Izumi

Basic Information

Stock Code
8273
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Hiroshima Prefecture
Establishment Year
October 1961
Listing Year
October 1978
Official Website
https://www.izumi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Trial Holdings, Aeon Kyushu, San-A, Halows, Aeon Hokkaido, Retail PA, Aeon, Heiwado, Fuji, CSP, Tenmaya Store

Overview

Izumi is a major retail company founded in 1961, centered in western Japan, continuing to grow with supermarkets and large shopping centers "Yume Town" as its mainstays.

Current Situation

Izumi recorded consolidated sales of approximately 415.6 billion yen and operating profit of approximately 31.4 billion yen for the fiscal year ended February 2024, based on store deployments in Chugoku-Shikoku and Kyushu. Its origins trace back to the clothing wholesaler Yamaishi Shoten, and it operates diverse formats such as Yume Town and Yume Mart. Amid fierce competition with rivals like Aeon and Fuji, it differentiates through community-oriented services and product lineups. In recent years, it absorbed 69 West stores in Kyushu, achieving its largest-ever M&A and strengthening its business foundation. It offers private brand products including Seven Premium and "Kurashi More," pursuing a balance of quality and price. In logistics, it leads with the establishment of the Chugoku-Shikoku Logistics Research Group and POS system implementations, advancing procurement rationalization. Management restructuring is progressing with a change in president, promoting multifaceted growth strategies including sustainability efforts and expansion into urban formats.

Trivia

Interesting Facts

  • Founder started business from a black market stall in front of Hiroshima Station
  • Company name derives from a passage in the Chinese classic 'Mencius'
  • Yume Town Takayama is known as the first Yume Town store
  • Completed POS system introduction in 1988 ahead of industry peers
  • Sponsors and involved in operations of Hiroshima Maple Reds
  • Izumi headquarters building houses the Izumi Historical Materials Museum
  • Entry into Kyushu region relatively late in 1995
  • Headquarters building is a composite of commercial facilities and offices
  • Acquisition of 69 West stores by Izumi is the largest M&A to date
  • Once failed in Osaka expansion, withdrawing after just 4 months
  • Expanded PB product strategy through partnership with Seven & i
  • Expanded influence by acquiring stores from Nico Nico-do in Fukuoka
  • Peaked with multiple store brands
  • Addresses customer needs with store formats tailored to regions
  • Yume Town name derives from 'you me town'

Hidden Connections

  • Business alliance with Seven & i Holdings to co-sell PB products
  • Complements Ito-Yokado's store deployments east of Kansai
  • Parent Yamaishi Shoten has long history in clothing wholesaling
  • Largest past M&A absorbing West's Sunny stores into group
  • Supports regional sports teams (Hiroshima Maple Reds, etc.)
  • Promotes capital and business alliances with local firms in Fukuoka and Hiroshima
  • Experience operating fashion buildings like With Wonderland
  • New headquarters building features directly operated supermarket on first floor

Future Outlook

Growth Drivers

  • Market expansion through M&A in Kyushu and western Japan
  • Strengthening customer base via community-focused strategy
  • Enhancement of private brand products
  • Improved cost competitiveness through logistics efficiency
  • New customer acquisition via urban GMS and new formats
  • Sustainable management with sustainability focus and market adaptation
  • Advanced sales and logistics through IT adoption
  • Product diversification via strengthened Seven & i collaboration
  • Enhanced response to growing elderly needs
  • Business partnerships and cooperation with regional retailers

Strategic Goals

  • Maintain top supermarket market share in western Japan
  • Achieve over 30% sales ratio for private brands
  • Complete next-generation equipment introduction for logistics centers
  • Achieve environmental impact reduction goals for sustainable society
  • Improve customer experience using digital technology
  • Build efficient operations by integrating diverse store brands
  • Expand social contribution activities in collaboration with regional society
  • Significantly increase female manager ratio
  • Enhance disaster response and store safety management
  • Achieve 200 stores by fiscal 2030

Business Segments

Regional Commercial Facility Development

Overview
Handles planning and logistics management centered on large shopping malls.
Competitiveness
Integration of community focus and logistics efficiency
Customers
  • Local Shopping Streets
  • Developers
  • Real Estate Companies
  • Local Governments
Products
  • Shopping Center Planning and Operations
  • Store Leasing Management
  • Commercial Facility Logistics Management

Distribution and Logistics Services

Overview
Leverages nationwide distribution network to provide efficient logistics services.
Competitiveness
Low-cost structure through POS and joint procurement
Customers
  • Each Store
  • Trading Partner Manufacturers
  • Logistics Providers
Products
  • Product Delivery
  • Inventory Management Systems
  • Joint Logistics Research

Credit Card Business

Overview
Operates self-issued credit cards and payment services.
Competitiveness
Integrated system to enhance customer loyalty
Customers
  • Individual Customers
  • Corporate Customers
Products
  • Yume Card
  • Points Program
  • Payment Services

Restaurant Franchise Operations

Overview
Operates restaurant chain franchises and develops new brands.
Competitiveness
Store operations linked to facility foot traffic
Customers
  • Store Users
  • Franchise Owners
Products
  • Osaka Osho
  • Ishigamaya Hamburgers
  • Baskin-Robbins Ice Cream
  • Mister Donut

