Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seria-co-ltd" target="_blank" data-smartkarma-citation="entities:12989:1" rel="noopener">Seria Co Ltd (2782 JP)</a> operates 100-yen stores throughout Japan, buying products from manufacturers and selling them at a flat price of JPY100 (plus tax).</li>
<li>In FY03/23, sales were JPY212.4bn (+2.1% YoY), operating profit was JPY15.4bn (-26.2% YoY), recurring profit JPY15.6bn (-26.8% YoY), and net income JPY10.3bn (-28.3% YoY).</li>
<li>On January 31, 2024, Seria Co., Ltd. announced a revision of its full-year FY03/24 earnings forecast.</li>
</ul>



Seria Co Ltd (2782 JP) operates 100-yen stores throughout Japan, buying products from manufacturers and selling them at a flat price of JPY100 (plus tax).
In FY03/23, sales were JPY212.4bn (+2.1% YoY), operating profit was JPY15.4bn (-26.2% YoY), recurring profit JPY15.6bn (-26.8% YoY), and net income JPY10.3bn (-28.3% YoY).
On January 31, 2024, Seria Co., Ltd. announced a revision of its full-year FY03/24 earnings forecast.


Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>The ¥100 Shop chains are facing higher COGS on one side and rising wages on the other, a problem when you run a fixed price chain at just ¥100. </li>
<li>Most (except <a href="https://www.smartkarma.com/entities/seria-co-ltd" target="_blank" data-smartkarma-citation="entities:12989:1" rel="noopener">Seria Co Ltd (2782 JP))</a> have reacted by introducing new, higher priced lines led by Daiso.</li>
<li>Watts, the smallest chain, is now catching up and higher priced lines will make up a third of stock by 2027.</li>
</ul>


The ¥100 Shop chains are facing higher COGS on one side and rising wages on the other, a problem when you run a fixed price chain at just ¥100. 
Most (except Seria Co Ltd (2782 JP)) have reacted by introducing new, higher priced lines led by Daiso.
Watts, the smallest chain, is now catching up and higher priced lines will make up a third of stock by 2027.


<ul>
<li>The 100 Yen shop model looked in danger when inflation began to bite and labour costs surged but the sector continues to expand</li>
<li>Their fixed price model meant there was little leeway to offset higher costs through higher prices but a survey shows 90% of respondents visited a Daiso store recently.</li>
<li>While Daiso has adapted quickly and looks to have a bright future, <a href="https://www.smartkarma.com/entities/seria-co-ltd" target="_blank" data-smartkarma-citation="entities:12989:1" rel="noopener">Seria Co Ltd (2782 JP)</a> refuses to adapt and has seen profits plummet.</li>
</ul>


The 100 Yen shop model looked in danger when inflation began to bite and labour costs surged but the sector continues to expand
Their fixed price model meant there was little leeway to offset higher costs through higher prices but a survey shows 90% of respondents visited a Daiso store recently.
While Daiso has adapted quickly and looks to have a bright future, Seria Co Ltd (2782 JP) refuses to adapt and has seen profits plummet.


100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

<ul>
<li>100 Yen shops are expanding more rapidly after several tougher years dealing with the twin problems of labour shortages and higher wages – a particular issue for fixed price retailers.</li>
<li>With more flexible pricing models and high demand for discount retailing, there is optimism again.</li>
<li>Aeon, now the owner of Can Do, plans to double the size of its new acquisition and spread its merchandise across the Aeon empire.</li>
</ul>


100 Yen shops are expanding more rapidly after several tougher years dealing with the twin problems of labour shortages and higher wages – a particular issue for fixed price retailers.
With more flexible pricing models and high demand for discount retailing, there is optimism again.
Aeon, now the owner of Can Do, plans to double the size of its new acquisition and spread its merchandise across the Aeon empire.


Can Do to Double Stores in 5 Years – and Boost Profits Too

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

<ul>
<li>On January 14, I attended a business strategy briefing of CanDo. This was the first business briefing after AEON (8267) consolidated CanDo.</li>
<li>While CanDo's sales are expected to increase mainly through consignment sales, profit margin will improve due to cost reduction, and the key will be to expand sales of attractive products.</li>
<li>Since the management framework has changed by joining AEON, the corporate governance will be paid attention whether this change will be good for the sustainable growth of the corporate value.</li>
</ul>


On January 14, I attended a business strategy briefing of CanDo. This was the first business briefing after AEON (8267) consolidated CanDo.
While CanDo's sales are expected to increase mainly through consignment sales, profit margin will improve due to cost reduction, and the key will be to expand sales of attractive products.
Since the management framework has changed by joining AEON, the corporate governance will be paid attention whether this change will be good for the sustainable growth of the corporate value.


Japan's Governance: CanDo (2698) Business Strategy Meeting

Japan

CAN DO CO., LTD. operates 100 Yen shop retail stores.  The Company also wholesales merchandises to franchise stores.  Can Do's product lines include household goods and dry foods.

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Can Do Co Ltd (2698 JP)

Seria (2782): Q3 FY03/24 Update

Seria Co Ltd, a 100-yen store chain in Japan, saw a decrease in profits in FY03/23 and revised its FY03/24 earnings forecast.

Shared Research

Watts Finally Reacts to Margin Squeeze

Japanese ¥100 Shop chains are grappling with increased costs and wages, prompting some to introduce higher priced lines. Watts plans to have one...

Michael Causton

100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

Seria has always extracted the highest profits from the 100 Yen sector even as its larger competitor, Daiso, grew faster. Now, with labour and...

Michael Causton

Can Do to Double Stores in 5 Years – and Boost Profits Too

While Seria and Daiso have grown significantly over the last decade, Can Do has barely moved. Now backed by Aeon, Can Do plans to double in size,...

Michael Causton

Japan's Governance: CanDo (2698) Business Strategy Meeting

I attended a business strategy briefing of CanDo on January 14, and this article will discuss the outlook for business expansion and the corporate...

Metrical Inc

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Seria (2782): Q3 FY03/24 Update

​Seria Co Ltd, a 100-yen store chain in Japan, saw a decrease in profits in FY03/23 and revised its FY03/24 earnings forecast.

Shared Research

Watts Finally Reacts to Margin Squeeze

​Japanese ¥100 Shop chains are grappling with increased costs and wages, prompting some to introduce higher priced lines. Watts plans to have one...

Michael Causton

100 Yen Shops to Hit ¥1 Trillion This Year but Seria's Model Squeezing Profits

Seria has always extracted the highest profits from the 100 Yen sector even as its larger competitor, Daiso, grew faster. Now, with labour and...

Michael Causton

Can Do to Double Stores in 5 Years – and Boost Profits Too

While Seria and Daiso have grown significantly over the last decade, Can Do has barely moved. Now backed by Aeon, Can Do plans to double in size,...

Michael Causton

Japan's Governance: CanDo (2698) Business Strategy Meeting

I attended a business strategy briefing of CanDo on January 14, and this article will discuss the outlook for business expansion and the corporate...

Metrical Inc

Seria Co Ltd, a 100-yen store chain in Japan, saw a decrease in profits in FY03/23 and revised its FY03/24 earnings forecast.

Japanese ¥100 Shop chains are grappling with increased costs and wages, prompting some to introduce higher priced lines. Watts plans to have one...