[Company analysis] Marui Group Co., Ltd. (丸井グループ)

「Marui Group Co., Ltd. (丸井グループ)」is simultaneously developing three businesses: retail stores, credit cards, and distribution. Among them, their core businesses are operation of the fashion building「Marui」and credit card company「Epos Card」. They are in a competitive relationship with the「Tokyu Group(東急グループ)」, which operates「Tokyu Hands(東急ハンズ)」and「Tokyu Department Store(東急百貨店)」. The number of consolidated employees is approximately 5,326.

 

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	Marui Group Co., Ltd.
Company name (Japanese)	丸井グループ
Date of establishment	Tuesday, February 17, 1931
Headquarters location	〒164-8701 東京都中野区中野4丁目3番2号
Capital	35,920
Consolidated sales	251,415
Consolidated operating profit	41,184
Consolidated total assets	890,196
Consolidated capital	284,752
Capital adequacy ratio	32.0%
Consolidated number of employees	5,326

 

 

 

2. Summary and Features

 
The「Marui Group」has been selling furniture in installments since its establishment. After the World War, they expanded their business with a publicity phrase of “500 yen for 5,000 yen shoping!” in department store business. In January 1960, they issued the first credit card in Japan named "Credit(クレジット)". From 1972, this company entered the clothing and fashion distribution business, targeting young people and developed stores in the form of fashion buildings.

This is similar concept of「Parco」from「J. Front Retailing(J.フロント リテイリング)」which is in a competitive relationship. From its appearance, it seems like department store but strictly speaking, it is not department store. However,「Marui Group」is not an official member of the Japan Department Stores Association and their many stores do not have an underground food store, so「Marui」does not name itself a department store.

Due to the revision of the Money Lending Business Law in 2007 and the aftershock caused by Subprime mortgage crisis,「Marui Group」has also experienced a deterioration in business performance. To overcome this, they started to change their fashion-oriented product line up to lifestyle product line up. Until now,「Marui」has been implementing department store-type contracts in which rental income fluctuates depending on changes in tenant sales. However, in order to secure stable profits, they are trying to change the contract with receiving regular rental income. 

At present,「Marui」has a strong image of fashion, but in terms of management, they are equally or even more focused on the financial field. Since that time, they utilize their installment sales know-how to financial business. In other words, by encouraging installment sales in fashion store, they can make a profit not only in clothes sales but also in financial aspect such as installment fee.

In fact, the recent operating income of the「Marui Group」, while the retail business has been declining steadily, the fintech business(credit card department) has been increasing. The reason for this is that the number of stores that can make installment payments has increased. As of March 2016, the number became more than one million stores, this increased the profitability and stability of Marui's fintech business.

 

 

 

3. Major Business

 

■ Retail / Distribution business
This company is running the fashion building "Marui". They are also developing and operating our own brand including online shopping. As a platform business, they carry out sales store interior, advertising, commercial facility business, and general building management business.

■ Fintech business
They focus on credit card and cashing businesses. In addition to this, they also carry out service business such as rental guarantee, insurance, real estate and information system business.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		237,022	240,469	251,415
Consolidated operating profit		31,253	36,365	41,184
Consolidated total assets		806,575	865,887	890,196
Consolidated net assets		274,339	274,900	284,752
Breakdown of sales	Retal business	142,113	132,241	125,410
	Fintech business	94,909	108,227	126,005