DAIICHI CO.,LTD.

Business Details

A single-segment business operating food-focused supermarkets across the three blocks of Obihiro, Asahikawa, and Sapporo. As ancillary operations, the company leases tenant space within stores and portions of shopping center premises. Guided by the corporate mission of "being useful to customers' everyday food life," the company develops diverse sales channels including ready-to-eat products, private brand (Seven Premium) products, and the Mobile Supermarket (Tokushimaru). The company pursues both store expansion based on a dominant-area strategy and revitalization of existing stores.

Recent Overview

H1 FY2026 (ending March 2026) saw substantial growth, with net sales up 9.2% and operating profit up 31.7%

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), net sales were ¥31,212 million (up 9.2% year on year), operating profit was ¥1,013 million (up 31.7% year on year), ordinary profit was ¥995 million (up 30.5% year on year), and net income for the interim period was ¥675 million (up 21.9% year on year). The absence in the current period of new store opening costs incurred in the prior interim period was the main factor behind the improvement in profit margin. Ario Sapporo, which opened in March 2025, has shown strong performance, competing for the top sales ranking among all stores since its opening, and drove a 20.7% year-on-year increase in Sapporo block sales. Gross profit margin improved to 25.8% (up 0.3 percentage points year on year), and the SG&A ratio improved to 23.5% (down 0.4 percentage points year on year), reflecting improved profitability. The full-year earnings forecast remains unchanged, with the progress rate for operating profit at a solid 60.3%. The annual dividend is planned to increase from ¥36 in the prior fiscal year to ¥40.

Key Products

Growth Drivers

• Effect of new store openings: Ario Sapporo, which opened in March 2025, has performed strongly, competing for the top sales ranking among all stores, driving a 20.7% year-on-year increase in Sapporo block sales
• Strengthening of recently opened stores: 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
• Absence of new store opening costs: The store opening costs incurred in the prior interim period did not recur in the current period, resulting in a substantial improvement in operating profit margin from 2.7% to 3.2%
• Thorough inventory management and loss reduction: Company-wide commitment to "thorough execution of the basics" improved gross profit margin (up 0.3 percentage points year on year)
• Expanded sales of Seven Premium: Strengthened promotion of high-quality private brand products in response to customers' cost-saving mindset and demand for simplicity and convenience
• Expansion of ready-to-eat products and pursuit of appropriate portion sizes and pricing: Maintaining customer traffic and average spending per customer by addressing cost-conscious customer needs
• Completion of disaster relief supply agreements with all 8 municipalities (agreement concluded with Eniwa City in December 2025), strengthening the company's community-based brand

Risks

• Impact on average customer spending and visit frequency from continued food price increases and a strengthening cost-saving mindset and purchase restraint among customers
• Further increases in various expenses such as labor costs and utility costs (SG&A expenses were ¥7,324 million in H1 FY2026, ending March 2026, up 7.4% year on year)
• Intensifying competition across industries and business formats (new competitors entering Hokkaido, existing competitors shifting to low-price business models)
• The time required to make newly opened stores profitable and the burden of store opening costs (strengthening the business foundation toward the final year of the medium-term management plan is a challenge)
• Economic downside risk from geopolitical risks such as slowing inbound demand due to worsening Japan-China relations and escalating tensions in Iran
• Risk of rising procurement costs due to concerns over supply shortages of petroleum refining materials and other resources
• Risk of fluctuations in exchange rates, energy, and raw material prices due to the impact of US trade policy