Hokuyu Lucky.,Ltd.
2747・Standard Market・Retail Trade
Business
Hokuyu Lucky Co., Ltd. is a Hokkaido-based supermarket company founded in 1971, with the current corporate name adopted in 1982. The company operates 33 stores across Hokkaido, centered on Sapporo City and its surrounding area, and including the Doto, Dohoku, Donan, and Shiribeshi regions (as of the end of February 2025). Its mainstay format is the SSM (super supermarket) format, selling perishable foods as its core offering along with general groceries and family apparel. The main customer base is centered on senior citizens aged 50 and above, but the company is also focusing on developing the next generation of family customers in their 30s and 40s. It is dual-listed on the Tokyo Stock Exchange Standard Market and the Sapporo Securities Exchange Main Board.
Business Model
A retail model specializing in food, with foodstuffs accounting for approximately 91% of sales. Fresh fish, prepared foods (delicatessen), and meat processing are consolidated at the Lucky Fresh & Deli Center, which began operations in November 2021, achieving both stable supply to each store and cost reduction. The company aims to raise average customer spending through its 6MD merchandising policy (Tasty, Natural, Just-Right Portion Packs, Quick, Local Marché, and Power Price) as a differentiation axis. The gross profit margin is 27.5% (FY2026, ending March 2026).
Company Strengths
In November 2021, the company newly established the Lucky Fresh Food and Delica Center building in Zenibako, Otaru City, consolidating fresh fish, prepared foods, and meat processing. From March 2022, it began manufacturing and supplying processed meat products. According to the securities report, consolidating individual cooking and processing operations previously conducted at each store into the center has achieved cost reduction, and improved utilization rates have significantly contributed to operational efficiency.
Centered on 21 stores within Sapporo City, the company operates a total of 33 stores, including locations in eastern Hokkaido (Abashiri, Monbetsu, Bihoro, Engaru, Kunneppu, Ozora, Yubetsu), northern Hokkaido (Wakkanai), southern Hokkaido (2 stores in Hakodate), and Shiribeshi (Iwanai, Kutchan). Since its founding in 1971, the company has continued to open stores rooted in Hokkaido for over 50 years, fulfilling a role as a regional lifeline.
In FY2026 (ending February 2025), against a planned net sales of ¥36,900 million, actual net sales were ¥36,912 million (100.0% of plan), and against a planned ordinary profit of ¥180 million, actual ordinary profit was ¥205 million (113.9% of plan), achieving results that exceeded the medium-term management plan targets even amid a challenging business environment.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods has remained flat within a range of ¥36,913 million to ¥38,965 million. Operating profit peaked at ¥510 million in FY2024, then declined sharply to ¥243 million in FY2025 and ¥230 million in FY2026, indicating a clear deterioration in profitability. For the cumulative first quarter of FY2027 (ending February 2027) (March–May 2026), revenue was ¥9,039 million (±¥0 million year on year), while the operating loss widened to ¥43 million (versus a loss of ¥36 million in the same period the previous year). As an external factor, persistently high energy and raw material prices are squeezing gross margins, though utility costs showed some improvement, decreasing by ¥32 million year on year. An increase in depreciation expense (up ¥14 million year on year) continues to be a cost-push factor, and achieving the full-year forecast (operating profit of ¥360 million) will require a substantial profit recovery in the second half.
Growth Strategy
Strengthening profitability through four pillars: deepening 6MD, leveraging the center, developing the family customer segment, and low-cost operations
Focus on two pillars—Tasty Lucky (high-quality products) and Natural Lucky (organic ingredients)—to build a competitive advantage over rivals through quality appeal. The Food Coordination Department is combining new product development with store renovations to promote easy-to-shop store layouts.
Since commencing operations in 2021, the utilization rate has been progressively increased, and cost reductions through concentrated mechanization of product manufacturing continue. Establishing a product supply system leveraging the center is positioned as a core measure for improving gross margin.
In addition to strengthening the customer base through the d POINT program introduced in 2024, the company is combining in-store menu suggestion video distribution and SNS information dissemination to enhance store loyalty. The cashless payment ratio was 65.0% as of the end of May 2026 (down 3.0 percentage points from 68.0% at the same point the previous year).
Installation of semi-self and full-self checkout registers and replacement of cashless payment terminals has been completed at all stores. The company continues to promote operational automation, including automated product ordering, and optimization of working hours; in the cumulative first quarter, this contributed to a ¥5 million year-on-year decrease in salaries and allowances.
Aims to strengthen profitability and improve the equity ratio through execution of the mid-term management plan. The equity ratio at the end of the first quarter of FY2027 (ending February 2027) was 32.9%, down from 34.0% at the end of the previous fiscal year, making improvement through profit accumulation a key challenge. Long-term borrowings decreased by ¥123 million compared to the end of the previous fiscal year, indicating progress in repayment.
Last updated: July 17, 2026