ENVALITH
株式会社アップガレージグループ logo

UP GARAGE GROUP Co., Ltd.

7134・Standard Market・Retail Trade

Official website
株式会社アップガレージグループ logo
UP GARAGE GROUP Co., Ltd.7134

Business

UP GARAGE GROUP Co., Ltd. operates a Reuse business (directly-operated / FC / EC) centered on the purchase and sale of car & motorcycle accessories, as well as a distribution and wholesale business utilizing the order platform NEXLINK (order platform). In the Reuse business, the company operates 7 brands led by "UP GARAGE," with a total of 196 directly-operated and FC locations (281 store-brand count) across 45 prefectures nationwide. In the distribution and wholesale business, the company operates the "Tire Distribution Center" (209 affiliated stores) and an "order platform for chain-operating companies," conducting business with over 690 car accessory manufacturers. Through an OMO strategy combining an in-house developed core system, EC site, and smartphone app, the company has built customer touchpoints that fuse physical stores with digital channels. It also operates 2 stores in California, USA, and is proceeding with global expansion.

Business Model

In the Reuse business (directly-operated / FC / EC), the company builds up revenue from gross profit on merchandise purchasing and sales at directly-operated stores, plus FC royalties (a fixed rate applied to monthly sales) and commission income from the mall-type EC site "upgarage.com". In FY2026 (ending March 2026), the EC sales composition ratio for the chain as a whole reaches 23.3%. In the distribution/wholesale business, the company earns revenue from wholesale transactions (net sales of ¥6,048 million) conducted via "NEXLINK (order platform)". The cyclical model of purchasing → merchandising → databasing → selling supports inventory efficiency and gross margin, and has achieved a continuous decline in the SG&A expense ratio.

Company Strengths

The company has developed in-house its core system (sales/inventory management, purchase appraisal), mall-type EC site, smartphone app, and order platform NEXLINK (order platform), organically linking store operations with EC. In FY2026 (ending March 2026), the EC sales composition ratio reached 23.3% (up from 14.4% in FY2013, ending March 2013), boosting the competitiveness of the entire chain including franchise stores.

The company operates seven brands, including UP GARAGE, UP GARAGE RIDERS, and UP GARAGE WHEELS, across a combined total of 196 directly-operated and FC locations (281 store-brand count), covering all 45 prefectures nationwide. In FY2026 (ending March 2026), the company achieved 10 new directly-operated store openings, significantly exceeding the annual plan of 5 stores, while existing-store sales remained strong at 105.4% year on year.

The Tire Distribution Center, built around the order platform NEXLINK (order platform), expanded to 209 stores as of the end of FY2026 (ending March 2026), an increase of 9 stores from the previous fiscal year-end. With a trading base of more than 690 car-accessory manufacturers, the company centralizes order, delivery, and payment management for member stores, generating high switching costs. Sales in the distribution wholesale business continued to grow steadily, reaching ¥6,048 million (up 6.6% year on year).

ENVALITH's Perspective

As an external factor, continued inflation and price increases for new car accessories are driving structural expansion in reuse demand, and net sales for FY2026 (ending March 2026) reached ¥15,384 million (up 10.0% year on year), achieving five consecutive years of revenue growth. On the other hand, SG&A expenses expanded to ¥5,058 million (up 11.5% year on year), outpacing sales growth, due to factors including higher starting salaries for new graduates, revisions to the salary table for younger employees, and strengthened hiring in line with accelerated store openings. The operating margin declined to 7.2% (7.5% in the previous period), and margin pressure during this store-opening investment phase may continue into FY2027 (ending March 2027).

The company's forecast calls for substantial profit growth, with net sales of ¥17,000 million (up 10.5% year on year) and operating profit of ¥1,400 million (up 26.8% year on year). This is premised on plans to open 7 new directly-operated stores and 10 new FC stores, along with continued sales growth at existing stores. However, in FY2026 (ending March 2026), the increase in SG&A expenses (11.5%) exceeded the sales growth rate (10.0%) due to rising personnel and store-opening costs. Achieving the forecast will require both accelerating sales growth and improving cost efficiency, and progress should be monitored on a quarterly basis.

The company opened its second store in California, USA (the Ontario store) in November 2025, continuing its overseas expansion, but the contribution to earnings remains limited at this stage. Domestically, structural challenges remain, including risks of violations of the Secondhand Articles Business Act and the Act on Specified Commercial Transactions, personal information leak risk, and governance risk stemming from concentrated ownership among major shareholders. The transformation of the used auto parts market driven by EV adoption and technological innovation in automobiles is also a medium- to long-term point to watch, and the sustainability of the business model must be continually assessed alongside efforts to secure a stable supply of reuse goods.

Growth Strategy

Domestic store rollout acceleration, overseas expansion, and DX-driven circular model aim for net sales of ¥20,740 million (FY2029, ending March 2029)

In FY2026 (ending March 2026), the company opened 10 new stores, significantly exceeding the annual plan of 5 stores, achieving 78 directly-operated stores by fiscal year-end. For FY2027 (ending March 2027), the company plans to open 7 new directly-operated locations. Customer traffic centered on used tire and wheel sales has been increasing steadily, and accelerated store openings are the main driver of sales growth.

The number of FC stores reached 201 as of the end of FY2026 (ending March 2026). For FY2027 (ending March 2027), the company plans to open 10 new FC locations. Royalty income, EC commissions, and ancillary income have been growing steadily as the number of franchise stores increases, functioning as an asset-light model for revenue expansion.

The company is advancing an OMO strategy that integrates physical stores and EC by conducting member-only in-store discount campaigns, distributing exclusive coupons, and encouraging store visits via push notifications. This has contributed to achieving existing-store sales of 105.4% year on year, with the fusion of digital and physical stores enhancing customer convenience and supporting continued growth in customer traffic.

The number of Tire Distribution Center franchise stores reached 209 as of the end of FY2026 (ending March 2026). NEXLINK (order platform) is performing well, driven by an increase in new business partners and greater transaction volume with existing partners. The company aims to improve gross margin through volume discounts on procurement prices as transaction volume grows, while also expanding system commission income.

The company opened its Ontario, California store (second US location) in November 2025. While focusing on expanding profitability with the current two-store setup, the company plans to open a third store at an early stage. Overseas expansion is still in its early stages, and its contribution to earnings remains limited, but it is positioned as a mid- to long-term growth option.

Last updated: July 19, 2026