SHIMAMURA CO., Ltd.

Business Details

A clothing and soft goods retail business operated domestically by Shimamura Co., Ltd. It consists of five formats: "Fashion Center Shimamura" (general apparel for women in their 20s to 60s and families), "Avail" (young casual wear for those in their 10s to 40s), "Birthday" (baby and children's products), "Chambre" (miscellaneous goods and women's fashion), and "Devalo" (shoes and fashion goods). As of the end of the first quarter of FY2027 (ending March 2027), the company operated 1,422 Shimamura stores, 323 Avail stores, 343 Birthday stores, 125 Chambre stores, and 19 Devalo stores, providing quality, low-priced products to a wide range of customer segments.

Recent Overview

All five formats achieved higher sales; Japan Segment sales rose 7.7% year on year and operating profit rose 16.0% year on year, showing strong performance.

In the first quarter of FY2027 (ending March 2027) (February 21, 2026 to May 20, 2026), the Japan Segment recorded sales of ¥179,142 million (up 7.7% year on year) and operating profit of ¥17,722 million (up 16.0% year on year). In the Shimamura business, the private brands "FIBER DRY" and "Super COOL" performed well, and character product line-robbing also contributed positively. The Chambre business showed the highest growth rate at 19.4% year on year. Record heat in the latter half of May boosted summer clothing sales, and the online store's store-pickup service and "mix-and-match purchasing" also continued to perform well.

Key Products

Growth Drivers

• Increased per-item unit price through expansion of functional and socially responsive products such as the private brands "FIBER DRY," "Super COOL," "Iki-Iki Lab," and "Rakutto!"
• Expansion of collaboration projects with influencers and popular characters to generate sales less affected by temperature fluctuations
• Strong performance of the online store's "in-store pickup service" and "combined purchasing," expanding the synergistic effect between EC growth and customer referral to physical stores
• Acquisition of fans and improvement in weekday sales through the monthly "Avail Week" key promotional event
• Increased customer traffic through Chambre's enhanced digital promotion utilizing SNS and email newsletters
• Reduction of cost increases from raw material price hikes and exchange rate fluctuations by expanding the production ratio in the ASEAN region
• Improved store profitability through stronger urban store openings, renovation of existing stores, and conversion into fashion malls

Risks

• Risk that the retail environment for apparel will remain challenging due to persistently strong consumer thrift consciousness
• Risk that rising prices of energy and daily necessities will pressure household budgets and lead to more cautious consumer sentiment
• Risk of delayed launch of seasonal products due to weather fluctuations (lost sales opportunities for autumn and early winter items)
• Risk of rising procurement costs due to persistently high raw material prices and logistics costs
• Risk of increased selling, general and administrative expenses due to rising labor costs (wage increases)
• Risk of impairment losses on store fixed assets