SHIMACHU CO.,LTD. (E03074) Stock Price

Shimotsu is a retail chain with home-related products retail as its core business. The company offers a wide range of products related to homes and daily living, including furniture, interior goods, household items, and gardening supplies. Through its store network across the country, the company provides comprehensive support for customers' home environment needs.

The company's primary customers are individual consumers who purchase products when building or renovating homes or when their lifestyles change. Revenue is primarily generated through in-store product sales. Given the nature of home-related products, the business has a relatively stable structure supported by consistent demand. In addition to product sales, the company also provides ancillary services such as delivery and assembly services.

The company's business consists of a single segment: "home-related products sales." Stores stock a wide range of products necessary for homes, from furniture to household goods, enabling one-stop shopping.

Shimotsu has set a target of achieving 5.0% ROE as the final year of its "Medium-Term Management Plan 2021," and is advancing profitability improvements through structural reform projects. The company positions operating revenue, operating profit, and ROE as key management indicators, and aims to maximize corporate value through their improvement. While capitalizing on increased home-related demand driven by longer indoor time due to the COVID-19 pandemic, the company is working to build a sustainable growth foundation for the medium to long term.

Store development and business format development serve as pillars of the growth strategy. The company is restraining new openings of conventional stores while actively promoting renovations and expansions of existing stores. Shimotsu is focusing on "shop in shop" format openings to achieve highly profitable store expansion with limited investment. Through the rollout of lifestyle-oriented sales floors and the introduction of new tenant and franchise operations, the company is advancing store development that flexibly responds to regional customer needs. These initiatives aim to simultaneously improve customer traffic and optimize sales floor efficiency.

In new market development, the company is focusing on establishing e-commerce capabilities in the interior furnishings sector to diversify sales channels in response to digital advancement. While maintaining its basic store layout—home center products on the first floor and furniture and home fashion products on the second floor—Shimotsu is exploring new customer experiences that blend online and offline channels. Additionally, the company is actively pursuing M&A to expand business scale and capture new growth opportunities, and is considering strategic investments in response to industry consolidation trends.

In technological innovation and operational efficiency, the company is advancing cost structure reform through the adoption of predictive ordering systems, logistics transformation, and labor-saving technologies. Shimotsu is improving operational efficiency and security through information system upgrades, while strengthening management infrastructure through human resources system reforms and brand management restructuring. These measures aim to improve gross margins and control selling, general, and administrative expenses, thereby enhancing profitability. The promotion of health and wellness management is also positioned as an important initiative, with the goal of activating the entire organization through improved employee performance.