RETAIL PARTNERS CO., LTD.
8167・Prime Market・Retail Trade
Business
Retail Partners Co., Ltd. is a holding company headquartered in Yamaguchi Prefecture, operating food supermarkets across the western Chugoku region and the entire Kyushu region through five core subsidiaries: Maruku, Marukyo, Marumiya Store, Hatsutori, and Tomura Seiniku Honten. As of the end of FY2026 (ending February 2026), the company operated 281 stores (expanded from 274 stores at the end of FY2025 (ending February 2025)), with its main customers being local residents living within each store's trading area (a radius of 500m to 2km). The Supermarket Business accounts for over 99% of consolidated operating revenue, complemented by Other Businesses such as the Insurance Agency Business, Sports Club Business, and food manufacturing (Tomura Foods, etc.). Since transitioning to a holding company structure in 2015, the group has continuously pursued the formation of a business alliance through M&A.
Business Model
Each operating company attracts customers with product lineups tailored to regional preferences and culture, generating its main revenue from the sales margin on food and daily necessities. Through the New Japan Supermarket Alliance with Arcs-Valor HD, the company reduces costs via joint procurement and PB (Private Brand) product development, while securing gross margin through in-house group production at Miyazaki Meat Factory, Tomura Foods, and other group companies. The structure also improves logistics efficiency through shared use of the RPG Miyazaki Distribution Center.
Company Strengths
As of the end of FY2026 (ending March 2026)—wait, correcting to February—the company operates 281 stores across 10 prefectures in the Chugoku and Kyushu regions, forming dominant clusters in key areas such as 80 stores in Yamaguchi Prefecture, 53 stores in Oita Prefecture, and 61 stores in Fukuoka Prefecture. Through years of community-based sales operations, the company has established high market share and brand recognition.
In the New Japan Supermarket Alliance formed with Arcs Co., Ltd. and Valor Holdings, the company operates five subcommittees covering joint merchandise procurement, joint materials procurement, PB (Private Brand) development, and operational reform. This gives it procurement cost reduction capabilities that can compete with major national chains, complementing the weaknesses of small and medium-sized local supermarkets.
As of the end of FY2025 (ending March 2025), the equity ratio stood at 66.7% (up 2.5 percentage points year on year), with interest-bearing debt of ¥13,618 million against cash and cash equivalents of ¥18,746 million, placing the company close to a virtually debt-free position. The ratio of cash flow to interest-bearing debt was 1.5 years, indicating a high level of financial soundness.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has maintained an increasing trend, from ¥239,520 million in FY2022 to ¥268,295 million in FY2026. However, operating profit peaked at ¥6,740 million in FY2024, edged up slightly to ¥6,823 million in FY2025, then declined to ¥6,468 million in FY2026, showing signs of weakening profitability. In Q1 of FY2027 (ending February 2027), operating revenue was ¥71,015 million (+3.1% YoY), securing revenue growth, but operating profit fell sharply to ¥1,413 million (-25.2% YoY). The main causes were external factors—rising procurement prices (cost of sales of ¥52,396 million, +3.4% YoY) and increased labor costs (employee salaries and bonuses of ¥7,284 million, +8.7% YoY)—which pushed total SG&A expenses up from ¥16,292 million to ¥17,206 million. The full-year forecast (operating profit of ¥6,800 million, +5.1% YoY) remains unchanged, but given the low progress rate in Q1, a substantial improvement in the second half will be required to achieve it.
Growth Strategy
Final year of the Third Medium-Term Management Plan targeting ROE of 7% or higher through M&A, group collaboration, and DX promotion
In June 2025, Eino Co., Ltd. (8 stores in Miyazaki Prefecture) was made a consolidated subsidiary, contributing to sales growth. Over the medium to long term, the company aims for non-continuous growth through area expansion, new services, and M&A. As of the end of the first quarter, the store count stood at 280 (down 1 store from the end of the previous fiscal year).
The second installment of the Retail Partners PB, "Strong Carbonated Water Lemon," was launched in the first quarter under review. Joint PB development through the New Japan Supermarket Alliance also continues, aiming to improve the gross profit margin. Gross profit increased to ¥16,122 million (up 2.6% year on year).
The Maruku App (with smartphone payment function) was renewed to add a smartphone payment function, strengthening customer engagement. Operational efficiency has also progressed, including a change in the inventory valuation method to the retail inventory method in connection with a change in the inventory management system. This initiative continues in response to labor shortages and rising costs.
With awareness of the cost of shareholders' equity and share price, the company has set a target of ROE of 7% or higher. The annual dividend forecast for FY2027 (ending February 2027) is maintained at ¥40.00 (the same amount as the previous fiscal year's actual result). Share buybacks (281,500 shares resolved by the Board of Directors in April 2026) have also been conducted to continue enhancing shareholder returns.
Last updated: July 17, 2026