Nitori Holdings Co., Ltd.

A unique model that manages planning, manufacturing, logistics, and sales in an integrated manner within its own group achieves a cost structure that is difficult for competitors to imitate. With all six proprietary distribution centers (DCs) becoming fully operational in FY2026 (ending March 2026), the logistics expense ratio is expected to peak out. The company is also promoting labor savings through the introduction of devanning robots, pursuing overall optimization from upstream to downstream.

As of the end of FY2026 (ending March 2026), the company operated 1,069 stores in total, comprising 808 domestic stores and 209 overseas stores (across 11 Asian countries/regions). In the fiscal year alone, it opened 62 new stores domestically and 30 overseas. Since its founding in 1972, the company has continuously expanded its store network for over 50 years, forming the foundation for building a global chain.

The Shimachu business swung sharply from a segment loss of ¥1,288 million in the previous fiscal year (FY2025, ended March 2025) to a profit of ¥7,212 million in the current fiscal year (FY2026, ending March 2026). This was driven by a combination of factors, including improved gross margin from an increased sales mix of private brand products such as the "Neasy series," optimization of advertising expenses, and cost reductions from transferring logistics operations to Home Logistics.

Restructured the Merchandising Division's organizational framework to improve the quality, volume, and speed of development. Created hit products such as the pocket-coil mattress "ZC001 series," ultra-lightweight frying pans, and home appliances (refrigerators, TVs, washer-dryers). Recovery of the number of customers at existing domestic stores (92.8% of the prior period) is the most critical challenge, and the company is also promoting brand awareness through regular new-product exhibitions leveraging media and influencers.

All six completed proprietary distribution center (DC) sites became fully operational in FY2026 (ending March 2026), completing the relocation from previously leased DCs. Automation and labor reduction have also begun through the introduction of devanning robots. The company has explicitly indicated that the logistics expense ratio is expected to peak out in the current period, positioning this as a key driver of future profit margin improvement.

Opened 30 overseas stores in FY2026 (ending March 2026): 6 in Taiwan, 3 in mainland China, 5 in South Korea, 4 in Malaysia, 3 in Singapore, 2 in Thailand, 1 in Vietnam, 3 in the Philippines, and 3 in Indonesia. In mainland China, profitability improved significantly through the withdrawal of unprofitable stores and relocation to optimally sized stores in better locations. The sales floor style of newly opened stores in Vietnam and South Korea is being rolled out as a new store-opening model across other countries. Logistics cost reductions were also achieved through a review of overseas shipping routes.

Improved gross profit margin by increasing the sales composition ratio of private-brand products such as the "Neasy series." Advanced an integrated approach combining optimization of advertising expenses, transfer of delivery operations to Home Logistics, expansion/contraction of sales floor space based on profit and loss by product category, and enhanced customer traffic through Nitori store openings and the attraction of external tenants. Achieved a turnaround from a loss of ¥1,288 million in the prior period to a profit of ¥7,212 million.