Daiwa

Basic Information

Stock Code
8247
Industry
Retail Industry
Category Detail
General Merchandise & Food Retailers
Prefecture
Ishikawa Prefecture
Establishment Year
December 1943
Listing Year
March 2000
Official Website
https://www.daiwa-dp.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
J. Front Retailing, Mitsukoshi Isetan Holdings, Nikan, Takashimaya, Matsuya, H2O Retailing, Kintetsu Department Store, Marui Group, Saika-ya, Itozuya, Nippon Kenchiku Gaku, Genex

Overview

Daiwa is a department store chain established in 1943 with its base in the Hokuriku region, operating the Korinbo store and Toyama store mainly in Ishikawa Prefecture, and developing retail operations deeply rooted in the local community.

Current Situation

Daiwa is headquartered in Kanazawa City, Ishikawa Prefecture, and recorded consolidated sales of approximately ¥33.9 billion in the fiscal year ending February 2021. It focuses management resources on three stores: Korinbo, Toyama, and Takaoka (closed in 2019), advancing unique product assortments and store reforms amid a challenging regional economic environment. Centered on long-standing family management and deep regional ties, it pursues diversification into publishing, printing, hotel operations, and more. However, it closed all stores in Niigata Prefecture by 2010 to streamline operations. The Korinbo store aims to attract younger customers through major renovations introducing brands, while the Toyama store maintains stable operations as the anchor tenant of So-kurabe Ferio. Performance-wise, after falling into the red following the Lehman Shock, it implemented structural reforms to achieve operating profit, and now pursues stable management through regional focus and selective concentration. Moving forward, it plans to strengthen satellite shops and expand online sales bases, while leveraging ties with J. Front Retailing and Daimaru to seek further profit improvements.

Trivia

Interesting Facts

  • The crest of Daiwa Co., Ltd. features a unique design incorporating a plum blossom shape.
  • Nearly 100 years of history as an established department store deeply ingrained in local residents.
  • Possesses long-term trusted relationships with numerous influential customers.
  • The former Takaoka store site featured the rooftop garden 'Serio Sky Garden'.
  • The Katamachi Kirara redevelopment building, original main store site, is located in Kanazawa Korinbo.
  • Daiwa has strong partnership ties with Daimaru under J. Front Retailing.
  • Historic department store chain formed by 1943 merger.
  • Shifted from multi-prefecture operations to regional focus on three Hokuriku prefectures.
  • Actively invests in local TV stations and involved in regional media.
  • Successive presidents inherited by the Imura Tokusaburo family, an owner-operated enterprise.

Hidden Connections

  • Daiwa holds shares in J. Front Retailing, which owns Daimaru Matsuzakaya Department Stores, strengthening partnerships.
  • From its Miyai Yohin store days, handles products from long-established ceramics company Nikko, closely tied to the region.
  • Utilized sales bases as official supplier to the Imperial Japanese Army's 9th Division to maintain performance during pre- and post-war periods.
  • History of merger with former prominent Hokuriku department store Maruboshi continues to influence today.
  • Keiso Shobo, published by a related company, plays a key role in regional literary and cultural dissemination.
  • Before sales reorganization, operated stores in Niigata, Nagaoka, Joetsu, etc., deeply involved with regional economies.
  • Historically strong ties with Hokuriku's socioeconomic circles and politicians.
  • Contributes to regional economic revitalization through planning and development of unique local brand products.

Future Outlook

Growth Drivers

  • Strengthening and expansion of customer base through regional closeness strategy
  • Effects of renovations and brand introductions at Korinbo and Toyama stores
  • Expansion of mail-order sales via omni-channel strategy
  • Improved product strength through strengthened ties with J. Front Retailing
  • Development of products and services specialized for local customer needs
  • Acquisition of new customers through collaboration with regional culture and tourism
  • Profit improvement through efficient store operations and cost management
  • Expansion of satellite shop network
  • Deepening of CSR activities emphasizing environment and society
  • Deepened customer relationships through enhanced digital marketing
  • Revenue diversification through proactive introduction of new formats and services
  • Advancement of joint revitalization projects with regional administrations

