Heiwado

Basic Information

Stock Code
8276
Industry
Retail
Category Detail
General Merchandise & Food Retailers
Prefecture
Shiga Prefecture
Establishment Year
June 1957
Listing Year
October 1981
Official Website
https://www.heiwado.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Trial Holdings, Aeon Kyushu, San-A, Aeon Hokkaido, OK, Axial, Aeon, Izumi, Fuji, Tenmaya Store

Overview

Heiwado is a mid-sized retail company centered on general supermarkets, founded in 1957, based in Shiga Prefecture, and expanding into the Kansai, Hokuriku, and Tokai regions.

Current Situation

Heiwado recorded consolidated sales of approximately 444.9 billion yen and operating profit of approximately 13.4 billion yen for the fiscal year ending February 2025, maintaining steady performance. It operates 81 stores centered in Shiga Prefecture, strengthening its regional dominance strategy. It has expanded into the Tokai region and Hunan Province in China, promoting diversification. Customer convenience is enhanced through the HOP Card points program and electronic money introduction, with online payments also being expanded. In China, it once operated 4 stores but now maintains only 1. Multiple subsidiaries, including Maruzen, have been integrated to improve management efficiency. Moving forward, it plans to advance new formats such as small stores with self-checkouts and environmentally considerate stores, aiming for sustainable growth by 2030. It focuses on social contribution activities and close regional ties, solidifying its position as a stable, community-rooted supermarket.

Trivia

Interesting Facts

  • The Heiwado store name derives from the founder's surname 'Heiwa'.
  • One of the first retailers in Shiga Prefecture to introduce escalators.
  • First Japanese supermarket to enter Hunan Province, China, in 1998.
  • Points card 'HOP Card' introduced since 1989.
  • Established the 'Katada method' of joint stores with local shopping streets.
  • Has a proprietary brand mascot character 'Hatoppi'.
  • Debuted Virtual YouTuber 'Hato no Sachi' in 2018.
  • Operates over 100 stores with community-rooted retail expansion.
  • Founder Heijiro Natsuhara greatly contributed to regional economy.
  • Addresses diverse markets with multiple store brands like Friend Mart.
  • One of the local companies that signed a comprehensive collaboration agreement with Shiga Prefecture.
  • Aims for efficient operations with new store format 'Friend Mart Smart'.
  • 'Kakekko Tobikko' is the company image song for the 20th anniversary.
  • Adopted company name for sports facility naming rights in Shiga Prefecture.
  • Experienced business integrations with local companies like Yanagen and Tamakoshi.

Hidden Connections

  • Joint venture in Hunan Province realized through friendship agreement with Hunan government.
  • Points card business collaborates with Mitsui Sumitomo Card for credit business expansion.
  • Tokai region entry via store transfer from bankrupt Grand Tamakoshi.
  • Hunan Heiwado stores suffered significant damage from anti-Japanese demonstrations in China.
  • Complex commercial facility management conducted through subsidiaries to enhance efficiency.
  • Early adoption of electronic money, including proprietary electronic money rollout.
  • Strong ties with local banks and governments through community-rooted management.
  • Maintains KFC and other franchises even after restaurant business closures.

Future Outlook

Growth Drivers

  • Market share expansion through deepening of community-rooted dominant strategy
  • Operational efficiency improvement via small stores and self-checkouts
  • Customer convenience expansion through electronic money and smartphone payments
  • Cautious overseas deployment and restructuring in China, etc.
  • Stable revenue securing through strengthened franchise operations
  • Expansion of sustainable store operations and eco-friendly products
  • Maximizing group synergies through subsidiary absorptions and mergers
  • Brand strengthening and customer retention via regional social collaborations
  • Gaining competitive edge through new formats and active digital technology utilization
  • Adapting to market changes by building multi-channel sales systems

Strategic Goals

  • Optimization and expansion of store networks in dominant regions
  • Nationwide rollout of high-efficiency small store operation model
  • Full cashless payment introduction in stores
  • Store operations promoting reduced environmental impact and decarbonization
  • Strengthen community-rooted management by expanding regional collaboration agreements
  • Improve profitability and establish brand in overseas expansion
  • Expand franchise business and develop new areas
  • Revolutionize sales and logistics efficiency through next-generation technology introduction
  • Establish management system emphasizing ESG initiatives
  • Achieve revenue targets of 500 billion yen in sales and 15 billion yen in operating profit

Business Segments

Franchise Operations

Overview
Contributes to diversification of regional dining industry through restaurant chain FC operations.
Competitiveness
Community-rooted and efficient franchise management
Customers
  • Restaurant chain owners
  • Regional industry groups
  • Local governments
Products
  • KFC store operations
  • TSUTAYA store operations
  • Coco's Japan operations

Real Estate and Facility Management

Overview
Contributes to town development through commercial facility operations and management.
Competitiveness
Extensive regional network and management expertise
Customers
  • Shopping center operators
  • Commercial tenants
  • Local governments
Products
  • Large commercial facility management
  • Parking lot operations
  • Facility cleaning and security

