Axial Retailing

Basic Information

Stock Code
8255
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Niigata Prefecture
Establishment Year
August 1967
Listing Year
March 2000
Official Website
https://www.axial-r.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Halows, Daikokuten Bussan, United Super Markets Holdings, JM Holdings, Retail PA, Life Corporation, Max Valu Tokai, Heiwado, Yaoko, Arks, Baro Holdings, Berg

Overview

Axial Retailing is a retail company established in 1967, operating food supermarket businesses mainly centered in Niigata Prefecture, and as a key member of the CGC Group, it engages in management closely tied to local communities.

Current Situation

Axial Retailing maintained solid performance in the fiscal year ending March 2025, with consolidated sales of approximately 281.9 billion yen, operating income of about 12.1 billion yen, and net income of about 9.0 billion yen. Its core food supermarket business operates primarily in Niigata Prefecture and the northern Kanto and Hokushinetsu regions, boasting top regional market share with the Harashin, Narus, and Fressay brands. Leveraging scale advantages through business integration, it focuses on joint procurement and software development to promote efficient operations. Subsidiaries such as Rori contribute stable earnings through bread and confectionery manufacturing, while also developing regionally rooted developer businesses. In recent years, it has strengthened online shopping, operating net supermarkets across all of Niigata Prefecture. In 2020, it received the Japan Quality Incentive Award and emphasizes comprehensive quality management. Amid intensifying competition with major players like Aeon and Uny, it differentiates through locally rooted product development and service enhancements. Moving forward, it will advance sustainability initiatives and accelerate digitalization to achieve sustainable growth in the medium to long term.

Trivia

Interesting Facts

  • Its founding predecessor began with candle sales in 1907.
  • Deploys three brands—Harashin, Narus, and Fressay—with a community focus.
  • Bread and confectionery manufacturer 'Bon-Ohashi' is deeply rooted locally.
  • First food retailer to receive the Japan Quality Incentive Award.
  • Sponsors the '20-inch shell' at Nagaoka Festival Grand Fireworks, contributing to the community.
  • High coverage rate for net supermarkets in Niigata Prefecture.
  • Rori's prepared foods utilize local ingredients tailored to each store.
  • Long-standing local capital giant with multi-store operations in Niigata Prefecture.
  • Enhancing competitiveness through CGC Group membership.
  • Engages in developer business beyond supermarket operations.
  • Inherits the production method of local confectionery 'Yamariya Ogunikokumanju'.
  • In-house consistent manufacturing of high-quality bread and confectionery brands.
  • Once operated conveyor belt sushi 'Kaisen Nihonkai'.
  • Deploys multiple points cards for customer retention.
  • Holds numerous proprietary developed products as a regional core supermarket.

Hidden Connections

  • Conducts joint procurement with supermarkets from other prefectures in the CGC Group to strengthen cost competitiveness.
  • Enhances corporate image and community contributions through sponsorship of the Nagaoka Festival Fireworks.
  • Rori inherits the regional confectionery brand 'Bon-Ohashi,' supporting local confectionery industry and culture.
  • Temporarily diversified into home appliance sales through joint venture 'Jo Shin Narus' with former Jo Shin Denki.
  • Provides mutually usable gift certificates and points cards across multiple group brands to improve customer convenience.
  • Collaborates with local chambers of commerce and municipalities on regional revitalization events and disaster support activities.
  • Involved in redevelopment projects like the 'K's Town Wakazato' complex commercial facility in Nagano Prefecture's Wakazato as a developer.
  • Enhances store receiving efficiency and inventory management accuracy through centralized regional logistics center operations.

Future Outlook

Growth Drivers

  • Strengthening of region-specific services and customer loyalty enhancement
  • Operational efficiency improvements through digitalization and IT utilization
  • EC business expansion centered on net supermarkets
  • Diversified rollout of private brand products
  • Value creation through community-focused developer business
  • Brand value enhancement via environmentally considerate operations
  • Focus on core businesses following withdrawal from food service formats
  • Integration and optimization of diverse sales channels
  • Improved social evaluation through proactive sustainability responses
  • Promotion of regional revitalization projects in collaboration with communities
  • Continuous improvements to efficient logistics systems
  • Service quality enhancement through employee training and talent development

Strategic Goals

  • Achieve 30% reduction in environmental impact across all stores
  • Expand net supermarket sales to 20% of total sales
  • Maintain regional top share and expand customer base through new region entries
  • Achieve over 50% private brand product ratio
  • Maximize operational efficiency through 100% digitalization
  • Implement 50 community collaboration projects annually
  • Maintain turnover rate below 10% through diversity and improved work environment
  • Increase developer business revenue share to over 20% of total sales
  • Strengthen disaster response capabilities and regional safety infrastructure
  • Promote regional health consciousness through sustainable product development and sales

