YAMAYA CORPORATION

Business Details

Yamaya Corporation, Yamaya Kansai Corporation, and Yamaya East Japan Corporation conduct retail sales of alcoholic beverages and foodstuffs through their store operations and mail-order sales. Yamaya Shoryu Corporation handles wholesale and retail sales, both within and outside the group, of goods purchased from manufacturers and wholesalers, while Yamato Kura Shuzo Corporation manufactures and wholesales alcoholic beverages and foodstuffs, forming a vertically integrated structure. The segment provides value to customers through an integrated process from procurement and importing to store sales, achieved via efficient logistics and distribution. As of the end of March 2026, the segment operated 356 stores.

Recent Overview

Sales and profit declined significantly due to the reversal of prior-year rush demand and a decrease in inbound sales of high-priced Western liquor

In FY2026 (ending March 2026), net sales in the Liquor Retailing Business were ¥129,718 million (down 0.9% year on year), and segment income was ¥2,738 million (down 31.4% year on year). The results were directly impacted by the reversal of the prior-year boost from rush demand ahead of manufacturers' price increases for beer-type beverages and whisky, compounded by a reversal in bulk purchases of large-format whisky and a decline in inbound sales of high-priced Western liquor. On the other hand, the company implemented measures such as holding the "Yamaya Expo" to commemorate the 55th anniversary of its founding, expanding Daiso co-located stores, strengthening its lineup of daily necessities including sales of government stockpiled rice and proposals for disaster-preparedness gift sets, and stimulating demand related to sports viewing. With 6 new store openings and 3 store closures, the segment ended the period with 356 stores.

Key Products

Growth Drivers

• Store network expansion through new store openings (356 stores as of end of March 2026; net sales for the next fiscal year projected at ¥133,200 million, up 2.4% year on year)
• Improved convenience and acquisition of new customer segments through expansion of Daiso co-located stores
• Promotion of renovations of existing stores aimed at capturing inbound demand
• Revitalization of aging existing stores through renewal and rebuild initiatives
• Stimulation of at-home drinking demand linked to sporting events (WBC, Olympics, etc.)
• Expansion of product lineup and services in response to the October 2026 liquor tax reform (unification of beer-type tax rates)
• Reduction in electricity costs through energy-saving equipment and LED lighting updates
• Efficiency gains in vertically integrated procurement and logistics through Yamaya Shoryu

Risks

• Risk of sales fluctuation due to the reversal effect of rush demand ahead of manufacturers' price increases
• Risk of fluctuation in inbound sales of high-priced Western liquor
• Changes in consumer saving mindset and purchasing behavior amid price increases
• Increase in SG&A expenses due to rising energy costs and labor costs
• Need to respond to demand shifts among categories resulting from the October 2026 liquor tax reform
• Risk of delays in new store openings and renovation plans due to rising construction costs
• Risk of impairment losses (¥427 million in impairment losses recorded for the consolidated group as a whole in FY2026, ending March 2026)