ENVALITH
株式会社イズミ logo

IZUMI CO., LTD.

8273・Prime Market・Retail Trade

Official website
株式会社イズミ logo
IZUMI CO., LTD.8273

Business

IZUMI CO., LTD. was founded in 1961 in Hiroshima City and operates its retail business across the entirety of western Japan, centered on the Chugoku, Shikoku, and Kyushu regions, based on three core store formats: Yume Town (large-scale shopping centers), Yume Mall (neighborhood shopping centers), and Yume Mart (food supermarkets). The company is composed of 16 consolidated subsidiaries and 3 affiliated companies, forming a diversified business group centered on its Retail Business (operating revenue of ¥506,985 million), supplemented by the Retail-Related Business, which covers credit card operations, facility management, and food service, as well as Others, which includes the Wholesale Business and Real Estate Leasing Business. In August 2024, the company succeeded Seiyu's Kyushu food supermarket business (70 Sunny stores), accelerating the strengthening of its dominance in the Kyushu area. Its main customers are local residents spanning three generations, and its long-term vision is to build communities that are comfortable to live in and that see population growth.

Business Model

In the Retail Business, the company combines GMS/SC formats that provide clothing, food, and household goods in an integrated manner with SM formats specialized in food, capturing a broad customer base. The credit card business, centered on the Yumeca (Credit Card / Electronic Money) electronic money service (cumulative issuance of 10.67 million cards), generates customer retention and fee income, while the Facility Management & Construction Services and Food Service Business (Mister Donut, Baskin-Robbins, etc.) complement store customer traffic. The dual structure of tenant rent income and directly-operated sales revenue supports earnings stability.

Company Strengths

The company operates three formats centered on Chugoku, Shikoku, and Kyushu: the wide-area Yume Town, the neighborhood-type Yume Mall, and the food supermarket Yume Mart. In August 2024, it took over Seiyu's Kyushu food supermarket business (approximately 70 Sunny stores) through a company split, further strengthening its dominant position centered on Fukuoka Prefecture. It is also expanding area coverage through M&A and alliances in Oita and Kagawa.

The cumulative number of Yumeca (Credit Card / Electronic Money) cards issued reached 10.67 million at the end of the fiscal period under review (an increase of 440 thousand from the end of the previous period), and the increase in credit card transaction volume contributed to a ¥7,256 million increase in accounts receivable and contract assets. The company aims to further expand its merchant and user base through the launch of new services such as Yumeca Pay and youme club yell.

The equity ratio for FY2025 (ending February 2025) stood at 50.1% (maintaining a majority even after the M&A), and the interest coverage ratio was an extremely high 119.7 times. Operating cash flow was ¥40,282 million, an increase of ¥8,719 million from the previous period. The company has obtained a long-term issuer rating of A+ (Stable) from the Japan Credit Rating Agency, reflecting high confidence in its financial foundation.

ENVALITH's Perspective

Q1 operating profit for FY2027 (ending February 2027) was ¥6,860 million, up ¥563 million YoY (+8.9%). Against the full-year forecast of ¥29,000 million (+6.5% YoY), Q1 progress stood at 23.7%, broadly in line with the usual pace. Expense control (SG&A ratio of 34.3%, down 0.4pt YoY) and a decrease in interest expense (down ¥98 million YoY) contributed to the profit increase, and the earnings forecast remains unchanged from the figures announced on April 14, 2026. Improvement in the employment and income environment as an external factor is also supporting consumption, providing a tailwind.

Cash flow from operating activities for Q1 of FY2027 (ending February 2027) was ¥3,893 million, a significant decrease of ¥21,946 million from ¥25,840 million in the same period of the previous year. The main cause was the reversal of the prior-year period's ¥28,021 million increase in trade payables (a temporary factor associated with the succession of the Sunny Business), with the current period's increase in trade payables normalizing to ¥3,455 million. In addition, corporate tax payments increased to ¥5,324 million (versus ¥4,322 million in the same period of the previous year). Cash balance stood at ¥19,712 million, down ¥8,376 million from the previous fiscal year-end, and the funding balance with investing activities warrants continued close monitoring.

Due to the promotion of low-price initiatives such as the "Kyoretsu Tokka" (Intense Special Price) selection of 100 items, the gross profit margin was 39.2%, down 0.1pt YoY. SG&A expenses increased by ¥718 million YoY due to higher personnel costs and existing-store repair expenses, partially offsetting the effect of increased revenue. The in-house private brand "Yume Ichi" is expanding, reaching 203 items as of the end of May 2026, but achieving the target of a 10% share of food sales by 2030 will require a substantial expansion in the number of items and sales volume. Continuing low-price initiatives amid a period of rising prices involves a trade-off between customer traffic effects and gross margin, making verification of the cost-effectiveness of these initiatives a challenge.

Growth Strategy

The Third Medium-Term Plan targets becoming a comprehensive lifestyle industry in western Japan through three pillars: creating new supermarket business, evolving GMS, and strengthening peripheral businesses

Established the CSM (Chain Store Management) Promotion Department reporting directly to the President, to produce the entire SM business including merchandising policy, store operations, and back-office functions. Reorganized grocery and prepared foods under the Food Division to strengthen merchandising strategy. Opened a new store (Yume Mall Nakagawa) in Q1 FY2027 (ending February 2027), continuing trade area expansion.

The private brand "Yume Ichi," launched in September 2025, had expanded to 203 items as of the end of May 2026 (166 price-focused items, 36 regular items, 1 premium item). Added the "Yume Review" feature to the Yume App to leverage customer feedback in product development. Targets cumulative development of 800 items by 2035 and a 10% share of food sales by 2030.

Announced entry into banking agency services (BaaS) via the Yume Card in April 2026. Aims to link financial services such as deposits, loans, and foreign exchange offered through a dedicated app with existing payment, points, and promotional functions. In the facility management business, operating profit in the Retail-Related Business for Q1 FY2027 (ending February 2027) rose 16.4% year on year to ¥1,578 million, driven by an increase in designated management facilities and strong construction order intake.

Established the SSC (Shared Service Center) Department aimed at consolidating and standardizing indirect operations across the Izumi Group as a whole. As a result of expense control efforts, the SG&A ratio for Q1 FY2027 (ending February 2027) was 34.3% (down 0.4pt year on year), contributing to maintaining profitability amid rising personnel and logistics costs.

Conducted large-scale renewals at Yume Town Yamaguchi, Minami-Yukuhashi, Ube, Hikarinomori, and other locations. Introduced experience-based facilities such as children's play areas, Machi Library, and Little Planet to generate store visit motivation across a wide range of age groups. Existing store sales (including tenants) for Q1 FY2027 (ending February 2027) rose a solid 3.1% year on year.

Last updated: July 17, 2026