Business Segments

Food Manufacturing and Sales

Overview
Manufactures and sells processed food products to group supermarkets and external parties.
Competitiveness
Regionally specialized homemade products and advanced manufacturing technology
Customers
  • Food supermarket stores
  • Restaurants
  • Retail stores
Products
  • Prepared foods
  • Bento
  • Bread and confectionery

Logistics and Delivery Services

Overview
Supports store supply through efficient logistics center operations and delivery networks.
Competitiveness
Highly efficient delivery system through centralization
Customers
  • Group stores
  • External retailers
Products
  • Product delivery
  • Centralized fresh food processing

Scrap & Build

Overview
Handles redevelopment of aging stores and planning/operation of new commercial facilities.
Competitiveness
Development capabilities attuned to local conditions
Customers
  • Group subsidiaries
  • Local businesses
Products
  • Real estate development
  • Complex commercial facility operations

Franchise 100 Yen Shops

Overview
Franchise business for 100 yen shops operated inside and outside group stores.
Competitiveness
Diversification of store customer attraction
Customers
  • Individual operators
  • Group stores
Products
  • CanDo
  • Daiso

Competitive Advantage

Strengths

  • Strong customer base rooted in local communities
  • Broad customer acquisition through multi-brand deployment
  • Joint procurement benefits from CGC Group membership
  • Efficient logistics centers and delivery networks
  • Revenue diversification through developer business
  • High-quality prepared foods and bread manufacturing technology
  • Online shopping and net supermarket operations
  • Powerful points card services
  • Synergies from historic business integrations
  • Stable financial foundation

Competitive Advantages

  • Niigata Prefecture's largest locally capitalized supermarket group
  • Regional share expansion and customer differentiation via multiple brands
  • Local product planning and rapid response to regional needs
  • Low-cost, high-quality procurement leveraging CGC Group
  • Prepared foods and confectionery rollout utilizing in-house food manufacturing subsidiaries
  • Commercial facility development capabilities as a local developer
  • Resource-efficient allocation under holding company structure
  • Market dominance through diverse sales channels
  • Customer retention via points cards and franchises
  • Active participation in local culture and events

Threats

  • Intense competition from major national supermarket chains
  • Market contraction risk due to population decline
  • Rising logistics costs and labor shortages
  • Burden from stricter food safety standards and regulations
  • Damage to stores and production sites from natural disasters
  • Intensifying competition from internet mail-order
  • Uncertainty in regional economic conditions
  • Price competition from new entrants
  • Raw material price fluctuation risks
  • Stricter labor environment regulations

Innovations

2024: Net Supermarket Service Expansion

Overview
Expanded delivery services to the entire Niigata Prefecture, enhancing customer convenience.
Impact
Achieved sales growth and customer base expansion

2023: POS System Renewal and Digitalization Push

Overview
Renewed store sales management systems to improve operational efficiency.
Impact
Management improvements through real-time data utilization

2022: Strengthened PB Product Development

Overview
Launched private brand products utilizing local specialties.
Impact
Contributed to differentiation and customer satisfaction

2021: Logistics Center Automation Introduction

Overview
Introduced automation equipment to centralized fresh food processing logistics centers.
Impact
Delivery efficiency improved 20%, achieving cost reductions

2020: Quality Management Enhancement Wins Japan Quality Incentive Award

Overview
Received the first award in the food retail industry through TQM promotion.
Impact
Improved quality management and customer trust

2024: Green Energy Introduction Promotion

Overview
Began utilizing renewable energy at stores and logistics centers.
Impact
CO2 emissions reduction and lower environmental impact

2023: Local Brand Products and Local Production for Local Consumption

Overview
Promoted development and distribution expansion of products using local agricultural produce.
Impact
Regional economic revitalization and increased customer support

2021: Digital Marketing Introduction

Overview
Implemented effective promotions through customer data analysis.
Impact
Improved sales promotion efficiency and customer loyalty

2020: IT Utilization Promotion for Shortened-Hour Stores

Overview
Expanded QR code payments and electronic flyers to all stores.
Impact
Operational efficiency and customer convenience improvements

Sustainability

  • Quality management enhancement via Japan Quality Incentive Award
  • Expansion of renewable energy introduction at stores
  • Promotion of local production for local consumption using agricultural products
  • Active efforts to reduce food loss
  • Employee education for heightened environmental awareness
  • Strengthened collaboration with local communities
  • Introduction of environmentally considerate logistics systems
  • Promotion of circular resource utilization
  • Resource conservation through paperless operations
  • Introduction of clean energy vehicles