Ito-Yokado will begin reviewing its business portfolio in fiscal 2027 and beyond. Its specialty store business and tenant management business will be transferred to Create Link, a subsidiary under York Holdings (HD). Ito-Yokado will concentrate on its food supermarket business and, together with its new parent company Bain Capital, a U.S. investment fund that became its majority shareholder in September, will accelerate the group’s transformation and regrowth.
The announcement was made at a strategy briefing held after the opening ceremony of “York Foods MARK IS Katsushika Kanamachi Store” — the first new store launched under the York HD structure — on September 3.
Seiichiro Ishibashi, President of York HD, said, “On September 1, we launched the new York HD together with Bain Capital. Achieving an IPO in the near future is a common goal for both companies. We will continue our ‘food collaboration’ with Seven & i Holdings, which owns more than 35% of our shares. We also aim to generate revenue by supplying private brand (PB) products that food supermarkets excel at to Seven-Eleven.”
The group will emphasize “integrated operations” as the key to growth. Ito-Yokado and York-Benimaru will concentrate management resources on food supermarkets (food and drug), while operations of general merchandise stores (GMS) will be shifted to Create Link.
Specialty store businesses such as Akachan Honpo, Loft, and Denny’s will also be transferred to Create Link. These specialty store companies will be expanded not only in the group’s “Ario” shopping centers and large-scale GMS, but also in other commercial facilities, with the aim of driving growth and feeding their expertise back into the group.
Under Seven & i Holdings, structural reforms of the superstore (SST) business had been implemented over the past two years. These included closing regional stores, relocating headquarters, and exiting unprofitable businesses to enforce cost reductions. After the merger of Ito-Yokado and York, the group also sought to strengthen its food business by launching the central kitchen PEACE DELI.
Tetsuya Yamamoto, President of Ito-Yokado, stated, “Thanks to our focus on investments to revitalize existing stores in recent years, same-store sales expanded in the first quarter of this fiscal year, and profit margins have also recovered. With one clear ‘winning model’ emerging, it has boosted our internal confidence. Going forward, we will continue enhancing existing store revitalization with the ultimate goal of becoming the No.1 dominant player in the Tokyo metropolitan area.”
Store formats going forward are expected to center around food supermarkets developed through renovations and reconstructions of existing stores, similar to the “York Foods MARK IS Katsushika Kanamachi Store.” Since many existing Ito-Yokado stores occupy prime locations near train stations, there is significant potential for sales gains from revitalization investments.
Naofumi Nishi, Partner and Co-Head of Private Equity at Bain Capital Japan, commented, “Structural reform must continue, but from now on we will shift to offense by strengthening product capabilities and marketing/promotion. Our top priority is investment in existing store revitalization, and if necessary, we are prepared for investments in the scale of hundreds of billions of yen. While maintaining financial discipline, we want to actively support investments in IT/digital, new stores, and M&A.”
