MAKIYA CO., LTD.

Business Details

Centered on Shizuoka and Kanagawa, the company operates multiple retail formats including the general discount store 'Espot,' the supermarket 'Potato Mommy,' the wholesale food retailer 'Gyomu Super,' the reuse shop 'Hard Off,' and the 100-yen shop 'Daiso.' The food division accounts for approximately 81% of sales, and this core segment contributes approximately 91% of group operating revenue. Based on an EDLP (Everyday Low Price) policy, it provides value that supports the daily lives of local residents.

Recent Overview

Revenue increased on strong food sales, but operating profit fell 6.9% year on year due to higher personnel and store-opening costs.

In the retail business segment for FY2026 (ending March 2026), operating revenue increased to ¥85,535 million (up 4.4% year on year). The food division performed well across all formats, rising 5.9% year on year, while the non-food division declined 1.8% year on year. Operating profit decreased to ¥2,521 million (down 6.9% year on year), primarily due to increased personnel costs from wage hikes averaging 6.5% for full-time employees and 6.6% for part-time employees, increased temporary expenses from new store openings and renovations, and taxes and public dues arising from the purchase of previously leased land and buildings. Customer traffic increased 1.7% year on year, and average customer spend rose 2.7% year on year. The markdown/waste-loss ratio improved by 1.2 percentage points year on year, and the food waste ratio improved by 16.0% year on year.

Key Products

Growth Drivers

• Sales expansion driven by favorable performance across all food division formats (Espot, Potato Mommy, and Gyomu Super all increased year on year)
• Contribution to non-food sales from expansion of the Daiso division (cumulative total of 13 stores)
• Increase in gross profit driven by higher customer traffic (up 1.7% year on year) and higher average customer spend (up 2.7% year on year)
• Improved gross margin from reduced markdown/waste-loss ratio (improved 1.2 percentage points year on year) and reduced food waste ratio (improved 16.0% year on year)
• Trade area expansion through new store openings and renovation investment (two new Gyomu Super stores, renovations at multiple Espot stores, etc.)
• Strengthened earnings base through improved labor productivity (improved 3.1% year on year)
• Group synergies through joint development, joint procurement, and joint sales of best-selling products with the EC business of subsidiary Usual

Risks

• Continued increase in personnel costs due to wage hikes (base pay raises of 6.5% on average for full-time employees and 6.6% on average for part-time employees have already been implemented)
• Increased temporary expenses from new store openings and renovations, along with taxes and public dues arising from the purchase of previously leased land and buildings
• Increase in utility costs (¥1,500 million in FY2026 (ending March 2026), up 1.3% year on year)
• Intensifying price competition due to new competitor store openings and expansion of e-commerce
• Shrinking regional trade areas due to the declining birthrate, aging population, and population decline
• Weakening consumer sentiment and reduced disposable income due to cost-push inflation
• Sluggish sales in the non-food division (down 1.8% year on year in FY2026 (ending March 2026))