Sundrug
Basic Information
- Stock Code
- 9989
- Industry
- Retail
- Category Detail
- Specialty Stores & Drugstores
- Prefecture
- Tokyo
- Establishment Year
- April 1965
- Listing Year
- August 1994
- Official Website
- https://www.sundrug.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Kawachi Drug, MatsukiyoCoco, Welcia Holdings, Create SD Holdings, Cosmos Pharmaceutical, Tsuruha Holdings, Kusuri no Aoki Holdings, Sugi HD, Yakuo Holdings, Genky Drugstores
Overview
Sundrug is a major drugstore chain headquartered in Fuchu City, Tokyo, established in 1965. It operates a variety of store formats nationwide and promotes regionally focused pharmacies and discount store businesses.
Current Situation
Sundrug recorded consolidated sales of approximately 801.8 billion yen, operating profit of about 44.5 billion yen, and net profit of about 30.8 billion yen for the fiscal year ending March 2025, with drugstores centered in the Tokyo metropolitan area and expanding nationwide. It achieves efficient store operations through its unique 'one store, two lines' system, separating sales and operations. It strengthens regionally focused stores through subsidiaries and franchises, including pharmacies and discount stores. It enhances customer retention through partnerships with Rakuten Point Card and Edy Card, and focuses on e-commerce. It improves supply chain efficiency with nationwide logistics centers. Backed by a solid financial base, it continues store expansion in Sapporo subsidiaries and Kyushu and Tohoku regions, and in 2022 acquired Ooya Co., Ltd. as a subsidiary to enter the Shikoku region. Amid fierce industry competition, it focuses on expanding its customer base and improving service quality, aiming for sustainable growth and regional contributions. It has strengthened compliance following past guidance on violations of the Premiums and Representations Act.
Trivia
Interesting Facts
- Founded in 1957, with a long history as a drugstore chain
- Achieves store operation efficiency with unique 'one store, two lines' system
- Self-develops hybrid convenience-drugstore model 'Sundrug CVS'
- Double points possible through Rakuten Point Card partnership
- Large-scale chain employing approximately 7,800 people nationwide
- Broad entry into medical field via pharmacy subsidiaries
- Once confused with Chubu Yakuhin's 'Sundrug Store'
- Characterized by diverse regional store expansion through subsidiary acquisitions
- National TV commercials started in 2007
- Promotes cashless payments via Rakuten Edy Card partnership
- Built efficient product supply network with nationwide logistics centers
- Related to shopping center operator Forest Mall founded by founder's son
- History of guidance for Premiums and Representations Act violation
- Strengthens nationwide expansion through diverse franchise partners
- Featured on TV Tokyo's 'Cambria Palace' introducing management strategy
Hidden Connections
- Linked with Rakuten's point program, integrating with proprietary point card.
- Founder's family established shopping center operator Forest Mall.
- Pioneered hybrid convenience-drugstore format ahead of competitors.
- Partnered with DeNA to expand e-commerce business.
- Expanded nationwide network via franchise contracts and local drugstore subsidiaries.
- Logistics centers more widely dispersed than industry competitors.
- Collaborates with Kawachi Drug and Direx to strengthen regional market presence.
- Established corporate brand image through long-term TV ads and media appearances.
Future Outlook
Growth Drivers
- Growing demand for aging society in domestic drugstore market
- Strengthening and expansion of pharmacy medical collaborations
- Improved customer convenience via electronic payments and point integrations
- E-commerce expansion and digital promotions
- Regional penetration through multi-store and franchise growth
Strategic Goals
- Optimize store networks in major urban areas and improve sales efficiency
- Strengthen medical collaborations and advance pharmacy services
- Standardize eco-friendly stores and achieve sustainability
- Innovate sales strategies through digital transformation
- Further enhance brand recognition and customer loyalty
- Aggressive investments in new business areas for diversified revenue
- Expand regional contributions and elevate corporate value
- Smartize logistics and supply chains for efficiency
- Improve employee satisfaction and talent development via workstyle reforms
- Strengthen legal compliance and systems
Business Segments
Store Operations Support
- Overview
- Provides operational support and product supply to directly operated and franchise stores nationwide.
- Competitiveness
- Rapid support through nationwide network
- Customers
-
- Franchise affiliates
- Directly operated store operations division
- Products
-
- Store management systems
- Sales promotion tools
- Logistics services
Pharmacy Services
- Overview
- Provides specialized services for pharmacy operations, supporting regional healthcare.
- Competitiveness
- Regionally focused pharmacy network
- Customers
-
- Local medical institutions
- General consumers
- Products
-
- Prescription dispensing
- Medication management
- Medication guidance
Product Procurement and Logistics
- Overview
- Efficient product supply using large-scale logistics centers.
