JUNTENDO CO.,LTD.

Business Details

A home center business based in Shimane Prefecture, operating 116 stores across the Chugoku and Kinki regions (as of the end of FY2026, ending February 2026). The company handles a wide range of products including agriculture and gardening, construction and DIY, household goods and appliances, and hobby and leisure items, under the management philosophy of "becoming indispensable infrastructure for regional cities, mountainous areas, and remote islands." The home center business accounts for approximately 98% of net sales, with operating income also recorded from real estate leasing and other sources. The company's target indicators are an early recovery of operating revenue to ¥500 million and an ordinary income margin of 2% or higher.

Recent Overview

FY2026 (ending February 2026) saw declining revenue, operating income cut in half, and a net loss, as the company pursues structural reforms

For FY2026 (ending February 2026), operating revenue was ¥43,040 million (down 3.0% year-on-year), operating income was ¥238 million (down 49.6% year-on-year), and the company recorded a net loss of ¥361 million. Consumer spending restraint triggered by food price increases from September onward spread across all divisions, causing a significant slowdown in the latter half of the fiscal year. Extraordinary losses totaling ¥582 million, including an impairment loss on fixed assets of ¥507 million and a loss on disposal of fixed assets of ¥63 million, were the main causes of the net loss. On the other hand, the agriculture and gardening division was the only one to post increased sales, up ¥194 million year-on-year. The company began operating a new distribution center, discontinued its book center business (with related business sales sharply declining to ¥26 million), and transitioned to a 116-store structure by opening one home center store and closing six by fiscal year-end. For FY2027 (ending February 2027), the company forecasts operating revenue of ¥44,000 million (up 2.2% year-on-year) and operating income of ¥420 million (up 76.4% year-on-year).

Key Products

Growth Drivers

• Continued strengthening of the agriculture and gardening division: differentiation and improved customer loyalty through collaboration with the Shimane Prefectural Agricultural Cooperative and Zen-Noh
• Restructuring of logistics infrastructure and cost reduction through the operation of a new distribution center
• Practicing highly specialized, problem-solving-oriented sales through the development of certified personnel such as DIY advisors and green advisors
• Expansion of stores staffed with repair personnel to increase purposeful visits and visit frequency
• Improved profit margins through an increased proportion of private brand products
• Company-wide productivity improvements through AI utilization and core system renewal

Risks

• Sluggish customer traffic and average spending due to continued price increases and heightened consumer frugality and spending restraint
• Intensifying competition with other home center operators, drugstores, and large-scale commercial facilities in the Chugoku and Kinki regions
• Profit pressure from rising personnel costs due to wage increases and increased depreciation expenses associated with capital investment
• Cost increases due to soaring energy prices and the weak yen trend
• Impact of weather fluctuations on sales of seasonal products (agriculture and gardening, appliances, etc.)
• Market shrinkage due to long-term population decline and increasing difficulty in securing personnel and labor
• Risk of impairment losses on fixed assets (¥507 million recorded in FY2026, ending February 2026)