Specialty Store Operations

Overview
Deploys high-specialty tenants within Izumi facilities.
Competitiveness
Accommodates diverse needs
Customers
  • Consumers
  • Tenant Companies
Products
  • Watch Specialty Stores
  • Fashion
  • Lifestyle Sundries

Housing and Real Estate Business

Overview
Manages and develops commercial facilities and real estate.
Competitiveness
Stable revenue through regional collaboration
Customers
  • Real Estate Investors
  • Facility Users
Products
  • Commercial Facility Management
  • Building Leasing
  • Redevelopment Projects

IT System Development and Operations

Overview
Builds and maintains information systems specialized for distribution operations.
Competitiveness
Business improvement support leveraging know-how
Customers
  • Internal Users
  • Store Managers
Products
  • POS Systems
  • Customer Management Systems
  • Web Sales Systems

Sanitation and Cleaning Services

Overview
Specializes in sanitation management for stores and facilities.
Competitiveness
Thorough quality control standards
Customers
  • Stores
  • Factories
Products
  • Cleaning Services
  • Sanitation Management

PB Product Planning and Manufacturing

Overview
Plans and sells private brands tailored to customer needs.
Competitiveness
Diverse product lineup through Seven & i collaboration
Customers
  • Each Store
  • Consumers
Products
  • Kurashi More
  • Seven Premium

Human Resource Development and Training

Overview
Supports skill enhancement for store staff and executive training.
Competitiveness
Accumulated community-focused training expertise
Customers
  • Employees
  • Managers
Products
  • Store Training Programs
  • Executive Development

Advertising and Promotion Services

Overview
Strengthens store foot traffic through promotion planning and operations.
Competitiveness
Regionally rooted marketing capabilities
Customers
  • Store Operators
  • Product Manufacturers
Products
  • Flyer Production
  • Promotion Planning

Logistics Research Group Participation

Overview
Jointly addresses regional logistics challenges to promote efficiency.
Competitiveness
Practical improvements through industry-academia-government collaboration
Customers
  • Logistics-Related Companies
  • Major Retailers
Products
  • Chugoku-Shikoku Logistics Research Group Activities
  • Logistics Issue Resolution

Competitive Advantage

Strengths

  • Overwhelming brand recognition through dominant regional strategy
  • Covers broad customer segments with diverse store formats
  • Private brand partnership with Seven Premium
  • Efficient sales management via early POS system adoption
  • Acquired largest store network in Kyushu through M&A
  • Established Chugoku-Shikoku Logistics Research Group for logistics efficiency
  • Strong procurement network from clothing wholesaling origins
  • Enhanced customer loyalty via Yume Card business
  • Balanced assortment of regional specialties and national brands
  • Service expansion through partnerships with diverse specialty stores
  • Strengthened management base with new headquarters relocation
  • Boosted brand awareness through regional sports support
  • Deep competitive analysis from long market experience

Competitive Advantages

  • Deepens regional markets with western Japan-focused strategy
  • Yume Town format's large shopping center operation expertise
  • Strengthened product power through Seven & i group goods linkage
  • Logistics system leveraging extensive store network
  • Store design and product lineup optimized for local needs
  • Value proposition strategy centered on local products unlike competitors
  • Efficient promotions using customer data
  • Business expansion via aggressive M&A and partnerships
  • Service delivery focused on improving customer satisfaction
  • Promotion of ESG-focused sustainable management
  • Strong ties with local communities
  • Multi-channel sales network development
  • Operational efficiency via advanced IT adoption
  • Successful differentiation through community-focused strategy
  • Flexible store branding for diverse customer acquisition

Threats

  • Risk of shrinking regional markets due to population decline
  • Intense price competition from major players like Aeon
  • Consumption slowdown from regional economic fluctuations
  • Rising logistics costs and distribution complexity
  • Increased compliance costs from stricter food safety regulations
  • System failure risks from cyberattacks
  • Potential store operation restrictions from new infectious diseases
  • Market share erosion from increasing regional competitors
  • Management pressure from rising energy costs
  • Product planning challenges from diversifying consumer preferences
  • Adaptation burden from rapid IT changes
  • Risk of store and logistics damage from natural disasters

Innovations

2024: Absorption and split acquisition of 69 Kyushu stores from West

Overview
Acquired large store network in Kyushu area to strengthen business foundation.
Impact
Contributes to regional share expansion and sales growth

2024: Establishment of Chugoku-Shikoku Logistics Research Group

Overview
Collaborates with Fuji, Halows, etc., to address logistics challenges and promote efficiency.
Impact
Promotes logistics cost reduction and operational efficiency

2023: Launch of Yume Terrace format

Overview
Developed urban-type GMS fusing convenience and relaxation space as new format.
Impact
Acquires new customer segments and revitalizes regions

2020: Introduction of Seven Premium private brand

Overview
Introduced numerous Seven & i PB products for food and daily necessities.
Impact
Improves product quality and customer satisfaction

2024: Completion of new headquarters building with attached store

Overview
Advances efficient operations with composite facility headquarters building.
Impact
Enhances management efficiency and brand image

2022: Response to system outage from cyberattack

Overview
Implemented recovery from ransomware attack and strengthened security measures.
Impact
Minimized damage and reinforced security

Sustainability

  • Promotes local production for local consumption using regional specialties
  • Advances logistics rationalization to reduce environmental impact
  • Active initiatives to promote employment for people with disabilities
  • Promotes diversity through women's empowerment
  • Introduces energy-saving equipment and environmentally considerate stores