ECONOS Co., Ltd (E31588) Stock Price

Econos operates a reuse business centered on buying and selling used goods, balancing environmental protection with local economic development. The company operates approximately 70 stores throughout Hokkaido, providing consumers with accessible opportunities to participate in reuse.

The primary customer base spans a wide demographic from children to seniors. Core revenue comes from in-store sales profits and margins on buy-sell transactions. Additional revenue streams include logistics-related services such as home pickup buying, estate liquidation, and 3R (Reduce, Reuse, Recycle) promotion initiatives. The "Other" segment is supplemented by real estate operations.

The business comprises five retail formats operated as franchises: Hard Off (electronics and musical instruments), Off House (furniture, clothing, and household goods), Hobby Off (toys and collectibles), Garage Off (automotive products), and Book Off (books, music, and games). The company strengthens its buying power by establishing specialized expertise and training systems for each format, and achieves attractive product assortments through inter-store inventory transfers and multi-format store development.

The company operates approximately 70 stores throughout Hokkaido and positions stable growth centered on the reuse business as a pillar of its growth strategy. Specifically, from the perspective of enhancing corporate value, the company has identified "operating profit margin on sales" and "return on equity" as clear management indicators, and aims to improve these metrics by expanding sales at existing stores and raising profitability. Additionally, the company places emphasis on the point that its reuse business contributes to reducing carbon dioxide emissions, positioning coexistence with the environment and local communities as a prerequisite for business growth.

Priority investment areas focus on human resource development and operational efficiency at stores. The company believes that advanced product knowledge and customer service skills are key to increasing purchases, and operates proprietary operational manuals across all stores while continuously conducting product training sessions and regular customer service training involving all employees, including part-time and temporary staff. The company has also announced a policy to strengthen cost control through rigorous verification of cost-effectiveness, optimal personnel allocation, and store operational efficiency, stating that this approach creates differentiation against competitors and individual transactions.

For new market development and business expansion, the company is advancing plans to strengthen a dual sales model combining in-store sales with online sales. The company is expanding logistics-related services such as on-site purchasing and estate liquidation, and is working to increase sales opportunities by accelerating the speed from purchase to product preparation. Furthermore, the company aims to expand its business portfolio by leveraging complementary revenue sources such as reuse-related adjacent businesses and real estate, and by making timely and appropriate investments in response to changes in market conditions.

Regarding technological innovation, the company is advancing system investments to strengthen inventory management and online sales infrastructure, and to improve efficiency in logistics and processing. The company is investing in logistics and processing equipment to support rapid product preparation, implementing tools to improve online order intake and inquiry response, and is also considering and executing digitalization to enhance the accuracy of appraisals and internal controls. The company is also working to strengthen fraud prevention measures and internal controls, aiming for long-term growth through building a management foundation with high transparency.