ENVALITH
株式会社ヤマザワ logo

YAMAZAWA CO.,LTD.

9993・Standard Market・Retail Trade

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株式会社ヤマザワ logo
YAMAZAWA CO.,LTD.9993

Business

Yamazawa Co., Ltd. was founded in 1962 and is a food retail group with its operational base in the three Tohoku prefectures of Yamagata, Miyagi, and Akita. Centered on its supermarket business (70 stores), the group also operates a drugstore business (70 stores), a food manufacturing business (Sanko Foods Co., Ltd.), and other businesses including insurance and mobile phone agency operations. Consolidated net sales stood at ¥105,405 million (FY2026 ending February 2026). Its main customers are general consumers in the three Tohoku prefectures, and it serves as a regional life infrastructure provider through the daily supply of groceries, daily necessities, and pharmaceuticals. Under the group vision of "Aiming to be a healthy, vibrant 100-year company loved by the community," the group is promoting integrated group management to strengthen its competitiveness.

Business Model

Supermarket business accounts for approximately 88% of net sales, with retail sales of groceries, daily necessities, and apparel serving as the primary revenue source. The drugstore business (net sales of ¥13,070 million) forms the second pillar, strengthening the revenue format through the conversion of dispensing pharmacies into drugstore-in-store formats. The food manufacturing business (Sanko Foods) internally supplies prepared foods and daily delivered food products for use within the group, contributing to differentiation and cost reduction in the supermarket business through a vertically integrated structure. The target management indicator is a consolidated net sales ordinary profit margin of 3%.

Company Strengths

Operates 70 stores in total—44 in Yamagata Prefecture, 19 in Miyagi Prefecture, and 7 in Akita Prefecture—forming a robust trading area across the three Tohoku prefectures. Since its founding in 1962, the company has built a store network deeply rooted in the local community over more than 60 years, serving as a foundation for stably capturing residents' daily demand for groceries and household goods.

In March 2024, the company completed the transition from its proprietary point card, "Nikoka Card," to the "Yamazawa Edy-Rakuten Point Card," building a customer base of over 380,000 members. Through the partnership with Rakuten Group (with over 100 million members), the company is strengthening its use of data marketing and new customer acquisition.

The Delica Center of subsidiary Sanko Foods went into full operation, expanding internal sales by ¥308 million year on year to ¥5,308 million. The company launched proprietary prepared-food brands such as "Yamazawa Deli" and "Kono Machi no," achieving improved quality and freshness through state-of-the-art equipment and hygiene management. This has contributed to product differentiation in the supermarket business and reduced in-store labor.

ENVALITH's Perspective

In Q1 FY2027 (ending February 2027), net sales were ¥24,871 million (down 4.6% year on year), with the decline continuing partly due to the impact of the corporate split involving six stores in Akita. On the other hand, quarterly net income attributable to owners of the parent surged 74.4% year on year to ¥298 million, but this was mainly driven by an income tax adjustment of ¥-94 million (versus ¥-8 million in the prior-year period) related to the recognition of deferred tax assets. Operating profit declined 12.8% year on year to ¥217 million, indicating a decrease in core business profitability, and caution is warranted in taking the increase in net income at face value.

The full-year forecast for FY2027 (ending February 2027) calls for net sales of ¥99,700 million (down 5.4% year on year), operating profit of ¥700 million (down 38.6% year on year), and net income of ¥450 million (down 67.3% year on year), representing a significant profit decline plan. Q1 operating profit of ¥217 million equates to 31% of the full-year forecast of ¥700 million, which is not a low progress rate. However, external pressures from rising utility costs, labor costs, and logistics costs are expected to continue, making progress in merchandise reform and operational reform essential for a recovery in profitability in the second half. Compared with the first-half cumulative forecast (operating profit of ¥290 million), the structure is weighted toward the second half.

The drugstore business turned profitable in Q1 FY2027 (ending February 2027) with segment profit of ¥9 million, versus a loss of ¥-22 million in the same period last year, showing signs of improvement. Meanwhile, external sales in the supermarket business were ¥21,474 million (down 5.9% year on year), and even excluding the impact of the withdrawal from Akita, structural headwinds such as population decline and intensifying competition persist. In terms of the market environment, heightened consumer defensiveness in spending amid rising prices is affecting average customer spending and visit frequency, and the effectiveness of customer retention measures utilizing the Rakuten Point Card and the official app will be key to determining the medium-term profitability level.

Growth Strategy

Year 2 of the 4th Medium-Term Management Plan: Aiming to become a 100-year enterprise through early profitability restoration, store revitalization, and integrated group management

Working to firmly establish the new Prepared Foods Brands "Yamazawa Deli" and "Kono Machi no," promoting differentiation through local production for local consumption and original products. In collaboration with the Delica Center, internal transfer sales are expanding to ¥1,290 million (up ¥85 million year on year). The aim is to achieve both improved gross margin and differentiation from competitors.

Leveraging the personalized services of the "Super Yamazawa Official App" and the "Yamazawa Edy-Rakuten Point Card" (with over 390,000 members) to strengthen acquisition and retention of young family customers. The company aims to improve promotional efficiency through data marketing.

In February 2026, six stores in the Akita area were transferred through a corporate split to restructure unprofitable businesses. Revitalization of existing stores continues, including the renovation of the Kiyosumicho store (Yamagata City) in April 2026. Management resources are currently concentrated on the 62-store network (44 in Yamagata, 18 in Miyagi) to build a stable earnings base.

The Mobile Supermarket "Tokushimaru," through which sales partners (individual proprietors) deliver products directly to the homes of customers who find it difficult to visit stores, is currently operating a total of 27 vehicles (17 in Yamagata, 10 in Miyagi). The company will continue to expand its coverage area and increase the number of vehicles, aiming to capture customers outside existing trading areas and supplement sales.

Solar panels have been introduced at 19 stores by February 2026 to promote decarbonization. From April 2026, the company will participate in a business recycling waste cooking oil into SAF and other products, mainly in Miyagi Prefecture. The company has also obtained certification as a "Health and Productivity Management Outstanding Organization 2026" (Large Enterprise Category), contributing to talent acquisition and enhancement of corporate value.

Last updated: July 17, 2026