YAMANAKA CO.,LTD. (8190) Stock Price

Yamanaka is a retail company that primarily operates a supermarket chain. The company sells fresh produce and daily necessities through its stores, and also engages in food manufacturing, processing, and sales, as well as food service operations alongside its core retail business.

The company's primary customers are local households and individual consumers, with in-store product sales forming the center of its revenue. In addition to store sales, the company generates revenue from processed food sales, food service operations, real estate leasing, and delivery outsourcing services.

The business is divided into two main segments: retail operations and retail-related operations. The company handles in-house food preparation and processing, operates food service establishments, manages logistics and delivery outsourcing, maintains store equipment, and manages store leasing. Additionally, group companies operate sports clubs and manage store leasing, expanding the scope of the business.

The company aims to achieve sustainable growth through a three-year medium-term plan as its core growth strategy, targeting a return on equity (ROE) of 8% or higher by the fiscal year ending March 2027. Recognizing the challenging external environment—including Japan's declining and aging population, competition from e-commerce and drugstores, and rising raw material and energy costs—the company is strengthening its revenue base by maintaining store-based retail as its primary focus. Given that in-store sales remain the center of revenue, the company prioritizes improving profitability in the near to medium term.

In priority investment areas, the company is pursuing a "horizontal expansion of winning formats and strategic capital allocation" strategy. It has positioned three Franterozzé stores in Kawaroku, Yaji, and Shirakabe as flagship locations unique to the Tokai region. Specifically, the company plans to strengthen sales capabilities through expanding Yamanaka's distinctive product lineup, conducting major store renovations, and introducing the latest store formats to existing locations. This approach aims to deliver differentiated products and store experiences while increasing customer visit frequency and average transaction value in surrounding areas.

For new market development and business expansion, the company is diversifying revenue through adjacent businesses tied to retail operations, including processed foods, dining, logistics and delivery services, and real estate leasing. Beyond existing store renovations and new format launches, the company also emphasizes non-store revenue through group subsidiaries, such as sports club operations and property management. These initiatives aim to strengthen the company's regional presence and secure new revenue sources. Additionally, the company is implementing measures to improve investment efficiency through capital allocation reviews.

Regarding technology innovation, the company has prioritized digitalization and operational efficiency, advancing the introduction of cutting-edge equipment and fixtures in stores, updating core systems, and promoting paperless operations. The company is also focusing on digital promotions for Gratche Card members through the Yamanaka official app, strengthening cashless payment options, and developing digital talent. Through these efforts, the company seeks to improve labor productivity and streamline headquarters operations, simultaneously achieving improved profitability and strengthened customer engagement.