Aeon announced its growth strategy for the supermarket (SM) business on December 22. Effective March 1, the Kanto metropolitan area will see management integration of MaxValu Kanto—under United Super Markets Holdings (U.S.M.H.)—with Daiei’s Kanto operations and Aeon Market, giving birth to a new company, Aeon Food Style. In the Kansai region, Daiei and Koyo will integrate operations, aiming to leverage scale advantages in products and logistics, while pursuing synergies across the entire Aeon Group.
Until now, Aeon has been building core companies with substantial sales volumes in each region to address inflation-driven cost increases and consumers’ preference for low prices. This includes reorganizations in Hokkaido (Aeon Hokkaido), Tohoku (Aeon Tohoku), Tokai (MaxValu Tokai), Chugoku-Shikoku (Fuji), and Kyushu (Aeon Kyushu).
Aeon President Akio Yoshida stated, “The Kanto metropolitan and Kansai regions are among the few remaining growth markets in Japan, where population inflow continues. While competition is intensifying with rivals entering aggressively, we aim to lead the competitive landscape through this reorganization. In particular, in the Kanto area, we will transform our store models centered on a reborn U.S.M.H. exceeding 1 trillion yen in sales. By optimizing product procurement and logistics, and consolidating human resources, we seek to strengthen our business competitiveness.”
The new company, Aeon Food Style, formed by integrating the three entities, will operate 126 stores with sales of 180 billion yen. While it accounts for 65% of stores in Tokyo Prefecture—46% within the 23 wards alone—it had previously been unable to invest sufficiently in existing stores, failing to fully capitalize on its prime locations.
Going forward, it will open its first store under the new “fresh deli expansion and price-enhanced” model in early March. Over the next five years until fiscal 2030, all stores will be renovated to this new model. U.S.M.H. President Takemi Ide emphasized, “Freshness, vibrancy, enjoyment, and affordability are the concepts of the new model. We want to enhance proposals to families by enriching fresh deli products.”
Through this regional reorganization, Daiei will concentrate its SM business in the Kansai region, its birthplace of origin. It aims to achieve regrowth by reviewing product strategies tailored to the region and optimizing business operations.
The management integration with Koyo will result in 187 stores and 300 billion yen in sales. Moving ahead, it will strengthen the utilization of Koyo’s fresh deli processing and cooking expertise, as well as joint development of products like meat, fish, and prepared foods. By fusing the strengths of both companies, it will develop new store formats and pursue expansion.
Daiei President Yasuo Nishitoge said, “Next spring, we will open new stores as the reborn Daiei. Currently, Daiei and Koyo operate under seven different brand names, but we will proceed with rebranding toward consolidation. As a company born and raised in Kansai, we are committed to deeply rooted regional business operations.”
