Axial Retailing Inc.
8255・Prime Market・Retail Trade
Business
Axial Retailing operates as a pure holding company, with its core business being the supermarket segment (Harasin, Nals, Fresei), together with support businesses in information processing, printing, and cleaning, across a total of 12 group companies. Its main business is the food supermarket segment, which operates 131 stores across six prefectures—centered on Niigata (71 stores) and Gunma (44 stores), and also including Nagano, Toyama, Tochigi, and Saitama—and accounts for approximately 98% of net sales. The primary customers are general consumers living within a 5km radius of each store, characterized by high-frequency visits multiple times per week. Fresh food and general food items account for approximately 90% of sales, and the company differentiates itself through community-focused strategies such as private brand products and its proprietary bagging service.
Business Model
The business is primarily cash-based store sales with high fund liquidity. It secures gross margin by combining the scale benefits derived from the joint centralized procurement organization with CGC Japan, together with manufacturing-retail functions such as in-house developed private-brand products, direct imports, and a delica center. Logistics efficiency is pursued through a four-hub system in Nakanoshima, Joetsu, Maebashi, and Nagano, and the vertically integrated earnings structure is supported by in-house subsidiaries handling information processing, printing, and cleaning that help reduce costs.
Company Strengths
The company intensively operates 131 stores across 6 prefectures, centered on 71 stores in Niigata Prefecture and 44 stores in Gunma Prefecture, capturing customers within a 5km radius of each store at high frequency (multiple times per week). In FY2026 (ending March 2026), the customer spend per visit across all stores rose to 106.5% year on year, and total sales across all stores reached ¥291,654 million (105.3% year on year), with both existing stores and all stores exceeding the prior year. Even amid an environment of record-high new store openings and renovations by competitors, the company achieved record consolidated highs in sales, operating profit, and ordinary profit.
The company continuously introduces unique products that are difficult for competitors to imitate by combining PB product development through Axial Label, prepared food manufacturing through Rory, and direct imports without intermediaries, achieved for the first time in FY2026 (ending March 2026). The securities report explicitly states that strong sales of signature products and PB products based on the "Oishisa Kikakuka Keikaku" were the main factor behind sales exceeding the forecast (actual results of ¥295,536 million, 103.3% of forecast).
As of the end of FY2026 (ending March 2026), the equity ratio stood at 66.1%, and cash and cash equivalents were ¥30,436 million (an increase of ¥8,549 million from the end of the previous fiscal year). The interest coverage ratio was extremely high at 478.9 times, and the company maintained net assets of ¥95,218 million while funding capital expenditures of ¥4,548 million entirely through internal funds and leasing. ROA of 9.2% and ROE of 9.5% also indicate stable capital efficiency.
ENVALITH's Perspective
Performance Trend
Sales grew for five consecutive periods, rising from ¥246,450 million in FY2022 (ended March 2022) to ¥295,536 million in FY2026 (ending March 2026), an average annual growth rate of approximately 4.6%. FY2026 (ending March 2026) saw a 4.8% year-on-year increase, marking a new record high. Operating profit also reached a record ¥12,185 million (up 1.0% year-on-year), though the structure of offsetting a declining gross profit margin (due to low-price responses amid intensifying competition) through SG&A cost control continues. Net income attributable to owners of parent decreased 2.3% year-on-year to ¥8,803 million, affected by a reduction in special corporate tax deductions. As an external factor, price inflation contributed to a rise in average customer spend (per-item unit price across all stores was 103.9% of the same period of the prior year), while increases in labor costs, delivery costs, and payment commissions pressured profit margins. The operating profit margin declined slightly to 4.1% from 4.3% in the previous period, and ROA also slipped to 9.2% (from 9.5% in the previous period), continuing to fall short of the 10% target.
Growth Strategy
Aiming for sales exceeding ¥300,000 million through a trinity of dominant area strategy reinforcement, product differentiation, and logistics infrastructure development
Continuously develop and introduce proprietary products such as signature products, private brand products, and the new sweets brand 'Pont de Peinture', aiming to differentiate from competitors and maximize gross profit. In FY2026 (ending March 2026), existing store sales at all stores reached 104.7%, confirming the effectiveness of these measures.
Direct imports, involving direct transactions with overseas exporters without intermediaries, were realized for the first time during fiscal year 2025. By leveraging the scale advantages of a chain store, a new procurement function is being established to pursue differentiation from competitors and improved profit margins.
In February 2026, the Harasin Nals Nagano Area Center was newly established in Nagano Prefecture. This has reduced costs by lowering remote delivery burdens, improved product quality, and strengthened emergency response capabilities, laying the foundation for expanding wide-area store openings centered on Nagano Prefecture.
A progressive dividend policy has been introduced for the five years from FY2027 (ending March 2027) onward, based on the principle of 'maintaining or increasing dividends relative to the previous period's level.' The target is approximately 30% of consolidated net income per share, and for FY2027 (ending March 2027), an annual dividend of ¥29 (payout ratio of 32.1%) is planned. The total payout ratio for FY2026 (ending March 2026) was 43.2%.
Last updated: July 19, 2026