Eco's Co.,Ltd.

Business Details

Centered on Ecos Co., Ltd., consolidated subsidiaries including Tairaya Co., Ltd., Yono Food Center Co., Ltd., Masuda Co., Ltd., and Coco's Nakamura Co., Ltd. operate a food supermarket business selling fresh foods, general foods, daily sundries, and other items. Under the corporate motto of "honest business practice," the company's basic management policy emphasizes safety, peace of mind, and freshness in the products it provides, as well as contributing to regional food culture. As of the end of May 2026, the company operated 138 stores. Other businesses such as leasing, wholesale, and logistics are also included, but the food supermarket division accounts for the vast majority of revenue, constituting a single segment.

Recent Overview

Q1 operating revenue and income both slightly below prior-year levels; full-year forecast maintained

In the first quarter of FY2027 (ending February 2027) (March to May 2026), operating revenue was ¥34,879 million (down 0.9% year on year), operating income was ¥1,532 million (down 0.2%), ordinary income was ¥1,553 million (down 1.4%), and quarterly net income attributable to owners of parent was ¥1,030 million (down 4.1%), with all indicators falling below the same quarter of the prior year. This was against a backdrop of intensified consumer thrift consciousness due to rising prices and a continued competitive environment. On the other hand, with the new opening of TAIRAYA Yamato-da store (Hachioji City, Tokyo), the number of stores increased to 138. As a measure to address rising prices, the company newly launched "Price Select (Purasere)." There is no change to the full-year earnings forecast (operating revenue of ¥138,000 million, operating income of ¥5,500 million).

Key Products

Growth Drivers

• Expansion of the store network through new store openings (such as TAIRAYA Yamato-da store) and revitalization of existing stores through renovations of stores such as TAIRAYA Yamagata store and TAIRAYA Machiya store
• Promotion of customer traffic and response to consumers' increased thrift consciousness through the new price-hike response initiative "Price Select (Purasere)"
• Differentiation and gross margin improvement through strengthening the lineup of the private brand "Natulive"
• Strengthening of product competitiveness through development and sourcing of new and original products
• Improved operational efficiency through expanded use of automated ordering systems and promotion of multitasking among employees
• Strengthened customer acquisition through information dissemination targeting young families using social media and the official app

Risks

• Consumers' thrift consciousness is intensifying rather than easing amid rising prices, and the severe competitive environment is expected to continue
• Pressure on existing store sales due to intensifying competition that transcends industry and business format boundaries
• Cost increase pressure from persistently high raw material prices, energy prices, and labor costs
• Increased financial burden and decline in equity ratio (from 51.8% to 49.1%) associated with an increase in borrowings (long-term borrowings: fixed portion ¥6,778 million + current portion ¥5,172 million)
• Risk of additional impairment losses arising at underperforming stores
• Impact on merchandise procurement prices from unstable international conditions such as the situation in the Middle East and exchange rate fluctuations