IZUMI CO., LTD.
8273・Prime Market・Retail Trade
Retail Business
The core segment of the Izumi Group. Centered on GMS, SM, and SC formats, it operates community-based retail throughout western Japan.
| Period | Current | Previous | Change |
|---|---|---|---|
| Operating revenue (Retail Business) | ¥135,418 million (Q1 cumulative, FY2027 (ending February 2027)) | ¥131,966 million (Q1 cumulative, FY2026 (ending February 2026)) | ↑ |
| Operating profit (Retail Business) | ¥5,157 million (Q1 cumulative, FY2027 (ending February 2027)) | ¥4,817 million (Q1 cumulative, FY2026 (ending February 2026)) | ↑ |
| Operating margin (Retail Business) | 3.8% (Q1 cumulative, FY2027 (ending February 2027)) | 3.7% (Q1 cumulative, FY2026 (ending February 2026)) | ↑ |
| Operating revenue (Retail Business, full year) | ¥551,029 million (full year, FY2026 (ending February 2026)) | － | — |
| Operating profit (Retail Business, full year) | ¥20,782 million (full year, FY2026 (ending February 2026)) | － | — |
| Goodwill balance | ¥33,731 million (as of May 31, 2026) | ¥34,207 million (as of February 28, 2026) | ↓ |
| Existing store sales (including tenant specialty stores), year-on-year | +3.1% (Q1, FY2027 (ending February 2027)) | － | ↑ |
| Existing store sales (directly-operated basis), year-on-year | +1.8% (Q1, FY2027 (ending February 2027)) | － | ↑ |
| Number of proprietary PB "Yume Ichi" items | 203 items (as of end of May 2026) | 163 items (FY2025) | ↑ |
Business Details
Sells clothing, home goods, food products, and other items primarily through three formats: shopping centers (Yume Town), neighborhood-type SCs (Yume Mall), and supermarkets (Yume Mart). Key affiliated companies include Yume Mart Kumamoto Co., Ltd., Yume Mart Kitakyushu Co., Ltd., and Yours Co., Ltd. In August 2024, the company succeeded Seiyu's Sunny Business (70 stores), substantially strengthening its dominance in the Kyushu area. This is the core segment, accounting for approximately 97% of the Group's consolidated operating revenue.
Recent Overview
Increased customer counts driven by new stores, low-price initiatives, and PB expansion, resulting in Q1 operating revenue up 2.6% and operating profit up 7.1%.
In Q1 of FY2027 (ending February 2027) (March–May 2026), the Retail Business recorded operating revenue of ¥135,418 million (up 2.6% year on year) and operating profit of ¥5,157 million (up 7.1% year on year). "Yume Mall Nakagawa" newly opened in March. Directly-operated existing store sales increased 1.8% year on year, driven by continuation of the "Intense Special Value" carefully selected 100 items, expansion of the proprietary PB "Yume Ichi" to 203 items, and strengthening of the fruits/vegetables and fresh fish departments. Large-scale renewals were also carried out at Yume Town Yamaguchi, Minamiyukuhashi, Ube, and Hikari no Mori. Based on the Third Medium-Term Management Plan (2035 Long-Term Vision), the company is pursuing "creation of a new SM business" and "evolution of GMS" as basic strategies. The CSM Promotion Department and SSC Department were newly established to strengthen the organizational structure.
Key Products
Growth Drivers
- Advancement of the Third Medium-Term Management Plan (2035 Long-Term Vision), which sets the creation of a new SM business as a basic strategy
- Expansion of the proprietary PB "Yume Ichi" (203 items as of end of May 2026; target of a cumulative 800 items by 2035 and 10% composition ratio within food products by 2030) to enhance price appeal and improve gross margin
- Strengthened customer draw and increased customer counts through low-price initiatives such as "Intense Special Value" carefully selected 100 items (90 food items, 10 daily necessity items)
- Expansion of trading area and sales uplift through new store openings (Yume Mall Nakagawa, etc.)
- Enhanced store visit value through large-scale renewals of existing stores (Yume Town Yamaguchi, Minamiyukuhashi, Ube, Hikari no Mori, etc.)
- Strengthened dominance in the Kyushu area and utilization of scale merits through the Sunny Business succession (70 stores)
- Strengthened merchandising strategy and consolidation/standardization of indirect operations through the newly established CSM Promotion Department and SSC Department
- Enhanced customer engagement through digital utilization such as the addition of the "Yume Review" feature to the Yume App
Risks
- Continued amortization burden of the goodwill balance (¥33,731 million) associated with the Sunny Business succession, and uncertainty from the fact that a portion of the acquisition cost remains under negotiation
- Intensified consumer thrift orientation and selective spending amid persistently high food and energy prices, affecting customer counts
- Deterioration in cost structure due to increased fixed costs such as labor costs and existing store repair costs (SG&A expenses in Q1 increased ¥718 million year on year)
- Downward pressure on gross margin from the promotion of low-price initiatives (39.2% of Q1 operating revenue, down 0.1 percentage points year on year)
- Intensifying price competition with competitors (increased costs to address bipolarization of consumption)
- Impairment loss risk (¥46 million recorded in Q1; ¥1,693 million recorded in the prior full fiscal year)
- Concerns over recurrence of cybersecurity risks such as ransomware (response costs based on the February 2024 incident)
- Inflationary pressure and increasing caution in consumer sentiment due to factors such as heightened tensions in the Middle East
Last updated: May 26, 2026