[Company analysis] Family Mart Uny Holdings Co., Ltd. (ファミリーマート)

「Family Mart Uny Holdings Co., Ltd. (ファミリーマート)」is 2nd largest convenience store chain in Japan after「Seven Eleven Japan(セブンイレブンジャパン)」and it is a company that started as a subsidiary company of「Seibu Railway」. Currently, due to the poor performance of the Seiyu Group,「Itochu Corporation(伊藤忠商事)」become the largest shareholder of「Family Mart」. The number of consolidated employees is approximately 15,139.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	FamilyMart Uny Holdings Co., Ltd.
Company name (Japanese)	ファミリーマート
Date of establishment	Tuesday, September 1, 1981
Headquarters location	〒108-0023 東京都港区芝浦3-1-21
Capital	16,659
Consolidated sales	617,174
Consolidated operating profit	51,553
Consolidated total assets	1,372,117
Consolidated capital	589,737
Capital adequacy ratio	43.0%
Consolidated number of employees	15,139

 

 

 

2. Summary and Features

 
「Family Mart」began in 1973 with a CVS(Convenience, Value, and Service) experimental store set up in Saitama Prefecture by the「Seiyu Store(西友ストアー)」. In 1981,「Family Mart」became independent from「Seiyu Store」, Still all of the founding members of「Family Mart」were the previous member of「Seiyu Store」. After that, they actively promote franchising through joint ventures with leading local companies. This continued even after the collapse of the bubble economiy in Japan. Eventually, in the mid-1990s,「Family Mart」became 3rd largest convenience store in Japan after「Seven Eleven Japan」and「Lawson」.

Actually, unlike「Seven Eleven Japan」which was started by partnering with an American company, they were developing and operating their own chain system. In particular, 「Family Mart」started their own CVS business, so there were no restrictions on the business areas. So they expanded their business in oversea market, especially by the joint venture with local companies in Asian countries, and it is obviously earlier than their competitors. Currently, 「Family Mart」has 16,426 stores, the second largest in the convenience store market.

In 1994, Seiyu Group conducted reconstructuring on「Tokyo City Finance(東京シティファイナンス)」,　their subsidiary. For this, they sold the share of「Family Mart」to「Itochu Corporation」, and by this event,「Itochu Corporation(伊藤忠商事)」become the largest shareholder of「Family Mart」.

While「Seven-Eleven Japan」, which top sales convenience store and「Lawson」has 3rd largest sales, are focusing on increasing the number of stores in Japan. However in the case of「Family Mart」, they consider condition of the stores is more important than the number of stores. That is the reason they even closed some store in the red.

Regarding financial business,「Seven Eleven」and「Lawson」took action in order to acquire a bank license.  but 「Family Mart」has strong connection with「Itochu group」that is strong in the financial field, so this company has advantages in this field. In the food business, they are actively promoting cooperation with companies outside the Group, for example, they recently forming a tie-up with「Don Quijote Co., Ltd.(ドン・キホーテ)」.

 

 

 

3. Major Business

 

■ Convenience store business by franchise system

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated revenue		0	637,013	617,174
Consolidated operating profit		0	41,671	51,553
Consolidated total assets		0	1,731,787	1,372,117
Consolidated net assets		0	588,659	589,737
Breakdown of consolidated operating profit	Convenience store business	0	558,673	524,173
	General retail business	0	716,626	638,200
	Substitues by Non-continuous business	0	-638,287	-545,208
	Adjustments	0	1	9