ENVALITH
株式会社カンセキ logo

KANSEKI CO., LTD.

9903・Standard Market・Retail Trade

Official website
株式会社カンセキ logo
KANSEKI CO., LTD.9903

Business

Kanseki Co., Ltd. was founded in 1975 and is headquartered in Utsunomiya City, Tochigi Prefecture, listed on the TSE Standard Market. Its core business is home center operations (25 stores), and it operates four segments: the home center business, the outdoor specialty store WILD-1 (25 stores), specialty store business including Gyomu Super and Off House (19 food retail stores, 9 reuse stores), and the store development business centered on real estate leasing. In 2022, the company concluded a capital and business alliance with DCM Holdings, advancing collaboration such as expanding private brand products. Its primary customers are general consumers and commercial demand users mainly in the Kita-Kanto region centered on Tochigi Prefecture, with the management slogan of being the regional number-one store. Net sales for FY2025 (ending February 2025) were ¥36,552 million (up 0.5% year on year).

Business Model

In the core home center business (operating revenue of ¥15,965 million), the company sells a wide range of products including DIY goods, daily necessities, and food, while working to improve gross margins through the use of private-brand products in collaboration with DCM. The WILD-1 business (operating revenue of ¥9,260 million) pursues differentiation as a specialty outdoor retailer. The specialty store business (operating revenue of ¥11,479 million) captures demand by combining the value pricing of Gyomu Super with the reuse demand of Off House. The store development business secures stable earnings through real estate leasing (operating margin of approximately 36%), underpinning overall company profits.

Company Strengths

50 years since its founding in 1975, the company operates 25 home center stores, 25 WILD-1 stores, and a combined 28 stores in food and reuse businesses, mainly centered on Tochigi Prefecture. By covering diverse consumer needs across home centers, outdoor goods, discount supermarkets, and resale under a single company, it has a multi-format structure that enables earnings diversification according to economic conditions.

The Specialty Store business achieved operating revenue of ¥11,479 million (up 6.5% year on year) and segment profit of ¥890 million (up 15.6% year on year) in FY2025 (ended February 2025). Expanding demand for value-priced goods at Gyomu Super (discount supermarket) combined with active jewelry trading at Off House amid soaring gold prices, making it the segment contributing the most to overall company profit.

In July 2022, the company entered into a capital and business alliance with DCM Holdings and DCM Co., Ltd. It is promoting improvement in the gross margin of the home center business by expanding DCM private brand products. The alliance with a major home center group supplements the company's merchandise procurement and development capabilities as an independent regional chain.

ENVALITH's Perspective

Operating profit for Q1 FY2027 (ending February 2027) was ¥239 million, a significant improvement from ¥158 million in the same quarter of the previous year. Progress against the full-year forecast of ¥550 million stood at a favorable 43.5%. Multiple factors contributed to this, including new store openings for Gyomu Super, the launch of the yakiniku FC business, and the turnaround to profitability in the WILD-1 segment (from a loss of ¥9 million in the same quarter last year to a profit of ¥40 million), confirming an improvement in the earnings structure. However, the full-year forecast remains unchanged, and it will be necessary to assess the potential for upward revision depending on second-half seasonality and the competitive environment.

The equity ratio at the end of Q1 FY2027 (ending February 2027) declined to 25.2% (from 26.9% at the end of the previous fiscal year). Total current liabilities swelled to ¥12,723 million, including short-term borrowings of ¥4,790 million, current portion of long-term borrowings due within one year of ¥1,264 million, and bonds due for redemption within one year of ¥500 million. As an external factor, amid continued rising interest rates, interest expenses increased from ¥40 million in the same quarter of the previous year to ¥58 million, and attention should be paid to the fact that rising financial costs are a factor depressing ordinary profit.

Valuation difference on available-for-sale securities at the end of Q1 decreased by ¥330 million from ¥1,446 million at the end of the previous fiscal year to ¥1,116 million, and total net assets declined to ¥6,517 million (from ¥6,798 million at the end of the previous fiscal year). As an external factor, fluctuations in the stock market directly affect the valuation of held investment securities (¥2,665 million), and there is a risk of further decline in the equity ratio in a market downturn. On the other hand, retained earnings have been accumulating due to the recording of quarterly net profit of ¥194 million, and strengthening equity capital through core business earnings remains a challenge.

Growth Strategy

Medium-term plan "Make Smile 2026" to reform the profit structure through multi-format franchise expansion, PB strengthening, and digital utilization

Leveraging the partnership with DCM, the company will continue to improve the gross margin of the home center business through expanded product lineup and enhanced sales of PB (private brand) products. In Q1 FY2027 (ending February 2027), DCM PB sales achieved double-digit growth year on year, contributing to supporting profitability.

The company continues to open new Gyomu Super stores to capture demand for household budget-conscious shopping. In March 2026, it opened the Otawara Minami store (Otawara City, Tochigi Prefecture), and combined with agile special sales campaigns, this pushed up operating revenue in the specialty store business by 6.6% year on year for the same quarter.

In March 2026, the company opened the yakiniku (Japanese-style grilled meat) specialty restaurant "Premium Karubi Utsunomiya Ekito Store" as the first franchise store of Kobe Bussan, the operator of Gyomu Super. The store got off to a stronger-than-expected start, boosting sales in the specialty store business. Initial opening costs are weighing on profitability, but profit contribution is expected once operations stabilize.

In response to slowing demand for overnight camping equipment, the company is strategically strengthening the lineup and sales of soft goods such as apparel and UV care products. By combining digital shift initiatives (app registration campaigns, exclusive coupon DMs) to maximize customer LTV with cost reductions, the business achieved a segment profit of ¥40 million in Q1 FY2027 (ending February 2027), turning positive from a loss of ¥9 million in the same quarter of the previous year.

The company is promoting stable customer acquisition and more efficient promotional costs through registration campaigns and exclusive coupon DMs utilizing the Kanseki app and WILD-1 app. It continues efforts to grow sales while curbing increases in expenses by carefully reviewing the cost-effectiveness of sales promotion measures.

Last updated: July 17, 2026