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President’s Message

President's Message

We will continue to improve corporate value so that we may provide customers with an enriched and flexible lifestyle.

With the aging of society, these are ever more people wishing for lifelong health and beauty. Customer needs have also diversified. We have grown by pursuing the creation of stores that are familiar to and loved by all the people throughout the regions based on our mottos "kindness first" and "Trust first" and support our customer's efforts to create healthy and enriched lives. Expectations will become higher than ever for conveniently located drugstores where anyone can easily engage in consultations and enjoy improved awareness of self-medication by which they can manage their own health.

In the drugstore sector, the operating environment remained challenging, with competition to open stores and reduce prices continuing to intensify and the pace of consolidation and realignment accelerating.

In the fiscal year ended May 15, 2018, the TSURUHA Group continued to offer a high level of customer service mainly through advice-based sales, and implemented a number of strategic business initiatives. Specifically, in addition to focusing on advice-based sales of high value-added products that meet customer needs, the Group worked to address the shrinking market caused by Japan’s aging population and intensifying competition, pushing ahead with store renovations focused on groceries sections, aiming to improve convenience for customers. Also, in the Group’s private brands, M’s one and Medis’ one, we overhauled the product lineup to improve efficiency and increased quality by updating products and implementing other initiatives.

In store openings, the Group targeted specific areas for multiple store openings as part of its area dominance store-opening strategy and implemented a scrap and build approach for existing stores. In the fiscal year under review, the Group opened 130 new stores and closed 35 existing stores. Kyorindo Group Holdings Co., Ltd. (Kyorindo HD) became a subsidiary of the Company on September 29, 2017. As a result, 78 drugstores and dispensing pharmacies in Shizuoka Prefecture operated by Kyorindo Co., Ltd., a subsidiary of Kyorindo HD, became part of the Group, resulting in a total of 1,931 directly managed stores at the end of the fiscal year.

As a result of the above, for the fiscal year under review, TSURUHA Holdings reported net sales of ¥673,238 million (up 16.7% year on year), operating income of ¥40,236 million (up 14.0%), ordinary income of ¥41,610 million (up 12.9%), and net income attributable to owners of the parent of ¥24,798 million (up 6.7%).

We will continue to strengthen our reliance-based ties with all people nationwide, so we sincerely hope that we will continue to receive your support as Japan's number one drug store chain.

Masashi Horikawa
President and Representative Director

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