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  2. IR Information : Dear shareholders and investors : Driving Force That Supports the Business Models

Business Model

Business Model (1) [24-Hour Total Operation System]

24-Hour Store Management System

We operate all stores 24 hours a day, all year round in the belief that it is the ultimate “time service” in harmony with the diversified lifestyles of customers. The 24-hour store management system we have established makes it possible to improve the convenience of customers and reduce costs by allocating and shifting usual supermarket operations to various time slots. For example, operational efficiency can be increased by concentrating the restocking and displaying of products to late-night hours. This allows our customers to shop relatively leisurely, even in times of congestion during daytime hours.

In addition, this operating form enables employees to work according to their lifestyle. Part-time employees in particular are playing an active role, as they choose to work during hours they desire, including late-night hours, depending on their role in the household.

The 24-hour store management system is creating benefits for customers, employees and our company, and differentiating Halows from its competitors.

24-Hour Distribution System

What supports our 24-hour operations is the 24-hour distribution system. This system enables the distribution of products according to the staffing plan of our stores and to provide customers with fresh products in a stable manner. In addition, we reduce procurement costs through the 24-hour operation of delivery vehicles and in-house distribution centers and costs of in-store operations through systematic distribution. In such a comprehensive manner, we are working to lower costs and increase productivity. Our in-house distribution centers enable integrated quality management of products.

24-Hour Information System

The 24-hour information system plays a role as a bridge between the 24-hour store management system and the 24-hour distribution system. The creation of a linkage between the product sales plan, order placement and receiving data, sales data and the staffing plan of each store enables us to provide better products that meet the needs of customers while increasing efficiency at the same time.


Business Model (2) [2,000 m2-sized Neighborhood Shopping Centers (NSCs)]

2,000 m2-Sized Stores

We operate stores mainly with sales floor areas of 2,000 m2 and 1,500 m2. In addition, the front of our stores is made of glass, the ceiling is as high as 5 meters and the aisles are designed to be wide.

We strive to ensure that customers can shop in comfort by providing an abundant assortment of products making full use of the extensive store area and the bright and expansive space.

In addition, the spaciousness of our stores allows us not only to provide a product line-up that meets the needs of customers, but also to display an appropriate quantity of products, which results in a reduction in the frequency of restocking and mitigation of the workload through improved inventory management.


Our efforts are being placed on the creation of Neighborhood Shopping Centers (NSCs). We aim to create shopping complexes that are closely tied to everyday life by integrating them with other business types and sectors including drug stores, 100-yen shops, laundry shops, etc., which our customers visit with similar frequency. In addition, we enable one-stop and short-time shopping for customers by creating open-mall shopping centers with a free-of-charge flat parking lot, which supports easy entrance, exit and parking, established within the site.

At the time of store development, store locations are selected to be close to an intersection of traffic arteries for the community, with a focus on future scalability. In addition, we work to reduce initial investment costs through joint store openings, which leads to the improvement of return on assets (ROA).


Business Model (3) [Supply Chain Management (SCM)]

Customer lifestyles are changing following changes in the social environment. We at Halows aim to understand and respond to the needs of customers associated with such changes. We are committed to “stably” providing “safe, reliable and low-priced” products to customers by integrally controlling “manufacture and development in production areas,” “collection and distribution” and “sales” with the Headquarters and in-house distribution centers at the core.


Fresh Foods That Focus on Safety, Reliability and Health

With “safety, reliability and health” as the keywords and as a food supermarket that contributes to the food culture of customers in local communities, Halows is working to enrich the line-up of food products that focus on safety, reliability and health while taking the diversified needs of customers into consideration.

Every Day Low Price (EDLP)

Better products at lower prices―this is the theme that distribution businesses pursue endlessly. Halows provides “low-priced products with excellent value” on a daily basis by making efforts to lower product prices without compromising quality.

Home Meal Replacement (HMR)

Halows is striving to support the everyday lives of customers, even if only a little, by pursuing the development of products that meet the HMR needs associated with changes in lifestyles, including an increase in the number of nuclear families, the declining birthrate and the greater number of working housewives.

Halows Selection

Halows Selection has been developed around the basic concepts of “proper quality,” “low prices” and “safety, reliability and health.” As a matter of course, Halows aims to procure products from the best sources both inside and outside of Japan.