Alleanza Holdings Co., Ltd.
3546・Prime Market・Retail Trade
Business
Arenza Holdings is a retail group holding company centered on the home center business (DAIYU8, Time, Home Center Valor) and the pet specialty store business (Amigo), with peripheral businesses including import wholesale, renovation, and agricultural direct sales. It has its main bases in Tohoku (Fukushima Prefecture), Tokai (Aichi Prefecture, etc.), and Kansai, operating 303 stores as of the end of FY2026 (ending March 2026, February fiscal year-end noted as such). Its parent company is Valor Holdings Co., Ltd., and in February 2026 it entered into a capital and business alliance agreement with Kohnan Shoji Co., Ltd. Its main customers are general consumers (DIY, gardening, and pet enthusiasts) as well as corporate and professional craftsman customers (via Pro-Site Store), and it plays a role as regionally rooted lifestyle infrastructure.
Business Model
Each subsidiary operates home centers or pet specialty stores, generating revenue from merchandise sales (PB and NB products), EC, and services such as grooming. Within the group, Arenza Japan handles import wholesale, contributing to reduced procurement costs. The company is strengthening its earnings structure by raising the sales ratio of PB products (target: 20%), improving gross margin through appropriate pricing policies, reducing advertising costs by shifting to digital promotion, and optimizing inventory and logistics costs through automated ordering and utilization of distribution centers.
Company Strengths
In September 2024, the group's pet business was integrated into Amigo Co., Ltd., and 10 new stores were opened in FY2026 (ending February 2026) (5 Amigo, 2 Pet Forest, 3 Joker). Segment revenue reached ¥28,900 million, up 13.4% year on year. Under "Challenge500," the company has set a target of ¥50.0 billion in sales and the No. 1 position among pet shops in Japan by 2030, and continues to pursue dominant-area store openings.
In February 2026, the company entered into a capital and business alliance agreement with Kohnan Shoji Co., Ltd. The simple combined sales of the two companies would rank at the top of the home center industry, and the alliance is expected to bring phased integration of private-brand product planning, development, and supply functions into Kohnan Shoji, mutual utilization of logistics bases, and cost reductions through joint procurement. Combined with the existing collaboration with parent company Valor Holdings, the group's procurement capabilities continue to strengthen.
In FY2026 (ending February 2026), consolidated operating profit rose significantly to ¥4,098 million (up 16.8% year on year), ordinary profit to ¥4,574 million (up 15.7%), and net income attributable to owners of parent to ¥2,544 million (up 21.8%). DAIYU8's operating profit increased 180.2% year on year, and Home Center "Time"'s operating profit increased 92.2%, reflecting successful efforts to reduce selling, general and administrative expenses. This profit improvement was achieved despite a 1.8% year-on-year decline in sales, demonstrating the results of the company's profit structure reforms.
ENVALITH's Perspective
Performance Trend
Operating revenue was ¥150,601 million (down 1.8% year on year), marking a second consecutive year of revenue decline. On a net sales basis as well, revenue decreased to ¥146,093 million (from ¥148,908 million in the previous period). As an external environment factor, a decline in customer traffic continued across all segments, driven by consumers' increasingly frugal mindset and stagnant real wages. On the other hand, gross margin improved through MD (merchandising) reform (gross profit of ¥52,917 million, up from ¥51,012 million in the previous period), and SG&A expenses were controlled (¥53,327 million, up from ¥51,939 million, with the increase in gross profit exceeding the increase in SG&A expenses). As a result, profit increased at every stage: operating profit of ¥4,098 million (up from ¥3,509 million in the previous period), ordinary profit of ¥4,574 million (up from ¥3,953 million), and profit attributable to owners of parent of ¥2,544 million (up from ¥2,088 million). Impairment losses also shrank to ¥490 million (from ¥946 million in the previous period). Looking at the five-year trend, operating profit had been on a declining trend since peaking at ¥6,281 million in FY2022, but FY2026 shows signs of a reversal.
Growth Strategy
MD reform, expansion of Pet Business, and realization of alliance synergies with Kohnan Shoji toward achieving Challenge3000
With the realization of a 20% PB product sales ratio and the cultivation of region-leading products as key priorities, the company suppresses unnecessary price cuts through an appropriate pricing policy that avoids deviation from market prices. In FY2026 (ending March 2026), improvement in the gross profit margin was confirmed numerically, contributing to enhanced profitability.
Dominant store openings continue under the three brands Amigo, Pet Forest, and Joker. In FY2026 (ending March 2026), 10 new stores were opened, bringing the cumulative total to 303 stores. Segment operating revenue maintained high growth of up 13.4% year on year, but profit is being squeezed by store opening costs, making profitability improvement the next challenge.
The company aims to improve distribution center profitability through excess inventory reduction, volume leveling, and logistics infrastructure development, while enhancing labor productivity through company-wide operational efficiency and improvement activities. This contributed to a significant improvement in operating cash flow to ¥10,432 million in FY2026 (ending March 2026) (from ¥7,172 million in the previous period).
The company is promoting the phased integration of PB planning and supply functions, collaboration in the Pet Business (know-how provision, tenant/joint store openings), optimization of distribution bases, joint purchasing, and joint consideration of core systems. Full-scale progress is expected under the joint ownership structure of Kohnan Shoji (approximately 49.4%) and Valor Holdings (approximately 50.6%) after completion of the delisting and squeeze-out.
EC sales grew year on year at both DAIYU8 and Home Center Valor. The company is strengthening its revenue base in digital channels by promoting early introduction of new products, expansion of product lineup, and same-day shipping support (DAIYU8), as well as expanding products eligible for next-day delivery on morning orders and addressing corporate demand (Home Center Valor).
Last updated: July 19, 2026