[Company analysis] Takashimaya Co., Ltd. (高島屋)

「Takashimaya Co., Ltd. (高島屋)」is a department store that originated in the Kansai region. It has the third largest sales as a department store chain in Japan after「Isetan Mitsukoshi Holdings Ltd.(三越伊勢丹ホールディングス)」and「J. Front Retailing Co., Ltd.(J.フロント リテイリング)」. However, as a the independent department store entity, this company has largest sales in Japan. The number of consolidated employees is approximately 13,631.

 

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	Takashimaya Co., Ltd.
Company name (Japanese)	高島屋
Date of establishment	January 10, 1831
Headquarters location	〒542-8510 大阪府大阪市中央区難波五丁目1番5号
Capital	66,025
Consolidated sales	912,848
Consolidated operating profit	26,661
Consolidated total assets	1,078,130
Consolidated capital	461,585
Capital adequacy ratio	42.8%
Consolidated number of employees	13,631

 

 

 

2. Summary and Features

 
「Takashimaya」was established in 1831, as a used clothing and kimono shop in Takashima City, Kyoto. Since 1876, this company has been involved in the trade business and received numerous awards in the field of art dyeing products since the Kyoto Exposition of 1877. By this event, the name of「Takashimaya」has become known nationwide. From then on, they continued to expand their business in domestic level. they opened the current Osaka store in the Osaka Namba area in 1932 and the Nihonbashi store in Tokyo in 1933.

As of 1958, the first Japanese department store in United States,「Takashimaya New York」 was opened in New York. And in 1989, this company's sales exceeded 1 trillion ye and this is the first time in the history of Japanese department store industry. Nowadays,「Takashimaya」has the third largest sales, after「Isetan Mitsukoshi Holdings Ltd.(三越伊勢丹ホールディングス)」and「J. Front Retailing Co., Ltd.(J.フロント リテイリング)」. However, considering the fact that the above two companies were established by business integration, as a the independent department store entity,「Takashimaya」still has largest sales in Japan.

Currently, they have 19 stores in Japan and 3 stores overseas(Singapore, Shanghai, Vietnam), and the department store business accounts for 86% of total sales.「Takashimaya」is characterized by the fact that it directly manage many large stores with the floor area of ​​50,000 m2 or more. Therefore, the sales per store are comparatively high. In case of the Osaka store, Yokohama store, Nihonbashi store, Kyoto store, and Shinjuku store, all of them have annual sales of 100 billion yen each. They also carry out real estate businesses, and the operating income is very high, so it can be comparable to the entire department store business.

Recently, the department store market in Japan itself has been shrinking continuously since 1998. So many companies conducted large-scale of restructuring or business integration with others. For example, 「J. Front Retailing」was established by business integration between two famous department store chain,「The Daimaru, Inc.(大丸)」and「Matsuzakaya Co., Ltd.(松坂屋)」. And「Mitsukoshi Isetan」was established by business integration in 2008 between「Mitsukoshi(三越)」and「Isetan(伊勢丹)」.

On the other hand,「Takashimaya」choose individual route without business integration. In particular, they decided to develop real estate business as the core business. Actually, in department store business,「Takashimaya」has a image of expensive price and old-fashioned items, so it has relatively small appeal to young people. And the number of overseas stores is smaller than that of their competitors.

 

 

 

3. Major Business

 

■ Department store business
This is the core business of「Takashimaya」and accounts for over 80% of total sales. However, the profit rate is low.

■ Real estate business
They are developing the area around the sales floor. The profit margin is about 20%, which is quite high.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		923,601	907,805	912,848
Consolidated operating profit		34,000	35,318	26,661
Consolidated total assets		986,464	1,035,807	1,078,130
Consolidated net assets		421,890	449,526	461,585
Breakdown of sales	Department store business	797,253	784,794	792,045
	Real estate business	47,923	47,476	43,681
	Financial business	13,414	14,187	14,944
	Construction material business	30,874	25,916	24,795
	Others	34,135	35,430	37,381