Japan Retail Sector "Searching for value: Sector reorganisation continues"

Research evidence excerpt

Japan Retail Sector "Searching for value: Sector reorganisation continues"

Global Research

23 June 2026ab

Japan Retail Sector Equities

JapanSearching for value: Sector reorganisation

continues Retail

Takahiro Kazahaya

Analyst

takahiro.kazahaya@ubs.com

Summary +81-3-5208 6226

Reorganisation continues in Japan’s retail sector. In this report, we summarise EV/ Kazuki Oike

EBITDA multiples for individual stocks in the retail sector and discuss implications for the Associate Analyst

sector. kazuki.oike@ubs.com

+81-3-5208 6964

Sector reorganisation trends and their importance in the equity market

Looking back at major reorganisations in Japan’s retail sector, in 2025, Bain Capital

acquired the York Holdings business from Seven & i Holdings (3382), Trial Holdings

(141A, non-covered) acquired Seiyu, and Tsuruha Holdings (3391) and Welcia Holdings

agreed to a management integration. In 2026, Pan Pacific International Holdings (7532)

announced the acquisition of Olympic Group (8289, non-covered), scheduled to be

completed on 1 July, Yamada Holdings (9831) and Edion (2730, non-covered) signed a

basic agreement toward a management integration, and Marunouchi Capital

announced a management buyout (MBO) of Satudora Holdings (3544, non-covered). In

the context of equity investment in the retail sector, investors tend to focus on PER when

assessing whether valuations are cheap or expensive, but in M&A and MBO

transactions, EV/EBITDA based on acquisition value tends to carry greater importance.

We therefore believe it is important to consider EV/EBITDA in addition to PER when

valuing individual retail stocks.

EV/EBITDA rankings for individual stocks

Figures 1 and 2 summarise EV/EBITDA based on the latest results of 126 major retail