SEKICHU CO.,LTD.
9976・Standard Market・Retail Trade
Business
Sekichu Co., Ltd. traces its origins to a timber business founded in 1806, and opened its first home center store in Gunma Prefecture in 1975. The company's core business is home center operations handling a wide range of everyday goods including DIY supplies, household goods, car accessories, bicycles, and leisure products, while also operating specialty car accessory stores and bicycle stores. It has expanded its store network centered on Gunma Prefecture into the Kanto and Koshinetsu regions, serving as living infrastructure for local residents. As a second pillar, the company also operates a real estate leasing business using its own properties, securing stable earnings. It operates as a standalone entity with no subsidiaries or affiliated companies. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The majority of net sales is accounted for by the home center business (¥31,019 million in FY2026 (ending February 2026)), generating revenue from retail sales of DIY products, household goods, car accessories, and similar items. In addition, the real estate leasing business (operating revenue of ¥848 million, segment profit of ¥445 million), which leases company-owned real estate to tenants, functions as a high-margin, stable source of income. Funding needs are covered mainly by operating cash flow and borrowings from financial institutions.
Company Strengths
Originating from a lumber business founded in 1806, the company opened its first home center store in 1975. Since then, it has continued operating community-focused stores centered on Gunma Prefecture for 50 years. It listed on JASDAQ in 2004 and transitioned to the TSE Standard Market in 2022. Its long-established regional customer base and store operation know-how form the foundation of its competitive advantage.
The real estate leasing business, which utilizes company-owned real estate, recorded operating revenue of ¥848 million and segment profit of ¥445 million (profit margin of approximately 52%) in FY2026 (ending February 2026). It functions as a high-margin, stable revenue source that complements fluctuations in the home center business's profits, generating efficient returns against segment assets of ¥2,747 million.
In addition to the core home center business, the company employs a multi-format strategy operating specialty stores for car accessories and bicycles. It has carried out ongoing sales floor renovations across multiple stores (pet department renewals, semi-self checkout introduction, drug department expansion, etc.), strengthening its ability to respond to customer needs. In February 2023, it released the Sekichu app, advancing the development of a digital membership base as well.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods has remained flat in the range of ¥29,721 million to ¥31,120 million. Operating profit peaked at ¥752 million in FY2023 (ended February 2023) and has continued to decline since, reaching ¥619 million in FY2026 (ending February 2026). The full-year forecast for FY2027 (ending February 2027) anticipates a further decline to ¥500 million. Meanwhile, operating profit for the first quarter of FY2027 alone was strong at ¥371 million (up 24.3% year on year). External factors such as rising prices, higher procurement costs, and increased utility costs are expected to weigh on full-year earnings. The strong first-quarter performance was driven by capturing demand in the Reform/Exterior segment and the Gardening/Agricultural Materials segment, and demand trends in the second half will determine the full-year outcome.
Growth Strategy
Three pillars aimed at becoming the top store in each region: strengthening sales capability, securing land for new store openings, and improving management efficiency
The company is advancing store reforms, including the expansion of drug sales floors, contributing to sales growth in the daily necessities segment (up 6.1% year-on-year in Q1 FY2027 (ending February 2027)). This initiative continues as an effort to increase customer visit frequency and boost average spending per customer.
The reform and exterior segment continued to perform well in Q1 FY2027 (ending February 2027). Total DIY product sales grew to ¥4,236 million (up 4.4% year-on-year), and the company aims to expand high-value-added services, including corporate contract construction revenue.
Under the FY2027 (ending February 2027) theme of "Reporting, Contacting, and Consulting to Move the Organization — Increasing Communication to Build a Safe and Secure Company and Stores," the company is promoting information sharing among employees and enhancing organizational execution capability, aiming to provide merchandise assortments and services supported by local customers.
The company is actively promoting tenant attraction for its owned real estate properties to stabilize and expand real estate leasing revenue. Real estate leasing revenue in Q1 FY2027 (ending February 2027) remained on a growth trend at ¥219 million (up 4.1% year-on-year), and the company continues to promote effective utilization of properties as commercial facilities attached to home centers.
Last updated: July 17, 2026