Takashimaya Company ,Limited

Business Details

Comprises Takashimaya Company, Limited itself and its subsidiaries and affiliates such as Okayama Takashimaya. The mainstay business is the sale of clothing, personal accessories, general merchandise, household goods, and food, centered on the five large stores in eastern and western Japan (Nihombashi, Shinjuku, Yokohama, Osaka, and Kyoto). The segment captures inbound demand and domestic customers' consumption of high-value items while offering an experience-oriented purchasing environment that combines item-based flat sales floors, self-curated sales areas, and EC. In the first quarter of FY2027 (ending February 2027), the segment achieved increased revenue and profit.

Recent Overview

Both inbound and domestic customer demand remained solid, with operating profit up 44.2% year on year, a substantial increase.

In the first quarter of FY2027 (ending February 2027) (March to May 2026), the domestic department store business achieved operating revenue of ¥71,159 million (up 3.2% year on year) and operating profit of ¥7,461 million (up 44.2% year on year). In addition to increased inbound demand driven by the weak yen, domestic customer sales also remained solid. Although the product profit margin declined year on year due to an increased proportion of lower-margin items such as luxury brands, gross profit increased due to higher sales. Selling, general and administrative expenses improved from the prior year through cost reduction efforts, despite factors such as higher personnel costs from base pay increases. On a non-consolidated basis, major stores posted increased sales across the board, including Osaka (¥45,209 million, up 9.9% year on year), Kyoto (¥29,314 million, up 13.8%), and Yokohama (¥36,931 million, up 9.2%). The Sakai store ceased operations on January 7, 2026.

Key Products

Growth Drivers

• Continued increase in inbound demand driven by the weak yen
• Solid trend in domestic customer sales (exceeding the previous year's results on an existing-store basis)
• Expanding domestic customer demand for luxury brands and high-value items
• Strengthened digital customer touchpoints through the Takashimaya app and high EC sales growth (up 18.7% year on year)
• Improved product profit margins in the fashion category, including clothing and general merchandise, through cooperation with key suppliers
• Deepening customer relationships through a strengthened sales structure for outside-sales customers and new services such as financial services
• Conversion to a next-generation shopping center through the Tamagawa Takashimaya S.C. renewal project (grand opening scheduled for FY2027)
• Promotion of cross-border shopping through mutual customer referrals with overseas stores

Risks

• Risk of fluctuations in inbound demand (decrease in visitors to Japan due to yen appreciation and geopolitical risk)
• Stagnation in domestic personal consumption and progressing consumption polarization due to trends in real wages
• Decline in product profit margin due to an increased proportion of lower-margin high-value items such as luxury brands
• Pressure on SG&A expenses from rising personnel costs, including base pay increases, and higher utility costs
• Impact of decreased sales associated with the closure of the Sakai store (January 2026)
• Impact on sales and customer traffic during the renovation of Tamagawa Takashimaya S.C.
• Impact of prolonged geopolitical risk on financial markets (interest rates, foreign exchange, stock prices) and on personal consumption and inbound demand