NAFCO CO., Ltd (2790) Stock Price

Nafco primarily sells building materials, DIY products, gardening supplies, household goods, and furniture and home fashion items. The company operates 360 stores as of March 31, 2025, with a primary presence in the Kyushu and Chugoku regions, and additional locations in the Kansai, Chubu, and Kanto regions.

Nafco's stores are primarily large-format locations in suburban areas with ample parking. This format allows the company to serve a wide range of customers, from individual consumers to professional contractors, with a comprehensive product selection and competitive pricing.

Nafco prioritizes differentiation in three areas—people, products, and stores—as its growth strategy. In particular, the company is advancing a dominant market strategy by utilizing diverse store formats tailored to the population of each commercial area. This approach aims to expand market share in regions while also pursuing store expansions and renovations at existing locations.

The company has set a medium-term target of achieving an operating profit margin of 5.0% or higher on sales. This targets improved profitability and sustainable growth. Amid intensifying competition, the company is focused on strengthening competitiveness and enriching its product mix.

Nafco is prioritizing quality improvements in its private brand products and margin enhancement. The company also plans to expand higher-margin imported goods. Through these initiatives, it aims to serve a broad customer base and offer the region's best selection and pricing.

The company is strengthening each business segment against the backdrop of recovering inbound demand and global economic uncertainty. Targeting 100% customer satisfaction, it is working to improve product development and customer service. The company is also enhancing its use of information systems.

As a store strategy, the company is revitalizing existing stores while expanding store locations suited to regional needs. It is advancing market dominance in the Kyushu, Chugoku, Kansai, and Chubu regions, while also considering expansion into the Kanto region and beyond.