DAIICHI CO.,LTD.
7643・Standard Market・Retail Trade
Business
Daiichi Co., Ltd. was founded in 1958 in Obihiro City, Hokkaido, and operates a community-based retail business with 26 food-focused supermarket stores across three blocks: Obihiro, Asahikawa, and Sapporo. The company is listed on the TSE Standard Market and the Sapporo Securities Exchange. Leveraging its capital and business alliance with Ito-Yokado (concluded in 2013), the company maintains its competitiveness through joint merchandise procurement, expanded sales of Seven Premium products, and shared logistics infrastructure. It also operates 20 Mobile Supermarket (Tokushimaru) vehicles, delivering groceries to those with difficulty shopping, thereby fulfilling a role as regional infrastructure. Its main customers are general consumers residing in Hokkaido, and the company is positioned as a retailer of daily necessities supporting everyday food life.
Business Model
The company procures merchandise (total ¥43,943 million, FY2025 (ending September 2025)) and generates net sales of ¥58,571 million through in-store sales of produce, seafood, meat, prepared foods, dairy, and general food products. The structure is characterized by thin margins and high sales volume, with a gross profit margin of 25.3% and an operating profit margin of 2.2%. Cost competitiveness is supplemented through expanded sales of Seven Premium products and joint procurement via the partnership with Ito-Yokado. Ancillary operations such as tenant leasing also constitute part of the revenue sources.
Company Strengths
Through the capital and business alliance concluded with Ito-Yokado in 2013, the company has expanded sales of Seven Premium products (sales in FY2025 (ending September 2025) up 120% year on year), reduced costs through joint procurement of merchandise and materials, and achieved mutual utilization of logistics and infrastructure. This has strengthened its ability to respond to customers' cost-consciousness and demand for simplicity and convenience.
The company has adopted a dominant strategy of concentrated store openings in three blocks: Obihiro (10 stores, sales of ¥22,736 million), Asahikawa (7 stores, sales of ¥14,266 million), and Sapporo (9 stores, sales of ¥21,566 million). It achieved the "¥20 billion structure in the Sapporo area" set forth in its medium-term management plan in FY2025 (ending September 2025).
As of the end of FY2025 (ending September 2025), the equity ratio stood at 63.0%, with net assets of ¥17,214 million. Cash and cash equivalents were maintained at ¥7,011 million. The balance of long-term borrowings was extremely low at ¥41 million, and a loan commitment of ¥3,000 million was also secured. The company's financial soundness is at a high level even within the industry.
ENVALITH's Perspective
Performance Trend
Revenue has continued on an expansionary trend, growing from ¥44,015 million in FY2021 to ¥58,571 million in FY2025. In FY2025, operating profit fell to a five-year low of ¥1,309 million due to increased costs from new store openings, but in the first half of FY2026 (ending September 2026), the absence of new store opening costs and thorough inventory management and loss reduction led to a substantial recovery: operating profit of ¥1,013 million (up 31.7% year-on-year), ordinary profit of ¥995 million (up 30.5%), and interim net profit of ¥675 million (up 21.9%). As an external factor, rising food and beverage prices have pushed up revenue. The full-year forecast remains unchanged at revenue of ¥61,500 million (up 5.0% year-on-year) and operating profit of ¥1,680 million (up 28.4%).
Growth Strategy
Continue to achieve increased revenue and profit through strengthening the fundamentals of newly opened stores and revitalizing existing stores
The Susukino store (opened November 2023), Inada store (opened September 2024), and Chitose store (opened November 2024) have all continued to post double-digit sales growth. The Ario Sapporo store, which opened in March 2025, has performed strongly from the outset, competing for the top sales ranking among all stores. Early profitability of newly opened stores is directly linked to improving profit margins.
The Company continued to expand ready-to-eat products, pursue appropriate package sizes and pricing, and strengthen sales promotion of Seven Premium products. Company-wide efforts in inventory management and loss reduction improved the gross profit margin by 0.3 percentage points year on year to 25.8%, while the SG&A expense ratio improved by 0.4 percentage points to 23.5%.
The Company continues to promote its new store opening plan based on the medium-term management plan. Store openings in the Sapporo block in particular are driving sales growth, with sales in the Sapporo block for the first half of FY2026 (ending September 2026) increasing 20.7% year on year, achieving strong growth.
With the agreement concluded with Eniwa City in December 2025, disaster relief supply agreements have now been completed with all 8 cities and towns. Food Drive activities have expanded to 15 stores as of the end of March 2026, providing approximately 3,600 items and approximately 740kg of food and beverages to local social welfare councils and other organizations since the program began. Collaboration on product development with Obihiro Agricultural High School also continues.
Amid continued increases in personnel costs and various expenses, the Company is focusing on strengthening human resource acquisition and development, as well as promoting genderless initiatives, as key priorities. It will also concurrently promote improvements in store profitability, operational improvements, and strengthened disaster preparedness, thereby establishing a foundation for sustainable profit growth.
Last updated: July 17, 2026