AB&Company Co.,Ltd. (9251) Stock Price

AB&Company is a pure holding company operating a beauty salon chain across Japan. Through 13 consolidated subsidiaries, the group operates a total of 1,100 salons, comprising 447 company-owned stores and 653 franchise locations. The company has adopted an unconventional commission-based model that allows stylists to earn high compensation based on their sales performance.

Revenue comes from company-owned salon sales, royalty income from franchise headquarters, and interior design business operations. At company-owned salons, the commission-based contract system achieves an average stylist annual salary of 4.1 million yen, exceeding the national statistical average of 3.71 million yen. In the franchise business, the company accelerates nationwide expansion while maintaining strong cohesion through its unique model of appointing stylists trained internally as franchise owners rather than external candidates.

The business is divided into three segments: the company-owned salon operation segment, where 10 subsidiaries directly operate salons; the franchise business segment, where B-first Co., Ltd. provides management guidance and product sales to franchisees; and the interior design segment, where Tate.LABO Co., Ltd. reduces opening costs and construction timelines through in-house store design and construction. The company has established a highly competitive business model by leveraging efficient customer acquisition through "HOT PEPPER Beauty" and controlling fixed costs through expansion into regional and secondary-location stores.

AB&Company Group has positioned the nationwide expansion of beauty salon chains centered on franchise operations as a pillar of its growth strategy. Under the corporate philosophy of "providing happiness and joy to customers with a stylist-first belief," the company aims to expand its business by addressing industry challenges such as excessive working hours and low wages. The company has established key performance indicators including number of stores, stylists per store, customers per stylist, and average customer spending, while also emphasizing ROE from a shareholder cost of capital perspective.

The company's competitive differentiation lies in its unique franchise model. Rather than recruiting external owners, it appoints stylists cultivated within the Agu. Group as franchise owners, thereby achieving strong sense of belonging and cohesion. As of October 2025, 39 franchise owners operate locations nationwide. This internal development model keeps attrition risk low while enabling the sharing of operational expertise and avoidance of cannibalization. B-first Co., Ltd., the franchisor, provides multifaceted support including talent recruitment, marketing, fundraising, and management oversight to strengthen owners' operational foundations.

For new market development, the company is accelerating expansion into regional areas. By avoiding concentration in the Kanto region and major metropolitan areas and actively promoting store openings in regional cities throughout Japan, it pursues revenue opportunities in less competitive markets. The company plans to further accelerate this regional expansion strategy through continuous development of franchise owners.

As a human resources innovation, the company has established a proprietary training program that develops beauty school graduates into stylists within approximately one year. Through implementation of a fully commission-based compensation system and support for diverse career paths, the company attracts a wide range of talent, including beauty professionals with strong entrepreneurial aspirations and those with childcare responsibilities. The company leverages referral recruitment from stylists as a primary talent acquisition method, creating a positive cycle where provision of a work-friendly environment promotes further talent inflow.