Wattmann

Basic Information

Stock Code
9927
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Kanagawa Prefecture
Establishment Year
September 1978
Listing Year
July 1992
Official Website
https://www.wattmann.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hard Off Corporation, Komehyo Holdings, Treasure Factory, Econos, Suppin, Kaitori Kingdom, Proto Corporation, Toyo Dry, Office Busters, BuySell Technologies, Valuence Holdings, Taiun, Genex

Overview

Wattmann, founded in 1978 and based in Kanagawa Prefecture, is a specialty retailer centered on the reuse and recycling business, with strengths in the purchase and resale of precious metals.

Current Situation

In recent years, Wattmann has specialized in the reuse and recycling business, securing stable revenues even after withdrawing from home appliance sales. In 2018, it recorded net sales of approximately 3.5 billion yen and net profit of about 170 million yen, establishing a solid financial base. It primarily engages in buying and selling home appliances, sundries, and precious metals, pursuing wide-area expansion through franchise agreements with Hard Off and Book Off. Recently, it has refreshed its store brands and launched directly operated 'Super Recycle Shop Wattmann.' It maintains a store network centered in Kanagawa Prefecture, featuring community-oriented services. Although it posted losses initially after the business shift, it achieved profitability through improvements in procurement operations. After ending after-sales services, it has focused on the reuse business, planning to emphasize digitalization and enhancement of buyback services going forward. Amid intensifying competition, it aims to differentiate from competitors with its unique product appraisal skills and diverse product lineup.

Trivia

Interesting Facts

  • Once boasted annual sales of about 50 billion yen as a home appliance retailer in Kanagawa
  • Rare case of shifting from home appliances to reuse specialization after withdrawal
  • Also operates format with Book Off stores inside
  • Former name Shimizu Denki at founding, lightning character was a hit in CMs
  • President has been connected since founding
  • All home appliance after-sales services ended in 2009
  • Store name 'Wattmann' reintroduced in 2013 for brand revival
  • Originally comparable in scale to Nojima in home appliance retail
  • Regularly holds customer-participatory buyback events with community focus
  • Considers local community in utilizing closed store sites

Hidden Connections

  • Hard Off Corporation is one of the major shareholders with strong business collaboration
  • Unique business ties with hobby division supported by Surugaya
  • Utilizes Book Off franchise agreements to achieve in-store compounding
  • President is former Shimizu Gogyo affiliate, knowledgeable about history from appliances to recycling

Future Outlook

Growth Drivers

  • Expansion of used market and rising consumer environmental awareness
  • Improved appraisal speed and accuracy through IT utilization
  • Further expansion of franchise network
  • Increasing demand in brands and hobbies
  • Sales growth via strengthened e-commerce channels

Strategic Goals

  • Double the number of stores and franchise affiliates
  • 40% improvement in operational efficiency through digital tech adoption
  • 30% waste reduction via strengthened sustainability
  • Double major precious metals transaction volume
  • Nationwide rollout of community-oriented services

Business Segments

Store Franchise Support

Overview
Provides operational support and product supply to franchise stores.
Competitiveness
Community-based franchise management capabilities
Customers
  • Sole proprietors
  • Small businesses
  • Local retailers
  • Franchise affiliates
Products
  • Operational support
  • Product supply
  • Promotion support

Reuse Goods Distribution

Overview
Business division mainly handling circulation and wholesale of reuse items.
Competitiveness
Diverse product procurement and sales network
Customers
  • Recycle shops
  • Used goods stores
  • Wholesalers
Products
  • Used precious metals
  • Used home appliances
  • Used hobby goods

Buyback Appraisal Services

Overview
Provides specialized appraisal services at stores nationwide and online.
Competitiveness
High-precision appraisal technology and reliability
Customers
  • General consumers
  • Online customers
  • Corporate customers
Products
  • Precious metals appraisal
  • Brand goods appraisal
  • Home appliances appraisal

Logistics & Storage Services

Overview
Supports logistics management and storage, centered on reuse goods.
Competitiveness
Nationwide network and efficient logistics system
Customers
  • Store franchises
  • Wholesalers
  • Online sales operators
Products
  • Goods distribution management
  • Storage services
  • Delivery arrangements

IT & System Development Support

Overview
Develops and operates systems to improve store operations efficiency and customer service.
Competitiveness
Industry-specific IT solutions
Customers
  • Franchise stores
  • Internal operations departments
Products
  • POS systems
  • Inventory management systems
  • Web sales platforms

Competitive Advantage

Strengths

  • Community-based store expansion
  • Abundant used goods lineup
  • Strong franchise network
  • High product appraisal technology
  • Established procurement routes
  • Solid financial base
  • Diverse business brand deployments
  • Specialized know-how in home appliance reuse
  • High customer repeat rate
  • Collaboration system with partner companies

Competitive Advantages

  • Stable market base centered in Kanagawa Prefecture
  • Strong franchise ties with Hard Off and Book Off
  • Broad services covering diverse product categories
  • Convenience from integration of online sales and physical stores
  • Specialized buyback appraisal and instant cash payment system
  • Trusted brand power in the reuse industry
  • Rapid product turnover to minimize inventory risk
  • Product assortment aligned with local needs
  • Efficient labor operations and employee training
  • Customer appeal through proactive store brand refresh

Threats

  • Intensifying used market competition leading to price declines
  • Franchise store management risks
  • Increased business costs from stricter regulations
  • Reduced procurement due to shorter lifespan of digital devices
  • Decreased consumer spending from economic fluctuations
  • Competitive pressure from new entrants
  • Risk of reduced store footfall from COVID-19 etc.
  • Impact on physical stores from expanding online retail
  • Declining buyback prices leading to lower profit margins
  • Risk of failing to adapt to changing customer preferences

Innovations

2020: Wattmann Hobby Surugaya Totsuka Store Opening

Overview
Launched a hobby specialty store with Surugaya's backing to attract new customers.
Impact
Increased hobby-related sales and captured younger customers

2023: Store Brand Refresh and Direct Operations Strengthening

Overview
Improved brand value by bringing recycling operations in-house.
Impact
Achieved higher customer satisfaction and profitability

2021: Introduction of Online Buyback Appraisal System

Overview
Enabled online buyback appraisals to enhance customer convenience.
Impact
Increased remote customer handling and appraisal requests

2022: Logistics Improvements for Product Circulation Efficiency

Overview
Optimized logistics center to improve product turnover rate.
Impact
Reduced inventory risk and costs

Sustainability

  • Recycling promotion activities at stores
  • Waste reduction program rollout
  • Energy-saving store designs to reduce environmental impact
  • Enhanced quality control for reuse goods
  • Participation in local cleanup activities