[Company analysis] ABC-Mart, Inc. (エービーシー・マート)

「ABC-Mart, Inc. (エービーシー・マート)」operates shoe / clothing retail chain store all over Japan. As of November 2019, this company owns 1,020 stores in Japan and 312 stores overseas. Around 60% of domestic stores are located in the urban areas such as Tokyo metropolitan area and the Kansai area. In oversea, the number of stores in South Korea is the largest(258 stores). The number of consolidated employees is approximately 9,306.

 

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	ABC-MART,INC.
Company name (Japanese)	エービーシー・マート
Date of establishment	Thursday, June 6, 1985
Headquarters location	〒150-0043 東京都渋谷区道玄坂一丁目12番1号
Capital	19,972
Consolidated sales	266,703
Consolidated operating profit	43,929
Consolidated total assets	296,941
Consolidated capital	259,315
Capital adequacy ratio	87.3%
Consolidated number of employees	9,306

 

 

 

2. Summary and Features

 
In 1985,「International Trade Corporation(国際貿易商事)」was established in Waseda, Tokyo as a trading company that imports and distributes shoes and clothing. In 1990,「ABC Mart」was established as a retail store, and then the two companies had conducted business integration through the reorganization, and created the current form. As mentioned above, since this company was an import trading company at the time of our founding, so they have advantages in oversea network, and obtaining trend information of global market.

However, the current Japanese shoe market is in a very depressed state. Nonetheless,「ABC Mart」continues to grow each year and continues to acheive a profit margin of 20%, which is unusual for a shoe retailer. One of the driving forces is the introduction of the SPA method. This allows「ABC Mart」to sell relatively low priced and high quality products unlike other retailers. In addition, they utilize the inventory of online mail-order to provide a store reception and fitting service for products, even though that are not in stock at the offline store.

Since the 1990s, this company has acquired trademark rights for popular overseas brands such as「Hawkins」and 「VANS」, this company use them as their own brands. Also, by utilizing supply network of「Hawkins」and「VANS」, it is possible to procure goods cheaply from global brand manufacturers such as「Nike」and 「Adidas」, and this contributes to the high operating margin of「ABC Mart」.

Another advantage is that half of the NB products from「Nike」and「Adidas」are bespoke products or limited products planned and proposed by「ABC Mart」. At the level of global brands such as「Nike」and「Adidas」, it is very hard to read the Japanese market trend. However, by conducting feedback Japanese customer opinion to those global brand companies,「ABC Mart」can procure the product that optimized in Japan.

 

 

 

3. Major Business

 

■ Retail of shoes, clothing, miscellaneous goods, planning, manufacturing and sales of shoe products

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		238,952	254,283	266,703
Consolidated operating profit		41,860	43,386	43,929
Consolidated total assets		253,916	279,697	296,941
Consolidated net assets		220,080	242,507	259,315
Breakdown of sales	Japan domestic business	180,101	187,604	192,742
	Oversea business	59,759	67,657	75,063
	Adjustments	-908	-979	-1,102