LIFE CORPORATION
8194・Prime Market・Retail Trade
Retail Business
A core segment operating food supermarkets in the Greater Tokyo and Kinki areas (over 99% of consolidated revenue)
| Period | Current | Previous | Change |
|---|---|---|---|
| Retail Business operating revenue (Q1 cumulative) | ¥223,182 million (up 3.2% year on year) | ¥216,191 million | ↑ |
| Retail Business net sales (Q1 cumulative) | ¥215,015 million (up 3.2% year on year) | ¥208,280 million | ↑ |
| Retail Business segment profit (ordinary income basis, Q1 cumulative) | ¥7,344 million (down 6.5% year on year) | ¥7,859 million | ↓ |
| Fresh food division sales (Q1 cumulative) | ¥94,270 million (up 3.4% year on year) | +3.4% year on year | ↑ |
| General food division sales (Q1 cumulative) | ¥97,052 million (up 2.3% year on year) | +2.3% year on year | ↑ |
| Daily necessities division sales (Q1 cumulative) | ¥17,836 million (up 5.8% year on year) | +5.8% year on year | ↑ |
| Apparel division sales (Q1 cumulative) | ¥5,856 million (up 8.1% year on year) | +8.1% year on year | ↑ |
| Retail Business operating revenue (full year, annual) | ¥880,944 million (FY2026 (ending March 2026) results) | － | — |
| Retail Business segment profit (full year, annual) | ¥26,625 million (FY2026 (ending March 2026) results) | － | — |
Business Details
The Group operates general retail businesses centered on food products, including daily necessities and apparel, in the Greater Tokyo area (Tokyo, Kanagawa, Saitama, and Chiba prefectures) and the Kinki area (Osaka, Hyogo, Kyoto, and Nara prefectures). In the first quarter of FY2027 (ending March 2027) (March–May 2026), operating revenue was ¥223,182 million and net sales were ¥215,015 million. The Group is promoting new store openings for its organic and health-focused format "BIO-RAL," expansion of its Net Supermarket business, and strengthening of fresh food procurement capabilities through M&A.
Recent Overview
Despite higher revenue, Retail segment profit declined 6.5% due to increased personnel and property costs
In the first quarter of FY2027 (ending March 2027) (March–May 2026), the Retail Business achieved operating revenue of ¥223,182 million (up 3.2% year on year), driven by new store openings, existing store renovations, expansion of the Net Supermarket business, and strengthening of the BIO-RAL private brand. However, segment profit declined to ¥7,344 million (down 6.5% year on year) due to a combination of higher property costs such as rent associated with new store openings and increased personnel expenses from wage increases of 5% or more for three consecutive years and the expansion of annual holidays to 120 days. Leveraging its M&A organization, the Group entered into a capital alliance with seafood wholesaler "Kamekichi Shoten Co., Ltd." and made organic produce collection company "World Delica Co., Ltd." a non-consolidated subsidiary, strengthening its fresh food procurement capabilities.
Key Products
Growth Drivers
- New BIO-RAL store openings (three new stores in Q1) and improved product supply capacity and productivity through satellite kitchen operations
- Continued expansion of the Net Supermarket business
- Expansion of the customer base through the nationwide sale of BIO-RAL products via the LIFE Online Store
- Strengthening of fresh food procurement capabilities through M&A (partnership and subsidiarization of a seafood wholesaler and an organic produce collection company)
- Cost control through productivity improvements and property cost optimization via Kaizen activities
- Sales growth across all divisions (fresh food +3.4%, general food +2.3%, daily necessities +5.8%, apparel +8.1%)
Risks
- Intensifying competition that transcends industry and format boundaries (expansion of food offerings by drugstore formats, discount formats, and entry of major online retailers into fresh food)
- Impact on consumption from continued price increases and rising personnel and other costs (SG&A expenses up 3.5% year on year to ¥67,705 million)
- Risk that increases in property costs such as rent from new store openings outpace cost reduction effects from Kaizen activities
- Increased recruitment and labor costs due to worsening labor shortages (wage increases of 5% or more for three consecutive years and expansion of annual holidays to 120 days)
- Risk of expanding impairment losses
- Upfront investment burden associated with the transition of the Net Supermarket business to a center-fulfillment model
- External environmental uncertainty from trade policy trends and geopolitical risks in major countries, including crude oil price fluctuations and continued yen depreciation
Last updated: May 26, 2026