- Competitiveness
- Advanced logistics network
- Customers
-
- Chain stores
- Franchises
- Business customers
- Products
-
- Pharmaceuticals
- Daily necessities
- Cosmetics
Discount Business Support
- Overview
- Bulk product supply and management support for discount store operations.
- Competitiveness
- Low-cost procurement and regional adaptability
- Customers
-
- Discount store operators
- Local retailers
- Products
-
- Product procurement
- Sales management
- Business consulting
E-commerce Promotion
- Overview
- Expands sales via internet mail order and improves customer convenience.
- Competitiveness
- Diverse e-commerce through partner collaborations
- Customers
-
- Individual consumers
- Corporate customers
- Products
-
- Online sales
- Digital marketing
- Home delivery services
Competitive Advantage
Strengths
- Extensive nationwide store network and diverse store formats
- Unique 'one store, two lines' system separating sales and operations
- Strong franchise network
- Stable growth in pharmacy business
- Efficient logistics center placement
- Strengthened integration with Rakuten Point Card
- Multi-channel strategy
- Solid financial base and stable capital
- Active subsidiary acquisitions and integrations
- Customer-oriented product development
- Proprietary brand products
- Enhanced regionally focused services
- High store operation efficiency and workforce
- Sales expansion through e-commerce
- Differentiation via convenience store-type stores
Competitive Advantages
- Diverse store formats nationwide surpass competitors in retail
- Efficient management via unique sales-operations separation model
- Strong entry into medical field through pharmacy business
- Enhanced customer loyalty via Rakuten Point Card and Edy integration
- Superior regional multi-format penetration using numerous subsidiaries
- Maintains competitiveness with ongoing franchise expansion amid industry giants
- Rapid product supply network built with nationwide logistics centers
- Successful differentiation through region-specific promotions and assortments
- Strengthened systems for trust recovery post-regulatory violations
- Improved customer service quality through display and staff role separation
Threats
- Intense price and customer acquisition competition in drugstore industry
- Shifting consumer health preferences and product needs
- Ongoing compliance challenges with laws like Premiums and Representations Act
- Market share pressure from new entrants and e-commerce rise
- Market contraction due to regional population decline and aging
- Potential fluctuations in raw material prices and rising logistics costs
- Demands for improved labor environment and difficulties in staffing
- Need for rapid response to technological innovations
- Changes in consumer point service usage trends
- Store operation risks from disasters or pandemics
- Uncertainties in partnership dissolutions or collaborations
- Intensifying online sales competition with rivals
Innovations
2023: Expansion of Rakuten Edy Card Partnership
- Overview
- Introduced Edy cards with point functions in collaboration with Rakuten Payment.
- Impact
- Improved point accrual rates and store visit promotion.
2022: Full Subsidiary Acquisition of Ooya Co., Ltd.
- Overview
- Acquired shares to fully subsidiary Ooya for strengthening Shikoku drugstore operations.
- Impact
- Business expansion and regional share growth in Shikoku.
2021: Strengthening E-commerce 'Sundrug.com'
- Overview
- Enhanced functions and product lineup of internet mail-order site.
- Impact
- Increased e-commerce sales and expanded customer base.
2020: Absorption Merger of Sundrug Pharmaseas
- Overview
- Absorbed subsidiary to improve group management efficiency.
- Impact
- Reduced management costs through pharmacy business integration.
2024: Renewal of Product Management System
- Overview
- Introduced latest IT for improved inventory accuracy and replenishment speed.
- Impact
- Reduced waste and sales opportunity losses.
2023: Introduction of Rakuten Point Card
- Overview
- Introduced Rakuten Point Card to strengthen point services.
- Impact
- Improved customer loyalty and promotional effects.
2021: Expansion of Sundrug CVS Stores
- Overview
- Promoted nationwide addition of hybrid convenience-drugstore format.
- Impact
- Increased customers by addressing diverse needs.
2023: Introduction of AI Sales Forecasting System
- Overview
- Advanced product replenishment efficiency via AI demand forecasting.
- Impact
- Maximized sales opportunities and optimized inventory.
2022: Enhanced Store Staff Training Program
- Overview
- Expanded specialized training for sales and operations staff to improve service quality.
- Impact
- Contributed to higher customer satisfaction and lower turnover.
2024: Promotion of Environmentally Considerate Store Design
- Overview
- Deployed new store designs with energy-saving equipment and eco-friendly materials.
- Impact
- Reduced environmental impact and enhanced brand image.
Sustainability
- Reducing plastic packaging at operating stores
- Strengthening environmental measures for regional pharmacies
- Improving energy efficiency at logistics centers
- Creating comfortable workplaces and health support for employees
- Active participation in regional social contribution activities
- Promoting recycling toward zero waste
- Expanding eco-friendly product offerings
- Enhancing supply chain sustainability
- Building trust through strengthened compliance
- Conducting education and awareness activities for regions and customers
- Resource-saving initiatives using digital technology
- Promoting sustainable product procurement