TENMAYA STORE CO.,LTD.
9846・Standard Market・Retail Trade
Business
Tenmaya Store Co., Ltd. was founded in 1969 and is a community-based retail group operating a supermarket business selling groceries, sundries, and apparel centered on Okayama Prefecture across the Chugoku region. The group comprises 4 consolidated subsidiaries and 2 affiliated companies, with its core retail business (Tenmaya Happy's and others) complemented by peripheral retail businesses (Delica Essen Co., Ltd., Delica-Na Co., Ltd., and Miyoshino Honten Co., Ltd.) that handle prepared food manufacturing and sales and the restaurant business. The retail business accounts for approximately 86% of net sales, with sales within Okayama Prefecture representing approximately 92% of retail business sales. The company is listed on the Standard Market of the Tokyo Stock Exchange. Its main customers are general consumers in Okayama, Hiroshima, and Tottori Prefectures.
Business Model
In the core retail business, revenue is derived from sales of groceries, sundries, and apparel, as well as store rental income, with customer traffic driven by pricing and quality strategies such as the EDLP "Chotoku" and "Seven Premium". In the retail-related business, the company operates manufacturing and sales of prepared foods such as deli items, as well as food service operations, creating added value through synergies within the group. For FY2025, the ordinary income margin on operating revenue was 4.1%, and the ordinary income return on total assets was 5.7%. Funding is based primarily on internal funds and bank borrowings, with capital expenditures allocated mainly to renovation and maintenance/renewal of existing stores.
Company Strengths
Of retail segment sales of ¥47,826 million, Okayama Prefecture accounts for ¥43,898 million (approximately 91.8%). The company actively promotes regional collaboration, including comprehensive agreements with local municipalities and educational institutions and food recycling activities. Its 55-year history and regional brand form a barrier to entry.
In 2013, the company entered into a capital and business alliance with Ito-Yokado Co., Ltd. and Seven & i Holdings Co., Ltd. Expansion and increased sales of "Seven Premium" have strengthened the lineup of high-value-added products, contributing to differentiation from competitors and higher average customer spending.
The company expanded the number of stores using an AI-powered automatic register-shift creation system, rolled out full self-checkout registers and electronic shelf labels, and improved automatic ordering accuracy, reducing selling, general and administrative expenses such as labor costs by ¥396 million year on year in FY2025. This has contributed to maintaining operating profit.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods, revenue peaked at ¥64,039 million in FY2022, then declined sharply to ¥54,580 million in FY2023, before leveling off in the ¥55,000–56,000 million range during FY2024–FY2026. In Q1 of FY2027 (ending February 2027), revenue was ¥14,701 million (+2.3% year-on-year), maintaining a modest growth trend. On the other hand, operating profit declined to ¥563 million (-6.0% year-on-year). External factors—rising prices centered on foodstuffs, continued yen depreciation, and higher energy costs—have pushed up cost of sales, which reductions in SG&A expenses (-¥161 million) have not been sufficient to offset. Achieving the full-year operating profit forecast of ¥2,300 million (+5.3% year-on-year) will require profitability improvement in the second half.
Growth Strategy
Pursuing community-based growth through three pillars: new mall store openings, strengthened EDLP, and leveraging group synergies
In March 2026, the company pre-opened the core store of its first mall-format facility, "Tenmaya Happy's Saidaiji Mall" (Higashi-ku, Okayama City). The facility is being developed as a regional food-culture hub, featuring a locally-sourced products corner, a morning market, and a shared bicycle port. Improved customer traffic and sales contribution are expected in the new trading area.
In response to rising cost-consciousness among consumers amid price increases, the company is strengthening its EDLP (Every Day Low Price) strategy. By combining this with the introduction of the private brand "Kurashi Ryoko" (Good Living), the company aims to expand its lineup of value-priced products, enhance price competitiveness, prevent customer attrition, and acquire new customers.
The company is expanding its retail-adjacent businesses in conjunction with new store openings in its retail business, including the opening of "Omedetai-yaki Honpo" by Derika Essen inside the Tenmaya Happy's Saidaiji store (March 2026) and commemorative product planning by Miyoshino Honten. Operating profit from the retail-adjacent business segment in the first quarter was ¥97 million (+17.6% year-on-year), confirming an improvement.
The company continues to promote reductions in selling, general and administrative expenses through the enhanced use of digital technologies such as self-checkout registers and electronic shelf labels. SG&A expenses in the first quarter were ¥3,931 million, a decrease of ¥161 million year-on-year, reflecting ongoing improvement in the cost structure.
Last updated: July 17, 2026