ARCS COMPANY,LIMITED (9948) Stock Price

Market cap
¥219.4B
P/E ratio
16.4x
Arks operates supermarkets, home centers, and pharmacies across Japan through 21 affiliated companies, also providing travel, real estate, and maintenance services.

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Business Overview

Arks is a corporate group primarily engaged in supermarket operations. Arks and its affiliated companies consist of a total of 21 companies and conduct retail-related businesses centered on supermarkets. Specifically, this includes companies operating supermarkets focused on food products, home centers selling home-related products, and companies engaged in pharmaceutical retail.

Arks' retail operations include Larzu Co., Ltd., Universe Co., Ltd., and Beljoice Co., Ltd. These companies operate community-focused supermarkets and provide products necessary for daily life. Additionally, Eldi Co., Ltd. operates home centers handling home-related products.

Beyond retail, Arks also operates travel and building maintenance businesses. Eldi Co., Ltd. conducts travel agency operations and provides building maintenance services including facility cleaning and equipment maintenance. Through these operations, Arks achieves diversified business expansion.

Real estate rental operations are also an important business segment for Arks. Multiple affiliated companies, including Larzu Co., Ltd. and Universe Co., Ltd., conduct real estate rental operations. This allows Arks to leverage real estate assets and secure stable revenue.

Furthermore, Arks operates property and casualty insurance and life insurance agency businesses, as well as wholesale operations. Eldi Co., Ltd. conducts insurance agency operations, while Hokkaido CCC Co., Ltd. and Tohoku CCC Co., Ltd. engage in food wholesale. Through these operations, Arks is positioned to meet diverse customer needs.

Arks also handles industrial and general waste collection and transportation services, as well as construction operations. Eldi Co., Ltd. conducts waste collection and transportation services and provides design and construction of building interiors and exteriors. Through these operations, Arks demonstrates environmental responsibility and contributes to the construction sector.

Management Policy

Arcs is founded on the principle of contributing to enriched living by providing valuable products and services at low prices to local communities. Established in 2002, the company aims to enhance corporate value while safeguarding the region's essential services. Arcs operates community-focused supermarkets and prioritizes delivering fresh and safe food products to customers.

As its medium to long-term management strategy, Arcs pursues the "Yatsugatake Range Management" approach, seeking to maintain close proximity between the company and its customers. The company is advancing operational reforms across the entire group, leveraging core systems and improving productivity. Additionally, Arcs is pursuing efficiency through digital transformation initiatives and the consolidation of commercial and logistics operations.

In sustainability promotion, Arcs emphasizes coexistence with local communities and environmental stewardship. The company implements specific activities based on its sustainability promotion policy. A dedicated Sustainability Promotion Division manages environmental initiatives and social contributions across the entire group.

Arcs prioritizes low-cost operations and productivity improvement in response to changing economic conditions. The company differentiates itself from competitors through strengthened pricing strategies and expanded product lineups. Additionally, Arcs is advancing digital transformation to achieve cost reduction and productivity gains.

Arcs sets targets for improving ROE and ROA, emphasizing profit growth and efficient capital deployment. The company aims to raise profit levels through new store openings, store renovations, and M&A initiatives. Arcs is strengthening efforts in digital technology utilization and productivity improvement to pursue sustainable growth.

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