MINISTOP CO., LTD.

Business Details

Comprised of MINISTOP Co., Ltd. itself and Network Service Co., Ltd. (Logistics) (a logistics subsidiary). Operates the Combo Store (Franchise / Company-owned) model, combining convenience store products with in-store prepared fast food, through franchise and company-owned stores. As of the end of May 2026, the number of domestic stores stood at 1,756. The Domestic Business also includes the workplace business (the unmanned convenience store "MINISTOP POCKET"), Delivery Service, and E-commerce.

Recent Overview

Sales and profit margin fell short of plan; operating loss expanded significantly due to increased advertising and personnel expenses

In the first quarter of FY2027 (ending March 2027) (March to May 2026), the Domestic Business posted revenue from operations of ¥22,406 million (104.8% year on year), an increase in revenue; however, existing store sales per day stood at 95.0% and customer count at 94.0%, falling short of the customer count recovery plan. Existing store sales per day for the in-store prepared fast food category declined significantly to 79.9%, and the gross profit margin fell 0.9 points year on year to 30.3%. Combined with increased advertising expenses for TV commercials and app coupons, and higher personnel expenses due to an increase in company-owned stores, the segment fell into an operating loss of ¥1,923 million (compared with operating profit of ¥193 million in the same period of the prior year). On the other hand, the workplace business generated operating profit of over 110% year on year, and the planned closure of 39 unprofitable stores proceeded largely as planned.

Key Products

Growth Drivers

• Expansion of workplace business (MINISTOP POCKET) locations (2,200 locations, up over 120% year on year) and generation of operating profit of over 110% year on year
• Delivery Service sales growth of over 140% year on year (expansion of items handled by approximately 2,500)
• E-commerce sales growth of over 180% year on year
• Sales of cold sweets (Hokkaido Milk Soft, Halo Halo, etc.) exceeding the prior year, with TV commercials rolled out to enhance brand recognition
• Expansion of the loyal customer base through MINISTOP App downloads exceeding 3.7 million (up over 130% year on year)
• Expanded product lineup in key categories such as onigiri and prepared bread, and reduction of food loss through use of markdowns
• Improvement in earnings structure through planned closure of unprofitable stores (39 stores closed by the end of the first quarter against an annual plan of 80 stores)

Risks

• Risk of failing to meet the sales plan due to delayed recovery in existing store customer count (94.0% year on year) and delays in expanding time-slot-based product assortment
• Sluggish existing store sales per day in the in-store prepared fast food segment (79.9% year on year) and decline in gross profit margin (down 0.9 points year on year)
• Persistently high SG&A expenses due to increased advertising expenses for TV commercials and app coupons, and rising personnel expenses associated with an increase in company-owned stores
• Continued recognition of impairment losses and store closure losses associated with the closure of unprofitable stores (in the first quarter: impairment loss of ¥64 million, store closure loss of ¥113 million, provision for store closure losses of ¥223 million)
• Continued pressure on customer count from consumers' heightened frugality due to rising prices of food and beverages and inflation
• Cost burden associated with revisions to the operation of the franchisee support system, and risk to maintaining relationships with franchisees