Logistics and Supply Chain

Overview
Implements efficient product supply and sales promotion support.
Competitiveness
Logistics system tailored to regional characteristics
Customers
  • Store operations division
  • External retailers
Products
  • Product supply
  • Promotional material production
  • Logistics services

Energy Sales

Overview
Provides electricity retail services at stores in Kansai, Chubu, and Hokuriku.
Competitiveness
Region-specific energy sales channels
Customers
  • Stores
  • General consumers
Products
  • Electricity retail services

Financial Services

Overview
Provides financial-related services to improve customer loyalty.
Competitiveness
Points integration via proprietary card
Customers
  • Customers
  • Franchisees
Products
  • Credit card (HOP-VISA)
  • Points service

Competitive Advantage

Strengths

  • Overwhelming market share through community-rooted dominant strategy
  • Diverse store formats and brand strength
  • Efficient franchise operations via subsidiaries
  • Well-established electronic money and points services
  • Overseas expansion track record in Hunan Province, China
  • Long-term local trust through community ties
  • Secured wide range of sales channels
  • Diversified business structure and stable financial base
  • Enhanced brand value through regional social collaboration
  • Efficient sales strategy utilizing purchase data
  • History and tradition as an established company
  • Operational cost control and efficiency measures
  • CSR activities rooted in the region
  • Broad customer coverage via low-price formats like Friend Mart
  • Scale advantages from multi-store expansion

Competitive Advantages

  • Builds a stronger foundation than competitors through community-rooted management with high share centered in Shiga Prefecture
  • Addresses diverse customer needs and differentiates from competitors through various store brands
  • Achieves business expansion and efficient management via franchise operations linked with subsidiaries
  • Improves customer loyalty and convenience with electronic money and points card services
  • Possesses overseas market development capabilities with experience operating upscale department stores in Hunan Province, China
  • Accumulates know-how in strengthening community-rooted brands through collaboration agreements with local communities
  • Diversifies market fluctuation risks through diverse sales channels and formats
  • Extremely high trust from customers and partners due to long history and management stability
  • High social evaluation through sustainable store operations and energy-saving introductions
  • Holds flexible strategy to market changes with active introduction of experimental formats like discount stores
  • Balances large and small stores for both management efficiency and customer satisfaction
  • High customer retention effect from community-rooted food services
  • Implements procurement enhancement and cost reduction leveraging scale merits from business integrations
  • Stable funding environment through ties with local financial institutions
  • Achieves operational efficiency improvements and cost reductions by actively utilizing new format technologies

Threats

  • Intensifying competition from aggressive Kansai region entry by major national chains
  • Risk of physical store sales decline due to spread of online shopping
  • Market shrinkage from population decline and aging
  • Impact on store operations from novel infectious diseases and social changes
  • Political and economic risks and regulatory changes in overseas expansion areas
  • Intensified price competition with local small retailers
  • Risk of increased overseas business costs from exchange rate fluctuations
  • Labor shortages leading to higher personnel costs and operational difficulties
  • Increased equipment investment burden from strengthened environmental regulations
  • Risk of sales decline from economic downturns or weak consumer sentiment
  • Potential losses from new format investment failures
  • Operational constraints on franchise business from strengthened legal regulations

Innovations

2023: Group strengthening through absorption and merger of Maruzen

Overview
Absorbed and merged Maruzen to improve sales power and management efficiency.
Impact
Promotes store count increase and efficient management integration.

2023: Launch of new format 'Friend Mart Smart'

Overview
Small stores with self-checkouts to suppress operational costs.
Impact
Establishes low-cost operation model and plans expansion.

2022: Expansion of 'HOP Money' electronic money introduction

Overview
Strengthens customer services linked with proprietary electronic money.
Impact
Contributes to improved customer convenience and loyalty.

2021: Start of multiple QR code payment brands

Overview
Introduces PayPay, LINE Pay, Rakuten Pay, etc., to expand convenience.
Impact
Increases store visits by expanding payment options.

2020: Full renovation of Viva City Hikone

Overview
Renovates main stores to boost customer attraction.
Impact
Successfully strengthens regional competitiveness.

2020: Introduction of smartphone payment services

Overview
Diversifies smartphone payments to enhance customer benefits.
Impact
Contributes to increased users.

2024: Health collaboration agreement with National Cerebral and Cardiovascular Center

Overview
Collaborates to prevent lifestyle diseases and extend healthy life expectancy.
Impact
Strengthens ties with regional healthcare and enhances brand.

2023: Restart of 'Kakekko Tobikko' Takanori Nishikawa version broadcast

Overview
Activates in-store communication using image song.
Impact
Contributes to brand awareness improvement.

Sustainability

  • Expanding adoption of energy-saving LED lighting in stores
  • Promoting active social contribution activities to regional communities
  • Providing environmentally considerate electricity retail services
  • Strengthening use of local ingredients and food loss reduction efforts
  • Promoting cashless environment through electronic money introduction
  • Neighborhood store expansion considering transportation access
  • Fostering corporate culture of gratitude such as pre-meal prayer by employees
  • Promoting community collaboration agreements
  • Environmentally considerate designs during store renovations
  • Establishing sustainable product procurement and sales systems
  • Thorough CSR in franchise store operations
  • Strengthening regional disaster prevention support and emergency response systems