Pan Pacific International Holdings Corporation
7532・Prime Market・Retail Trade
Business
Pan Pacific International Holdings Corporation is a pure holding company whose business concept is "Big Convenience & Discount Store." Led by its core subsidiary Don Quijote Co., Ltd., the group comprises 73 consolidated subsidiaries, including UNY (General Merchandise Store), Kanemi Foods (prepared foods and boxed lunch manufacturing), Gelson's, QSI, and MARUKAI in North America, and DON DON DONKI in Asia. As of the end of June 2025, the company operated 655 domestic stores and 124 overseas stores, totaling 779 stores, organized into three segments: Domestic Discount Store, General Merchandise Store, and Overseas Retail. In addition to domestic general consumers, inbound tourists visiting Japan (from over 200 countries and regions) constitute an important customer segment. Consolidated net sales reached ¥2,246,758 million (FY2025, ending June 2025), having first surpassed ¥2 trillion in FY2024 (ending June 2024).
Business Model
The company captures customer purchasing motivations along three axes—'convenience (CV)', 'cheapness (D)', and 'fun (A)'—and offers a unique shopping experience through highly entertaining sales floor presentations and compressed merchandise displays. Its core profit driver is the gross margin on merchandise sales, with a structure designed to improve gross margin ratio through the expansion of PB/OEM products (an OEM conversion strategy for standard items). Delegation of authority based on an individual-store, on-site-focused philosophy enables product assortments tailored to local needs, while the majica app (15 million members) contributes to earnings by driving repeat customer acquisition and raising average spend per customer.
Company Strengths
Revenue grew for 5 consecutive periods, from ¥1,708,635 million in FY2021 (ending June 2021) to ¥2,246,758 million in FY2025 (ending June 2025). Operating profit also expanded approximately twofold over the same period, from ¥81,306 million to ¥162,296 million. In FY2025 (ending June 2025), the company continued to achieve revenue and profit growth, with revenue up 7.2% year on year and operating profit up 15.8% year on year.
The company attracts inbound tourists from over 200 countries and regions, driving significant growth in tax-free sales. Discount Store sales grew markedly in tourist destinations and urban areas, with Tokyo up 122.1% year on year, Osaka up 116.2%, and Okinawa up 119.6%. Initiatives such as pre-trip (Tabimae) promotions have proven effective, raising the sales share attributable to inbound tourists.
The company launched its proprietary electronic money service "majica" in March 2014, reaching 10 million members in August 2022 and 15 million members in July 2024. Member-exclusive initiatives such as "Maji Kakaku" (seriously low prices) and "Maji Kangen Sai" (seriously big rewards campaign) have contributed to repeat customer acquisition and higher average spend per customer. The domestic existing-store sales growth rate remained stable, up 5.9% for the full fiscal year and up 4.4% for the interim period under review.
ENVALITH's Perspective
Performance Trend
The company achieved five consecutive periods of increased revenue and profit from FY2021 through FY2025, and the increase trend has continued into the cumulative nine-month period of Q3 FY2026 (ending June 2026), with revenue of ¥1,826,534 million (up 8.2% year-on-year), operating profit of ¥137,521 million (up 6.9% year-on-year), and net income attributable to owners of the parent of ¥93,966 million (up 23.8% year-on-year). The fact that net income growth significantly exceeded revenue and operating profit growth was due to the swing from a foreign exchange loss of ¥3,529 million recorded in the same period of the prior year to a foreign exchange gain of ¥3,445 million in the current period, as well as a substantial decrease in extraordinary losses (from ¥6,064 million to ¥3,728 million). As an external factor, continued price inflation is pushing up unit sales prices for food and daily necessities, while rising personnel costs from minimum wage increases are pushing up SG&A expenses, leaving limited room for improvement in the operating profit margin. The equity ratio improved from 40.1% to 43.9%, indicating improved financial soundness as well.
Growth Strategy
Driving the achievement of "Double Impact 2035" through a three-pronged approach combining new business formats, M&A, and overseas expansion
A new "food-enhanced Don Quijote" format that combines Uny's fresh food procurement capabilities with Don Quijote's non-food merchandising strength and "Kyoyasu" (surprisingly cheap) DNA. A strategy announcement was made in March 2026, and development of new private-brand products under the concept of "Safe, Value, Speed, Fun" is also being promoted. The integration of the Olympic Group is expected to accelerate area-wide rollout in the Kanto region.
A share exchange agreement was concluded on April 6, 2026, and Olympic Group Co., Ltd. is scheduled to become a wholly owned subsidiary with an effective date of July 1, 2026. The Company will allot 1.18 shares of its common stock for each share of Olympic Group common stock (utilizing 27,105,250 treasury shares). The primary objectives are to convert stores in the metropolitan area to "Don Quijote" and other formats and to accelerate the rollout of "Robin Hood."
In the North America Business, operating profit increased 6.2% year on year, driven by personnel cost reductions through workforce reallocation and labor hour management. The Asia Business saw a sharp recovery, with operating profit up 222.3% year on year, driven by the closure of unprofitable stores, the introduction of self-checkout registers, and multitasking of operations. During the cumulative nine months of the current fiscal year, 4 new overseas stores were opened (3 in the United States, 1 in Thailand), expanding the overseas store count to 123 as of the end of March 2026.
In the first quarter, Kanemi Foods Co., Ltd., previously an equity-method affiliate, became a consolidated subsidiary under the substantive control criterion after the Company's voting rights ratio rose to 40.3% following the company's acquisition of treasury shares. Goodwill of ¥1,699 million arose in the Domestic Business segment. The internalization of food manufacturing and sales functions is expected to strengthen product competitiveness and improve cost management.
Continued strengthening of member-exclusive initiatives through the majica app aims to increase repeat customer acquisition and average spend per customer. This has contributed to achieving a 4.7% year-on-year increase in existing-store sales, and efforts continue to improve the precision of promotional measures linked with digital marketing.
Last updated: July 17, 2026