DAIKOKUTENBUSSAN CO.,LTD.
2791・Prime Market・Retail Trade
Business
Daikokuten Bussan Co., Ltd. is a retail company headquartered in Kurashiki City, Okayama Prefecture, with food supermarket operations as its core business. Under formats such as "Dio" and "La Mu", it operates multiple stores centered on the Chugoku, Shikoku, Kansai, Kyushu, Hokuriku, and Tokai regions. As a group including 19 consolidated subsidiaries, in addition to the supermarket business, it has a vertically integrated business structure encompassing the manufacturing of dairy products, noodles, and marine products, agriculture, and the import and sale of store fixtures. Its main customers are cost-conscious local consumers, and its management philosophy is to contribute to local communities by reducing food expenditure, based on the concept of "a store where you can shop cheaper than anywhere else." Net sales for FY2025 (ended May 2025) reached ¥292,940 million, and the company has grown to an annual sales scale of approximately ¥300 billion over roughly 40 years since its founding in 1986.
Business Model
Under the ESLP (Everyday Same Low Price) strategy, the company combines the construction of proprietary logistics and temperature-controlled logistics networks, cost reduction in store openings and operations through the SFO (Sales Floor Only) format, and the rollout of the private brand "D-PRIDE" to offer high-quality, low-price products. Through rapid multi-store expansion, the company raises the utilization rate of its distribution centers, and by pursuing mass merit (scale benefits), it expands sales scale while maintaining profitability. The target management indicators are ROE of 10% or higher and ROA of 15% or higher.
Company Strengths
In an environment where consumers maintain heightened cost-consciousness, the ESLP strategy, which positions the company as offering the lowest prices in each region, has sustained customer traffic. Retail segment sales for FY2025 (ended May 2025) grew steadily to ¥291,807 million (up 8.6% year on year), and sales per square meter for the period reached ¥818,600 (101.5% of the prior-year level).
In FY2025 (ended May 2025), the company opened 19 new stores (3 in Shiga; 2 each in Aichi, Tokushima, and Ishikawa; 1 each in 12 other prefectures), including its first store in Toyama Prefecture, continuing to expand its store network into new areas. Of total capital expenditure of ¥20,406 million, ¥17,919 million was related to new store openings, reflecting continued aggressive investment in store expansion.
The company has established distribution centers in the Chugoku, Kansai, Chubu, and Kyushu regions, enabling the shortest-route temperature-controlled logistics from production areas. With manufacturing subsidiaries covering dairy products (Hotei Milk Industry), noodles (Okayama Instant Noodle), marine products (Olive Suisan), and agriculture (Mizutabaru Farm), the company has built a vertically integrated system that both improves the freshness of perishable goods and reduces costs.
ENVALITH's Perspective
Performance Trend
Revenue increased for the fifth consecutive fiscal period, from ¥224,150 million in FY2022 to ¥319,208 million in FY2026 (up 9.0% year on year). On the other hand, operating profit in FY2026 fell 46.0% year on year to ¥5,297 million from ¥9,812 million in the prior period, and net income also declined 46.8% year on year to ¥3,603 million from ¥6,774 million. The main causes were a sharp increase in depreciation and personnel expenses accompanying aggressive store openings (25 new stores) and higher store opening costs due to rising construction costs. External factors—soaring raw material prices, yen depreciation, higher energy costs, and minimum wage increases—also pushed up selling, general and administrative expenses. A change in the estimate of asset retirement obligations (which reduced profit by ¥487 million) also had an impact. For FY2027, the company forecasts a substantial recovery, with revenue of ¥344,100 million and operating profit of ¥7,400 million.
Growth Strategy
Pursuing both scale and profitability simultaneously through rapid multi-store expansion, SFO format expansion, and strengthened in-house logistics
In FY2026 (ending May 2026), the company opened 25 new stores (including first entries into Yamanashi and Oita prefectures). For FY2027 (ending May 2027), it plans to open 10 new stores. The increase in store count is expected to raise utilization at both the China and Kansai centers, achieving cost reductions through the dispersion of fixed costs.
Of the 25 new stores opened in FY2026 (ending May 2026), 7 were opened in the SFO format, reducing both store opening costs and store operating costs compared to conventional formats. This is positioned as a profitability improvement measure amid rising construction costs, and further expansion is planned going forward.
The company is pursuing both improved freshness of perishable food items and reduced logistics costs by realizing the shortest possible temperature-controlled distribution routes from production areas. Capital expenditures on tangible fixed assets in FY2026 (ending May 2026) rose sharply to ¥26,293 million from ¥16,270 million in the previous period, reflecting ongoing infrastructure investment.
The company is promoting D-PRIDE, its in-house developed line of high-quality, low-priced products refined through thorough content "analysis" (analyze) and repeated improvement, aiming to achieve both price competitiveness and improved gross margin. This serves as a differentiation strategy amid heightened consumer thrift-mindedness.
In FY2026 (ending May 2026), the company renovated the Karato store and changed its format to The Daikokuten. For FY2027 (ending May 2027), it plans to renovate 15 existing stores, aiming to maintain and enhance the competitiveness of existing locations.
Last updated: July 17, 2026