Strategic Goals

  • Establish position as the top choice department store in local Hokuriku region
  • High-profitability of three sales bases and improved customer satisfaction
  • Sales expansion through strengthened digital channels
  • Practice of sustainability management and reduction of environmental impact
  • Ongoing expansion of regional culture and industry support activities
  • Strengthened product planning for diverse customer segments
  • Establishment of omni-channel system and new channel development
  • Medium- to long-term stable growth through improved revenue structure
  • Advanced integration of information systems and utilization of customer data
  • Positioning regional social contributions as a pillar of corporate value enhancement

Business Segments

Wholesale to Restaurants and Dining Establishments

Overview
Wholesaling ingredients and gift products to local dining businesses, maintaining strong trading relationships.
Competitiveness
Local ingredient sourcing and trusted network
Customers
  • Local Restaurants
  • Hotels
  • Cooking Schools
  • Catering Companies
Products
  • Food Gift Sets
  • Local Ingredient Sourcing
  • Premium Ingredients

Product Supply to Retailers

Overview
Stably supplying products to partner department stores and shops, contributing to regional market activation.
Competitiveness
Product development tailored to local commercial areas
Customers
  • Gift Shops
  • Local Department Stores
  • Specialty Stores
Products
  • Gift Items
  • Regional Specialties
  • Seasonal Goods

Events and Promotion Business

Overview
Supporting regional revitalization through planning and operation of local commercial events and cultural affairs.
Competitiveness
Extensive network including local entities
Customers
  • Local Chambers of Commerce
  • Municipalities
  • Cultural Organizations
Products
  • Event Management
  • Advertising Production
  • Regional Collaboration Planning

Subsidiary Management and Operational Support

Overview
Providing management support services to improve overall group operational efficiency.
Competitiveness
Strong group oversight by founding family
Customers
  • Related Companies
  • Group Subsidiaries
Products
  • Management Operations
  • Accounting Services
  • HR Support

Competitive Advantage

Strengths

  • Strong customer base from regional closeness management
  • Excellent physical locations of Korinbo and Toyama stores
  • Unified decision-making from long-standing family management
  • Revenue stabilization through diversification
  • Strong brands and partnership relationships
  • Meticulous customer service
  • History and trust as a regional department store
  • Efficiency gains from sales base reorganization
  • Deep contributions to regional culture
  • Handling of wide product categories
  • Long-term customer loyalty
  • Expansion of online mail-order
  • Strengthening of satellite shop rollout
  • Support from influential major shareholders
  • Abundant track record in events

Competitive Advantages

  • Differentiated from competitors as a Hokuriku-focused regional department store
  • Strong sales foundation from Korinbo store redevelopment expanding commercial space and introducing brands
  • Leveraging partnerships with J. Front Retailing and Daimaru for product strength and shared information systems
  • High local trust and stable management structure from family operation
  • Toyama store's drawing power as anchor of So-kurabe Ferio and regional collaboration
  • Securing new revenue sources through diversified subsidiaries
  • Building highly specialized sales channels limited to the prefecture
  • Enhanced appeal to younger demographics through proactive store renovations
  • Differentiated product lineup utilizing diverse regional assets and culture
  • Differentiation through service rollout leveraging each store's characteristics

Threats

  • Intense competition with urban department stores
  • Declining foot traffic from rapid spread of online shopping
  • Shrinking market size due to regional economic contraction and population decline
  • Risk of customer outflow to nearby large commercial facilities
  • Impact on store operations from novel infectious diseases and other external shocks
  • Cost pressures from high fixed expenses and aging facilities
  • Demands for product assortment review due to changing consumer purchasing behavior
  • Intensified competition from department store reorganizations and mergers
  • Risks from fluctuations in logistics and supply chains
  • Increased operational burdens from stricter societal environmental regulations

Innovations

2021: Launch of Online Mail-Order Site 'Hokuriku Ippin.com'

Overview
Started online sales of regional specialties and others, establishing new sales channels.
Impact
Increased mail-order sales and acquisition of new customers

2020: Korinbo Store Major Renovation Project

Overview
Implemented full store renovation including introduction of 27 brands such as women's fashion.
Impact
Increased visits from younger customers and sales improvement

2024: Satellite Shop Product Assortment Enhancement

Overview
Expanded food and apparel at satellite stores in Toyama, Nonoichi, and Nanao to improve drawing power.
Impact
Diversifying revenue sources for local branches

Sustainability

  • Promotion of store energy efficiency improvements
  • Strengthened efforts in recycling promotion and waste reduction
  • Advancement of local production for local consumption using regional products
  • Support for environmental education through collaboration with local communities
  • Eco-awareness sharing campaigns with customers