HALOWS CO.,LTD.
2742・Prime Market・Retail Trade
Merchandise retail business (single segment)
A single-segment company operating 24-hour food supermarkets across seven Seto Inland Sea coastal prefectures
| Period | Current | Previous | Change |
|---|---|---|---|
| Operating revenue (Q1 cumulative) | ¥57,876 million | ¥53,996 million | ↑ |
| Net sales (Q1 cumulative) | ¥56,191 million | ¥52,502 million | ↑ |
| Operating profit (Q1 cumulative) | ¥2,728 million | ¥3,047 million | ↓ |
| Ordinary profit (Q1 cumulative) | ¥2,747 million | ¥3,059 million | ↓ |
| Net income attributable to owners of parent (Q1 cumulative) | ¥1,977 million | ¥2,131 million | ↓ |
| Operating margin (Q1 cumulative) | 4.7% | 5.6% | ↓ |
| Net income per share (quarterly) | ¥92.64 | ¥99.65 | ↓ |
| Total assets | ¥137,028 million | ¥136,010 million | ↑ |
| Net assets | ¥78,974 million | ¥77,739 million | ↑ |
| Equity ratio | 57.4% | 57.0% | ↑ |
| Number of stores | 114 stores | 113 stores | ↑ |
| Full-year operating revenue forecast | ¥245,622 million | ¥225,719 million | ↑ |
| Full-year operating profit forecast | ¥12,590 million | ¥12,473 million | ↑ |
Business Details
The company operates 24-hour food supermarkets in the 600-tsubo and 450-tsubo sales floor formats across seven prefectures: Hiroshima, Okayama, Kagawa, Ehime, Tokushima, Hyogo, and Yamaguchi. Its basic strategy is dominant-area store openings targeting suburban and urban residential areas, with open-mall-type NSCs (neighborhood shopping centers combined with non-supermarket tenants) as its core store format. It sells fruits and vegetables, fresh fish, prepared foods, meat, dairy products, and general grocery items, achieving low-cost, stable supply through integrated management of manufacturing, logistics, and sales. As of the end of Q1 of FY2027 (ending February 2027), it operated 114 stores.
Recent Overview
Revenue increased but operating profit fell 10.5% year on year due to higher personnel and depreciation costs
In Q1 of FY2027 (ending February 2027) (March–May 2026), operating revenue increased to ¥57,876 million (up 7.2% year on year), but operating profit declined sharply to ¥2,728 million (down 10.5% year on year). The main causes were an increase in salaries and bonuses from ¥4,965 million to ¥5,539 million (due to base pay increases for full-time and contract employees implemented in April 2026), an increase in depreciation from ¥1,138 million to ¥1,351 million, and an increase in repair expenses from ¥299 million to ¥430 million. In April 2026, the company opened a new store, Jike, in Higashihiroshima City, Hiroshima Prefecture, bringing the total to 114 stores. The full-year earnings forecast (operating revenue of ¥245,622 million and operating profit of ¥12,590 million) remains unchanged.
Key Products
Growth Drivers
- Expansion of sales scale through continued new store openings (Jike store opened in Q1 of FY2027 (ending February 2027), bringing the total to 114 stores)
- Steady existing-store sales driven by heightened consumer cost-consciousness amid rising prices
- Increase in operating revenue including rental income (Q1: ¥1,684 million, up 12.8% year on year)
- Dominant-area store opening strategy under the medium-term management plan "Setouchi 2814 Plan," targeting 140 stores and ¥280.0 billion in operating revenue by FY2030 (ending February 2030)
- Productivity improvements through operational efficiency initiatives such as expanding automated ordering systems
- Improved gross margin through increased share of private brand products
Risks
- Upward pressure on SG&A expenses from rising personnel costs (base pay increases for full-time and contract employees implemented in April 2026), with salaries and bonuses up 11.6% year on year
- Margin decline due to increased fixed costs such as depreciation and rent associated with new store openings and renovations (Q1 operating margin of 4.7%, down from 5.6% in the same period last year)
- Impact on existing-store sales from overstoring and intensifying competition in the food supermarket industry
- Market contraction risk due to population decline and aging/low birthrate demographics
- Rising merchandise costs from international geopolitical risk and raw material price increases, alongside continued consumer preference for low prices
- Rising store maintenance costs, including a 43.8% year-on-year increase in repair expenses
Last updated: May 25, 2026