement standards
  • Development of low-environmental-impact stores
  • Setting CO2 emission reduction targets