CHIYODA CO., LTD.
8185・Prime Market・Retail Trade
Business
Chiyoda Co., Ltd. is a footwear specialty retail chain founded in 1936, listed on the Prime Market of the Tokyo Stock Exchange. The company operates store formats such as "Tokyo Shoes Ryutsu Center" and "Shoe Plaza Chiyoda" nationwide, running 863 stores (873 stores on a consolidated basis) as of the end of FY2025 (ending February 2025). Its consolidated subsidiaries, Chiyoda Bussan Co., Ltd. and Tomoe Shoji Co., Ltd. (both footwear wholesalers), enable the company to operate an integrated footwear retail and wholesale business. In November 2024, the company transferred all shares of Mac House Co., Ltd., which had long operated the Apparel Business, thereby concentrating management resources into a footwear-focused enterprise. The company's main customers span a broad range of age groups with everyday footwear needs, and its nationwide store network spanning seven regions is a key strength.
Business Model
The Chiyoda Group's primary revenue source is footwear retailing through its nationwide network of directly-operated stores. Consolidated subsidiaries (Chiyoda Bussan Co., Ltd. and Tomoe Shoji Co., Ltd.) handle the wholesale function, enabling the group to conduct everything from product procurement to sales in an integrated manner. The core of its differentiation strategy is the development of private brand (PB) products such as "Spat Shoes" and "Fuwaraku," aiming to improve the gross profit margin by expanding sales of high-gross-margin products. The EC business and corporate business are also being strengthened as revenue channels, and the company is pursuing a strategy to enhance customer loyalty through OMO initiatives utilizing its proprietary app.
Company Strengths
Operates 863 stores (as of the end of FY2025 (ended February 2025)) across seven regions nationwide, from Hokkaido/Tohoku to Kyushu/Okinawa. The Kanto region alone recorded net sales of ¥35,054 million, and the large-scale, community-based chain network forms a stable customer base. The company maintains and optimizes its store network through selective store openings and closures.
The hands-free footwear private brand "Spat Shoes" achieved annual sales of over 1.5 million pairs through the launch of new categories and enhanced TV commercials and digital marketing. Functional private-brand product lines such as "Fuwaraku" are also being expanded, and the product development capability unique to a specialty retailer directly contributes to improved gross margins.
As of the end of FY2025 (ended February 2025), interest-bearing debt stood at ¥980 million, while cash and cash equivalents totaled ¥24,481 million. The equity ratio remained at a high level of 65.8% (up 5.9 percentage points year on year), providing the financial flexibility to fund M&A investments and store openings.
ENVALITH's Perspective
Performance Trend
Operating losses continued in FY2022 and FY2023, but the company turned profitable in FY2024 with operating profit of ¥1,071 million, expanding to ¥2,193 million in FY2025. However, FY2026 entered an adjustment phase, with net sales of ¥81,377 million and operating profit of ¥1,090 million, affected by the transfer of the Apparel Business, among other factors. In Q1 FY2027 (March–May 2026), net sales were ¥21,582 million (down 1.8% year on year) and operating profit was ¥945 million (down 34.1% year on year), with the profit decline accelerating. The main causes were a rise in the cost-of-sales ratio (external factors: higher raw material costs and yen depreciation) and the recording of an impairment loss of ¥148 million. The full-year forecast (net sales of ¥82,500 million and operating profit of ¥1,400 million) remains unchanged, with a recovery expected in the second half.
Growth Strategy
Focusing on specialization in footwear, the company is strengthening profitability through PB expansion, OMO deepening, and multi-channel development.
With a sales plan of 3.4 million pairs this fiscal year, the company is expanding its target demographic through character collaborations aimed at younger customers, cooling sneakers, and school indoor shoes for children. The company aims to improve gross margin by raising the PB ratio.
To maximize sales on the Proprietary EC Site, the company is enhancing PR by leveraging external influencers. It is also promoting increased recognition of its PB and EC site through greater SNS activity. The company aims to further deepen digital sales promotion and OMO.
As a measure against rising prices, the company has made low-price children's shoes a permanent offering. In women's shoes, it launched "Yokubari Pumps" to acquire new customers and encourage store visits. The company aims to expand its customer base by addressing the bifurcation between mid-to-high price functional products and low-price products.
The company is conducting a fundamental review of its corporate business as part of efforts to expand sales channels beyond physical stores. Through reviewing advertising expenses and curbing administrative costs, it has reduced selling, general and administrative expenses by 2.5% year on year, driving improvement in profitability structure.
Since May 2026, the company has begun social contribution activities as a supporting supporter of the Children and Families Agency's "Kodomo Mannaka Action" initiative. The company aims to enhance brand value and build long-term relationships with customers toward its 100th anniversary.
Last updated: July 17, 2026