ENVALITH
株式会社近鉄百貨店 logo

Kintetsu Department Store Co.,Ltd.

8244・Standard Market・Retail Trade

Official website
株式会社近鉄百貨店 logo
Kintetsu Department Store Co.,Ltd.8244

Business

Kintetsu Department Store Co., Ltd. is a Kinki-region-based department store group with Kintetsu Group Holdings as its parent company. Tracing its origins to the opening of Daiki Department Store in 1936, the company will mark its 100th anniversary in 2036. With Abeno Harukas Kintetsu Main Store (Abeno-ku, Osaka City) as its flagship, it operates stores along the Kintetsu railway lines in areas such as Nara, Kusatsu, Wakayama, Kashihara, and Uehonmachi. Centered on the Department Store Business, the group has a diversified structure encompassing imported automobile sales and food manufacturing (Wholesale & Retail Business), interior construction (Interior Fitting Business), property leasing (Real Estate Business), and transportation (Other Businesses). Its main customers are local residents, affluent customers, and external sales (gaisho) clients living in the Kintetsu trading area, as well as inbound foreign tourists. Consolidated net sales for FY2025 (ending February 2025) were ¥115,107 million.

Business Model

In the Department Store Business, which accounts for approximately 81% of net sales, the company secures repeat revenue through External Sales (personal services for affluent customers), Tomonokai (Membership Savings Club) (prepaid installment savings), and duty-free sales, in addition to merchandise sales of apparel, food products, and general goods. It is promoting structural reforms to improve sales floor profitability while containing fixed costs through the active introduction of franchise businesses (over 27 business categories). Group subsidiaries (Kinso's Interior Fitting Business and Kinki Delivery Service's Transportation Service) generate synergies through intra-group transactions, while Property Leasing (with an operating margin of approximately 70%) serves as a highly profitable complementary function.

Company Strengths

A large-scale urban department store with 100,000㎡ of total floor space across the entire building, which had its grand opening in 2014. In FY2025 (ending February 2025), duty-free sales reached a record high, and high-value merchandise sales performed strongly, driven by the reinforcement of premium select brands (Bottega Veneta, Saint Laurent, etc.). Following the 10th anniversary of its opening, a plan has been formulated to remodel approximately 30% of the entire building during the medium-term management plan period.

External Sales Business revenue has continued to trend favorably, and the company is pursuing a strategy to expand external sales to the Kintetsu Group. The franchise business has expanded to over 27 business categories, and all regional stores achieved profitability during the previous medium-term management plan period. Operating profit of the Department Store Business in FY2025 (ending February 2025) reached ¥3,921 million, up 54.2% year on year, reflecting the results of revenue structure reform in concrete figures.

Net sales grew for four consecutive periods, from ¥98,146 million in FY2022 (ending February 2022) to ¥115,107 million in FY2025 (ending February 2025). Operating profit recovered sharply from an operating loss of ¥1,399 million in FY2022 (ending February 2022) to ¥5,353 million in FY2025 (ending February 2025). The equity ratio improved from 27.3% (FY2021, ending February 2021) to 33.7% (FY2025, ending February 2025), reflecting steady strengthening of the company's financial position.

ENVALITH's Perspective

Operating profit of ¥5,353 million in FY2025 (ending March 2025) expanded sharply, up 37.2% year on year, but fell short of the final target of ¥6.5 billion under the previous medium-term management plan. The business remains heavily dependent on external factors such as inbound tourism and the External Sales Business, creating risk that a shift toward yen appreciation or changes in inbound visitor trends could directly affect performance. Achieving the ¥6.5 billion target under the new medium-term management plan will require continued profit growth of roughly 5% per year.

The company plans total capital expenditure of ¥35.0 billion over the four years of the medium-term management plan, of which ¥10.0 billion will be concentrated in the Abeno/Tennoji area. Actual capital expenditure in FY2025 (ending March 2025) was ¥4,087 million, below the planned pace, suggesting an acceleration of investment going forward. Confirming the timing of investment effects and their contribution to earnings will be a key point in evaluating the investment.

ROE in FY2025 (ending March 2025) came to 9.2%, falling short of the previous plan's target of 10% or more, but the new medium-term plan sets a target of ROE of 9.0% or higher. Starting in FY2025, the company has newly established a consolidated dividend payout ratio target of 30%, shifting policy toward performance-linked shareholder returns. With an equity ratio of 33.7% and a ratio of interest-bearing debt to operating cash flow of 0.7 years, financial soundness remains high, leaving room to expand shareholder returns.

Growth Strategy

Aiming to evolve into a next-generation department store, the company is advancing flagship store remodeling, strengthening of external sales, and the sowing of seeds for new businesses over a four-year period.

Over the four years of the Medium-Term Management Plan (FY2025–FY2028), approximately 30% of the total 100,000㎡ floor area will be remodeled. Through the strengthening of select brands, renovation of the food floor, and the establishment of a new Premium Salon (tentative name), the company aims to expand its customer base and acquire next-generation customers.

In addition to the flagship store, the company will remodel its own commercial facilities Hoop and and, establishing a four-facility structure comprising Hoop, and, and Abeno Well-being Terrace, thereby enhancing the drawing power and leasing revenue of the entire area.

By redefining customers through the integration of the Kintetsu Group ID, the company will promote affluent/VIP customer development centered on the External Sales Business organization. The plan targets an approximately 20% increase in External Sales Business revenue compared to FY2024. Attendant services and life concierge services will also be expanded.

The franchise business, which has expanded to over 27 business categories, will shift its focus from quantity to quality in order to improve productivity. The company will also pursue higher profitability through the development of proprietary brands in agricultural business (strawberries and mangoes) and expand directly-operated businesses into external facilities.

Over four years, the company will invest approximately ¥4.0 billion in human capital (including a fundamental reform of the personnel system in FY2027) and approximately ¥2.0 billion in DX (strengthening customer connections, real-store DX, and workstyle transformation), building the foundation for sustainable growth.

Last updated: April 30, 2026