Genkey Drugstores Co., Ltd., continues to grow by efficient expansion strategy

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Covid-19 outbreak increases drugstores sales


 Japanese consumers flock to drugstores to buy face masks and disinfectant items as coronavirus continues to spread throughout the country. Japanese drugstores sell medicines and cosmetics that bring lucrative sales as well as daily necessities such as masks, frozen foods, and even fresh foods that consumers need daily in high volume. 
Genkey Drugstores Co., Ltd., continues to grow by efficient expansion strategy

 Those drugstores have been increasing their sales and profit continuously, expanding number of their stores at a pace of nearly 5% recently by capturing Japanese consumer’s needs and depriving share of other retail businesses. Especially in the Chubu region, drugstores keep growing steadily resulting in a fierce competition. 
Genkey Drugstores Co., Ltd., continues to grow by efficient expansion strategy

 Among those drug stores, Genkey Drugstores Co., Ltd., headquartered in Sakai City, Fukui Prefecture, continues to grow mainly in Fukui, Ishikawa, Gifu and Aichi prefectures and has become one of major drugstore chains in the region. The number of stores as of the end of this fiscal year is expected to reach about 300. 

 Amid coronavirus outbreak, Genkey Drugstores increases sales in March 2020 by 22% month on month thanks to growing sales of masks and disinfectants although it faces intensified competition and a severe business environment such as rising logistics and labor costs. 
Genkey Drugstores Co., Ltd., continues to grow by efficient expansion strategy

 According to the company's financial results for the June-December period announced on January, net sales were 56.3 billion yen, up 8.5% year on year, but operating income was  1.1 billion yen, down 43.7%, and net income was 700 million yen, down 50.1%. 

 Going forward, the company plans to maintain its growth by opening mainly “regular stores” that have standardized floor area, layout, and operations. Those stores have same floor size of about 1,000 square meters and exactly same shelves arrangement enabling the company standardized staff training and operations making their efficiency improved. 

 The company also opened a new distribution center in Anpachi-cho, Gifu Prefecture, with investment of  5 billion yen at the end of June this year to expand further the fresh foods sector dealing with vegetables, meat, and side dishes. The company plans to open 230 new stores in coming three years to June 2022, aiming for sales of 150 billion yen and an operating margin of 5%.

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