York Holdings to Invest 150 Billion Yen Over Three Years in Supermarket Revamps and Private Brand Expansion

York Holdings has announced a plan to invest approximately 150 billion yen in growth initiatives, including new store openings and renovations of existing supermarkets, by the fiscal year 2028. This represents an increase of about 40 billion yen from the initial plan. The investment is aimed at strengthening competitiveness as the company targets a potential initial public offering (IPO).

The company held its first business strategy briefing since coming under the umbrella of U.S. investment fund Bain Capital in September 2025. President Seiichiro Ishibashi emphasized a shift in focus, stating, "Structural reforms are complete, and based on those results, we are turning the wheel toward a growth strategy." The core of the investment will be directed toward food supermarket chains such as Ito-Yokado and York Benimaru, with 85% allocated to new store openings and store renovations.

Plans include renovating approximately 100 stores by fiscal 2028, representing over 20% of the total. In fiscal 2026, flagship stores like Omori and Ario Ichihara will be renovated, along with 10 York Benimaru stores in the Tohoku region. Renovated stores from the previous fiscal year have already achieved a 3-6% increase in sales compared to non-renovated stores, indicating early success. Delicatessen factories and digital investments are also part of the plan.

On the product side, the company aims to expand its private brand (PB) offerings, particularly the low-price "Seven The Price" line, which is priced 10-20% lower than national brands. The number of these items is set to increase by about 30% to 400 products by February 2027. Low-price PB sales for Ito-Yokado and York Benimaru are targeted to triple by fiscal 2028 compared to fiscal 2025, while overall PB sales are to increase by 30% over three years.

The aggressive investment follows a period of restructuring, including the closure of 34 stores over two years. These efforts have yielded strong results, with Ito-Yokado's operating profit for the fiscal year ending February 2026 reaching 22.2 billion yen — a sevenfold increase and the highest in 22 years. Subsidiaries such as Loft and Denny's Japan have also posted record profits. Under Seven & i Holdings, investment had been skewed toward convenience stores, leaving supermarkets underinvested.

Despite the positive outlook, competition remains intense in the Tokyo metropolitan area, with rivals like Life Corporation and Aeon's small-format supermarkets expanding. Consumer spending faces headwinds from rising prices and stagnant real wages. The company set a target of increasing overall sales by over 10% from the fiscal 2025 level of 1.5671 trillion yen by fiscal 2028, but specific profit targets for individual business units were not disclosed. An IPO preparation office is set to be established in July, with management aiming for the earliest possible timing.