Discount Store Industry Feedback from discussions with major discount store operators in highly competitive central Kawasaki City

研报英文原文证据摘录

Discount Store Industry Feedback from discussions with major discount store operators in highly competitive central Kawasaki City

J P M O R G A N Asia Pacific Equity Research

23 June 2026

Discount Store Industry

Feedback from discussions with major discount store

operators in highly competitive central Kawasaki City

We have conducted onsite interviews at the Seiyu Sangenjaya, Trial Seiyu Japan Equity Research

Musashi-Shinjo, and MEGA Don Quijote Tomei-Kawasaki stores. The interviews

Retail

reaffirmed our view that discount store (DS) business formats are evolving and

deepening. Our impression is that the winners and losers in the food category, Dairo Murata AC

which we consider to be the most important DS segment, are becoming clearer. We (81-3) 6736 8620

dairo.murata@jpmorgan.com

also look forward to progress on original initiatives to strengthen non-food

Ami Terai

operations, an even more challenging task. (81-3) 6736-8660

• Overview of visits: On June 18, we conducted onsite research and interviews ami.terai@jpmorgan.com Kazuha Matsuo at stores run by major DS operators Pan Pacific International Holdings (PPIH)

(81-3) 6736-8614

and Trial Holdings that we consider to be of high industry importance in terms kazuha.matsuo@jpmorgan.com

of business format development, strengthening product and operational JPMorgan Securities Japan Co., Ltd.

management, and responding to intensifying competition. Specifically, we

visited the Seiyu Sangenjaya, Trial Seiyu Musashi-Shinjo, and MEGA Don

Quijote Tomei-Kawasaki stores. In addition to touring the stores, we held Q&A

sessions with IR teams and business/store managers. Figures 6-8 show an

overview of the main business formats operated by the two companies

(including some JPM estimates).

• Our main hosts were Mr.