Izutsuya

Basic Information

Stock Code
8260
Industry
Retail Industry
Category Detail
General Merchandise & Food Retailers
Prefecture
Fukuoka Prefecture
Establishment Year
July 1935
Listing Year
December 1961
Official Website
https://www.izutsuya.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
J. Front Retailing, Mitsukoshi Isetan Holdings, Nichi Enter, Takashimaya, Matsuya, H2O Retailing, Kintetsu Department Store, Daimaru, Marui Group, Saikaya, KYCOM

Overview

Izutsuya is a long-established department store founded in 1935 based in Kitakyushu City, Fukuoka Prefecture, and is the only major local department store developing community-oriented retail operations.

Current Situation

Izutsuya recorded consolidated sales of approximately 50.5 billion yen in the fiscal year ending February 2021, with its foundation in regionally rooted department store operations. It mainly operates centered in Kitakyushu City and has related stores in Yamaguchi Prefecture. In recent years, it has successively closed or scaled down multiple stores such as Kurosaki and Colet Izutsuya, and is working to rebuild its revenue base. Amid business restructuring, it is focusing on improving sales efficiency and reducing expenses, and has also implemented financial stabilization through capital reduction. It is strengthening the continuation of community ties and small store expansions, maintaining its unique customer base as a historic department store. Following the withdrawal of competing large department stores, it holds a stable market position as the only department store in Kitakyushu City. Moving forward, it aims to improve profitability through operational efficiency and strengthened community focus while pursuing sustainable business operations.

Trivia

Interesting Facts

  • The only remaining historic department store in Kitakyushu City.
  • History of opening on land from the inn 'Ume-ya' at its founding site.
  • Influenced by past affiliation with Nishitetsu Group, with Nishitetsu as a major shareholder.
  • Region-limited signature product 'Izutsuya Manju' is popular.
  • Shifted to small store expansion after numerous large store closures.
  • Strengthened customer base through unique Friends Club operations.
  • Sponsored J.League club 'Giravanz Kitakyushu'.
  • Areas around Kokura main store used as filming locations for dramas and movies.
  • Significantly reduced capital to utilize tax incentives.
  • The store's mechanical clock is not working but is one of the tourist spots.

Hidden Connections

  • Ongoing investment relationship with Nishi-Nippon Railroad (Nishitetsu), exerting some influence on management.
  • Past collaboration with Mitsukoshi Isetan Group influenced IT systems and merchandise know-how.
  • Actively involved in promoting local culture and commerce as a community-rooted company in Kitakyushu City.
  • Formerly owned bookstore chain now operates independently and has grown on its own.
  • Complex market environment with both competition and collaboration with large discount stores inside and outside Fukuoka Prefecture.
  • Close ties with regional financial institutions key to avoiding bankruptcy.
  • Former subsidiaries and related companies have diversified into non-department store businesses.
  • During store closures, bankruptcy of related third-sector companies impacted the local economy.

Future Outlook

Growth Drivers

  • Expansion of community-oriented small stores
  • Strengthening customer touchpoints through digitalization
  • Enhanced collaboration with local companies and governments
  • Development of traditional products and local specialties
  • Sustainable store operations and cost structure improvements

Strategic Goals

  • Revenue stabilization through expanded regional market share
  • Completion of digital marketing infrastructure
  • Implementation of low environmental impact and sustainable management
  • Creation of new revenue sources through diversified business
  • Enhanced brand value through coexistence with local community

Business Segments

Regional Commercial Facility Operations

Overview
Provides store operation support and tenant management services in regional commercial facilities.
Competitiveness
Operation experience rooted in the region
Customers
  • Shopping Mall Managers
  • Tenant Store Operators
Products
  • Department Store Operation Expertise
  • Region-Limited Store Planning
  • Sales Floor Maintenance Services

Friends Club Business

Overview
Promotes customer cultivation and engagement through membership services to secure stable repeat customers.
Competitiveness
Reliability unique to department stores
Customers
  • Regional General Consumers
  • Membership Customers
Products
  • Membership Benefits Services
  • Points Program
  • Event Planning

Wholesale Business

Overview
Provides high-quality wholesale services to local retail stores and restaurants.
Competitiveness
Curated products and attentive customer service
Customers
  • Regional Retail Stores
  • Restaurants
  • Gift Shops
Products
  • Premium Gift Items
  • Food Wholesale Sales
  • Seasonal Products

Event and Exhibition Operations

Overview
Handles planning and operation of events and exhibitions aimed at regional revitalization.
Competitiveness
Strong collaboration network with the region
Customers
  • Local Governments
  • Chambers of Commerce
  • Local Companies
Products
  • Regional Specialty Fairs
  • Seasonal Event Planning
  • Customer Participation Events

Competitive Advantage

Strengths

  • Strong brand recognition rooted in the community
  • Only local department store in Kitakyushu City
  • Stable relationships with trading banks
  • Diverse product category expansion
  • Secured fixed customer base through Friends Club
  • Experience in regional commercial facility operations
  • Long history and reliability
  • Event implementation through regional collaboration
  • Handling of local specialties
  • Solid financial management

Competitive Advantages

  • High loyalty from local consumers
  • Sole department store in Kitakyushu City following competitors' withdrawal
  • Strength in region-limited products and gift items
  • Improved repeat rate through membership Friends Club
  • Strong ties with local companies and governments
  • Small satellite shops in multi-store expansion
  • Implementation of robust financial reconstruction measures
  • Commercial facility operations rooted in local culture
  • Performance stabilization strategies through flexible store operations
  • Extensive network of related companies

Threats

  • Shrinking market trend in regional department store industry
  • Intensifying competition with large commercial facilities
  • Shift in customer purchasing to online
  • Pressure from entry of new large discount stores
  • Consumption decline due to economic downturn
  • Changes in customer base due to aging population
  • Increasing store maintenance costs
  • Risks from novel infectious diseases and social impacts
  • Heavy rent burden and management instability of related facilities
  • Uncertainty in logistics and supply chains

Innovations

2023: Satellite Shop Expansion

Overview
Promoting expansion of community-oriented small stores and integration into large commercial facilities.
Impact
Contributes to sales diversification and customer base expansion

2022: IT Infrastructure Review and Customer Management Enhancement

Overview
Implemented integration of information systems and sales promotion through customer data utilization.
Impact
Improved customer satisfaction and return visit rate

2021: Financial Restructuring through Capital Reduction

Overview
Implemented significant capital reduction and elimination of accumulated losses to strengthen financial structure.
Impact
Maintained financial soundness and reduced tax burden

Sustainability

  • Environmental conservation activities in collaboration with local communities
  • Promotion of eco-friendly packaging materials
  • Development of energy-saving facilities
  • Support for employees' work-life balance
  • Activities to preserve and support local culture