TRIAL Holdings, Inc.

Business Details

Centered on TRIAL Company, Inc., the segment operates discount stores nationwide under the concept "Your Store for Daily Necessities." Effective July 1, 2025, SEIYU, Inc. became a wholly owned subsidiary, substantially expanding the store network in the Kanto, Chubu, and Kansai areas. The segment operates a total of 615 stores group-wide, combining TRIAL's four formats—Mega Center, Super Center, smart, and small-format stores (372 TRIAL stores)—with SEIYU supermarkets and hypermarkets (243 stores). The segment provides one-stop shopping through EDLP, PB products, enhanced prepared foods, and IoT device utilization.

Recent Overview

Following the full acquisition of SEIYU, net sales increased 67.5% year on year, establishing a Group-wide network of 615 stores.

Effective July 1, 2025, the company acquired all shares of SEIYU (acquisition consideration of ¥409,650 million), making it a wholly owned subsidiary. Net sales of the Retail Distribution Business reached ¥1,000,217 million (up 67.5% year on year), with segment profit of ¥26,842 million (up 72.2% year on year). The addition of SEIYU's 245 stores established a combined total of 615 stores. Initiatives to create integration synergies are underway, including mutual cross-deployment of PB products between the two companies and the opening of two "TRIAL SEIYU" new-format stores (November 2025 and February 2026). Goodwill stands at a provisional value of ¥306,538 million (amortized evenly over 20 years), with the purchase price allocation not yet finalized.

Key Products

Growth Drivers

• Expansion of the store network into the Kanto, Chubu, and Kansai areas and rapid growth in sales scale through the full acquisition of SEIYU (total of 615 Group stores)
• Creation of synergies through mutual cross-deployment of PB products between TRIAL and SEIYU and optimal utilization of Process Centers
• Building an urban GMS revitalization model and capturing metropolitan-area customers through the new "TRIAL SEIYU" format
• Sustained growth in existing-store sales through enhanced "food" offerings centered on the four fresh food categories (produce, meat, seafood, and prepared foods)
• Improved profitability through the continued expansion of the PB product ratio
• Active pursuit of new store openings (during the period: 2 Mega Centers, 14 Super Centers, 2 smart stores, 6 small-format stores)
• Labor savings in store operations and improved shopping experience through IoT device deployment such as Skip Cart (279 stores, 23,485 units introduced)
• Price-appeal initiatives such as exciting prices, capturing budget-conscious consumers

Risks

• Impairment risk related to goodwill from the SEIYU integration (provisional value of ¥306,538 million, amortized evenly over 20 years) and risk of accounting changes upon finalization of the purchase price allocation
• Increased financial leverage and interest rate risk from a sharp rise in short-term borrowings (¥367,400 million) to fund the SEIYU acquisition (interest expense surged from ¥54 million in the same period of the prior year to ¥2,996 million in the current period)
• Risk of delays or cost overruns in organizational, systems, and operational integration during the SEIYU integration process
• Intensifying consumer thrift consciousness and selective spending due to price increases and stagnant real wages
• Cost increases and pressure on profitability from rising energy prices and labor costs
• Risk of fresh food price spikes and procurement cost volatility due to abnormal weather
• Long-term contraction of the consumption market due to Japan's declining population and aging society
• Worsening consumer sentiment amid global economic uncertainty stemming from U.S. trade policy and heightened geopolitical risk