Saikaya Department Store Co.,Ltd.
8254・Standard Market・Retail Trade
Department Store Business
The core segment of Saikaya, operating three stores in Kanagawa Prefecture, accounting for over 99% of consolidated sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (cumulative Q3, 9 months) | ¥3,516 million | ¥3,510 million | — |
| Segment operating profit (cumulative Q3, 9 months) | ¥479 million | ¥510 million | ↓ |
| Segment sales (full year, prior year actual) | ― | ¥4,624 million | — |
| Segment operating profit (full year, prior year actual) | ― | ¥666 million | — |
| Non-consolidated directly-operated sales, total of 3 stores (cumulative Q3) | ¥2,849 million | ¥2,818 million | ↑ |
| Tenant and commission income (non-consolidated, cumulative Q3) | ¥674 million | ¥700 million | ↓ |
| Depreciation expense (consolidated, cumulative Q3) | ¥271 million | ¥260 million | ↑ |
Business Details
Saikaya Co., Ltd. operates department stores in Yokosuka City and Fujisawa City, and a satellite-type store in Kawasaki City. In addition to Department Store Zone Sales of clothing, food, and other items, the company is transitioning to a hybrid model that uses rental income from large-scale tenant attraction as a pillar of earnings. The consolidated subsidiaries Alpha Trend Co., Ltd. (wholesale of watches, jewelry, and precious metals) and Saikaya Tomonokai Co., Ltd. (prepaid specified transactions) support the group's business. Segment sales for the cumulative nine months of Q3 FY2026 (ending August 2026) were ¥3,516 million, with segment operating profit of ¥479 million.
Recent Overview
Round1 Yokosuka opened in May, and Matsumotokiyoshi Fujisawa opened in July, with earnings contributions expected from Q4 onward.
"Round1 Saikaya Yokosuka" opened on May 28, 2026, drawing large numbers of visitors daily and contributing to improved in-store circulation and longer dwell time. "Matsumotokiyoshi Saikaya Fujisawa" opened on July 10, 2026, and increased Department Store Zone sales resulting from higher foot traffic are expected from Q4 onward. Reduced rent payments (over ¥40 million in annual fixed cost savings) from the acquisition of certain floor space at the Yokosuka store also continued to contribute. Cumulative Q3 segment operating profit was ¥479 million (94.0% year-on-year), below the prior year, largely due to the impact of a ¥70 million gain on donated fixed assets recorded in the prior year. Interest expense increased to ¥76 million (up ¥52 million year-on-year), putting pressure on ordinary income.
Key Products
Growth Drivers
- Continued increase in rental income through large-scale tenant attraction (Round1 Yokosuka opened May 2026, Matsumotokiyoshi Fujisawa opened July 2026)
- Continued fixed cost (rent) savings of over ¥40 million annually from the company's acquisition of ownership of all floor space at the Yokosuka store
- Increased Department Store Zone sales and profit from Q4 onward due to higher foot traffic driven by large-scale tenant openings
- Reduction in selling, general and administrative expenses through continued low-cost operations (cumulative Q3 SG&A of ¥1,565 million, down ¥66 million from ¥1,631 million in the prior year period)
- Earnings contribution from the Fujisawa store's strong sales performance (105.1% year-on-year for cumulative Q3)
Risks
- Decline in directly-operated sales due to reduction in Department Store Business floor space from tenant attraction (Yokosuka store cumulative Q3 at 95.3% year-on-year)
- Pressure on ordinary income from increased interest expense (¥76 million for cumulative Q3, up ¥24 million year-on-year)
- High level of long-term borrowings due within one year at ¥8,631 million (as of end of May 2026), continuing financial leverage risk
- Equity ratio of 11.0% (as of end of May 2026) remains low, leaving financial base vulnerability
- Impairment risk on fixed assets: total tangible fixed assets increased to ¥8,340 million (up ¥975 million from the prior fiscal year-end), and changes in business plans or market conditions could materially affect fixed asset valuations
- Impact on revenue structure from decline in tenant and commission income (cumulative Q3 at ¥674 million, 97.5% year-on-year)
Last updated: November 19, 2025