Saikaya Department Store Co.,Ltd.
8254・Standard Market・Retail Trade
Business
Saikaya Co., Ltd. is a regional department store in Kanagawa Prefecture with roots tracing back to its founding in 1872. It operates three stores—Yokosuka, Fujisawa, and Kawasaki (satellite format)—with the Department Store Business as its core operation. In 2021, it became a subsidiary of AFC-HD AMS Life Science Co., Ltd., and has since pursued fundamental management scheme reforms. Its consolidated subsidiaries include Alpha Trend Co., Ltd. (wholesale of watches, jewelry, and precious metals) and Saikaya Tomonokai Co., Ltd. (prepaid specified transaction business). From FY2025 (ending August 2025), the company added the Real Estate Business (apartment leasing and brokerage) as a new segment to diversify revenue. Its main customers are general consumers within Kanagawa Prefecture and Outside Sales Department clients (corporate and individual).
Business Model
Transitioning from the conventional department-store-type retail model to a rental income model driven by tenant attraction. In FY2025 (ending August 2025), tenant and commission income expanded to ¥929 million (up ¥77 million year on year). By expanding company-owned sections, fixed costs (rent) are being reduced by more than ¥40 million annually, while in the Department Store Zone Sales area, self-operated shops and dining establishments are being deployed to maintain customer traffic. The Outside Sales Department also continues to strengthen sales of high-margin merchandise.
Company Strengths
Through fundamental reform of its management scheme, the company achieved profitability for 3 consecutive fiscal years starting FY2023 (ending August 2023). The ratio of SG&A expenses to sales improved by 7.8 points, from 57.2% to 49.4%. Continued promotion of low-cost operations and cost reductions accompanying the expansion of leasable space are progressing steadily.
In FY2025 (ending August 2025), the company acquired the landowner's unit at the Yokosuka store, bringing all units into its own ownership and achieving a fixed cost (rent) reduction of over ¥40 million annually. Furthermore, on September 30, 2025, the company entered into a lease agreement with Round One Japan, aiming for a synergistic effect of converting vacant units into rental income and increasing store visitor numbers.
The company has sequentially attracted multiple large-scale tenants such as Pashios, Life, Pompadour, and Locust, expanding tenant and commission income to ¥929 million in FY2025 (ending August 2025) (up ¥77 million from ¥852 million in the previous fiscal year). Stable rental income underpins the company's earnings base.
ENVALITH's Perspective
Performance Trend
Revenue for the cumulative nine months of Q3 FY2026 (ending August 2026) was ¥3,522 million (100.1% year on year), essentially flat. The Fujisawa store performed well at 105.1% year on year, while the Yokosuka store saw a decline in revenue at 95.3%. Operating profit came in at ¥94 million (101.4% year on year), securing a slight increase. Ordinary profit fell sharply to ¥79 million (63.4% year on year), mainly because the prior-year period included a ¥70 million gain on donated fixed assets (versus ¥55 million this period) and interest expense increased from ¥52 million to ¥76 million. Quarterly net profit attributable to owners of the parent was ¥81 million (67.7% year on year). In terms of financial position, total assets were ¥12,751 million (up ¥857 million from the end of the previous fiscal year), net assets were ¥1,404 million (up ¥612 million from the end of the previous fiscal year), and the equity ratio improved to 11.0% (from 6.7% at the end of the previous fiscal year). Looking at the financial trend over the past five fiscal periods, the company turned profitable in FY2023 after posting large losses in FY2021 and FY2022, and has since established a stable profit base, with FY2025 revenue of ¥4,633 million, operating profit of ¥115 million, and net income of ¥110 million.
Growth Strategy
Targeting stable profitability and dividend resumption through a three-pronged approach of expanding tenant rental income, reducing fixed costs, and revitalizing the Department Store Zone.
With the opening of Round1 Yokosuka (opened May 28, 2026) and Matsumotokiyoshi Fujisawa (opening July 10, 2026), the company expects increased rental income and higher Department Store Zone sales and profit driven by increased foot traffic. Full-scale earnings contribution is expected from the fourth quarter.
Rent payments have been continuously reduced through the acquisition of a portion of the Yokosuka store site. This has generated a fixed cost reduction effect of over ¥40 million annually, which will continue to contribute to earnings as an ongoing cost reduction effect from the fourth quarter onward. Land assets increased from ¥4,879 million at the end of the previous fiscal year to ¥5,263 million at the end of the third quarter under review.
Based on the resolution of the extraordinary general meeting of shareholders held on February 26, 2026, the reduction of capital stock and capital reserves eliminated the retained earnings deficit (completed May 20, 2026). Funds were raised through a third-party allotment to AFC-HD AMS Life Science and EVO FUND (exercise of stock acquisition rights concluded June 16, 2026). A dividend of ¥5 is planned for the end of the current fiscal year, marking the anticipated resumption of dividend payments.
Selling, general and administrative expenses totaled ¥1,565 million on a cumulative basis for the third quarter, down ¥66 million from ¥1,631 million in the same period of the previous fiscal year. Cost reductions have continued even as sales remained roughly flat, forming the foundation for achieving the full-year operating profit forecast of ¥150 million (up 30.7% year on year).
Last updated: July 17, 2026