AEON KYUSHU CO.,LTD.
2653・Standard Market・Retail Trade
Business
AEON Kyushu Co., Ltd. is a comprehensive retail company that, as a core regional company of the AEON Group in the Kyushu area, operates primarily supermarkets, discount stores, and general merchandise stores (SM, DS, GMS), alongside home centers (HC) and drug & food stores (AEON Welcia Kyushu). Established in 1972 as Fukuoka Jusco, the company expanded its business base across the entire Kyushu region following its merger with Maxvalu Kyushu and AEON Store Kyushu in 2020. As of the end of FY2026 (ending February 2026), it operated 340 stores, handling a wide range of products including apparel, food, home and leisure goods, home center merchandise, and pharmaceuticals. Its main customers are general consumers residing in Kyushu, and it has a life-oriented business structure in which food sales account for approximately 79% of its sales composition.
Business Model
Merchandise sales of apparel, food, and daily necessities serve as the primary revenue source, supplemented by rental income (¥17,207 million in FY2026 (ending February 2026)) from tenant management and operation within shopping centers. The structure secures customer traffic through price appeal such as the AEON Group's private brand "Topvalu" and "Shiawase Plus (Ouen Kakaku)" discount pricing, while increasing purchase frequency through digital promotions via the iAEON app, WAON, and other tools. The company also aims to improve its cost structure by enhancing labor productivity per hour through DX investments (self-checkout registers, electronic shelf labels).
Company Strengths
Consolidated operating revenue for FY2026 (ending February 2026) was ¥547,145 million, with net sales of ¥520,588 million, surpassing ¥500 billion for the first time. The company operates 340 stores across the entire Kyushu region and has established one of Kyushu's largest retail platforms following mergers with Maxvalu Kyushu and AEON Store Kyushu. The company continues to expand its scale through M&A, having implemented an absorption-type merger with Joyfulsun and made Tokiwa Industry (23 stores in Oita Prefecture) a wholly owned subsidiary in March 2026.
Self-checkout registers have been introduced at 271 stores and electronic shelf labels at 242 stores, alongside the promotion of AI utilization such as AI Nebiki (AI-based pricing) and AI Shift (AI-based scheduling). As a result, labor productivity improved steadily on a year-on-year basis, rising from 102.0% in the first quarter to 108.4% in the fourth quarter, achieving 104.7% year-on-year for the full year. The ratio of selling, general and administrative expenses to net sales improved by 0.3 percentage points year on year.
The number of iAEON app members (favorite store registrations) exceeded 1.27 million (up 430,000 year on year) at the end of FY2026 (ending February 2026). AEON Pay payment value expanded rapidly, reaching 148.9% year on year. The number of Gaccha Coupon uses increased to 122.2% year on year, and coupon-related sales rose to 129.0% year on year, with digital sales promotion contributing to an uplift in existing store sales.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, rising from ¥460,925 million in FY2022 to ¥520,588 million in FY2026. The full-year forecast for FY2027 (ending February 2027) stands at ¥600,000 million (up 9.7% year on year), with growth accelerating due to M&A effects. On the other hand, net income peaked at ¥7,025 million in FY2024, followed by a continued declining trend to ¥6,035 million in FY2025 and ¥5,971 million in FY2026. In the first quarter of FY2027 (ending February 2027), operating revenue was ¥135,893 million (up 3.0% year on year) and operating profit was ¥655 million (up 18.3% year on year), showing improvement at the operating level. However, due to an increase in interest expenses (reflecting external factors such as rising interest rates and an expanding outstanding loan balance) and the disappearance of the prior-year gain from the recovery of leasehold deposits, ordinary profit declined to ¥489 million (down 15.5% year on year) and net income attributable to owners of the parent fell to ¥478 million (down 7.0% year on year). Four consecutive years of substantial wage increases, DX investment, and M&A-related expenses have pushed up SG&A expenses, and the company remains in a phase of upfront investment.
Growth Strategy
Aiming to become the No.1 retail company in Kyushu through rapid store openings of growth formats, M&A, and deepening of DX
Rapid rollout of urban small-format supermarkets centered on Fukuoka City. As of the end of May 2026, the format reached 25 stores, with quarterly sales up 127.1% year on year, showing strong performance. The company is promoting the development of an even smaller store model and focusing on improving operational efficiency through team-based operation with neighboring stores.
A drug & food format operated by AEON Welcia Kyushu. As of the end of May 2026, the format reached 17 stores, with quarterly sales up 126.7% year on year. Sales of pharmaceuticals and cosmetics have grown significantly from the second year of store opening onward, reflecting the success of enhanced training for specialized staff.
On March 10, 2026, the company made Tokiwa Industry, which operates 23 stores in Oita Prefecture, a wholly owned subsidiary at an acquisition cost of ¥3,000 million. Goodwill of ¥2,924 million arose (amortized evenly over 20 years). This is scheduled to be reflected in the consolidated statement of income from the second quarter onward. Facility and equipment renewals and revitalization investments are being implemented in sequence.
Self-checkout registers have been deployed at 284 stores and electronic shelf labels at 255 stores (horizontal expansion into GMS non-food sales floors has begun). Retail media advertising revenue, leveraging digital signage at 260 stores and in-store signage at 137 stores, grew significantly, up 144.3% year on year. A new micro process center (Shunsen Koubou) was established near Fukuoka City to strengthen the product supply system for small-format stores.
The number of iAEON members exceeded 1.39 million as of the end of May 2026 (up 120 thousand from the end of the previous fiscal year). AEON Pay payment value rose 140.8% year on year, and Gaccha Coupon usage rose 126.3% year on year. Migration to the new system has been completed at all 33 net supermarket stores. The number of facilities deploying Smart NICO reached 50 (up 10 from the same period of the previous year), and Uber Eats has been introduced at 180 stores.
Last updated: July 17, 2026