Worth reading
56In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
—
Displayed only when the document provides numerical figures.Wording
Conditional
How definitive the wording is.Items stated in the management plan
Partially revisedROE0.0pt
基準 8Target8％
ROIC0.0pt
基準 5.5Target5.5％
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).
What happened to the previous planROE of at least 8%, PBR above 1x, and ROIC of at least 5.5% → Fiscal year ending March 2026 results: ROE 9.2%, PBR 1.06x, and ROIC 5.6%+25,225.0%Calculated from the two disclosed figures
Investment amount by sectorField Store Investment / Amount Not disclosed, Field Strengthen the manufacturing base, including establishing new factories / Amount Not disclosed, Field Store Renovations / Amount Not disclosed, Field M&A / Amount Not disclosed
Statements about the use of capital
Payout ratio / DOE policyDividend payout ratio of approximately 30%; DOE (dividend on equity) floor of 2%. Applicable period: Not disclosed. Progressive dividends will be paid.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalWACC (company estimate): 4.0%–5.0%; cost of equity (company calculation based on CAPM): 6.5%–7.5%.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share pricePBR for the fiscal year ending March 2026 was 1.06x, exceeding the target of 1x. Although PBR exceeded 1x as the share price rose, it remained below the average PBR of 1.18x and PER of 18.4x for food retailers listed on the Prime Market, and the company recognizes substantial room for improvement.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Promote destination stores and expand store openings in the Kanto region
02Strengthen the manufacturing base, including establishing new factories
03Strengthen individual stores by combining store formats with priority categories
04Strengthen the food business through group collaboration and actively introduce group private-label products
05Mutual supply of private-label products with コーナン商事
06Expand openings of PRO specialty stores
07Strengthen the grooming and dog-training divisions
08Expand openings of pet specialty stores
09Strengthen the school business
10Expand contracts for elementary-school swimming classes
11Improve logistics efficiency and expand transportation methods
12Expand external sales of materials, consumables, and other products
13Strengthen recruitment of new members in connection with SMバロー’s expansion into the Kanto region and store renovations
14Continue incentives for new members
15Strengthen management of renovation investments, mainly for unprofitable stores, to reduce impairment losses
16Make effective use of group assets by reducing inventories and converting closed SM stores into manufacturing plants
17Flexibly utilize interest-bearing debt while maintaining financial soundness, stability, and external credit ratings
18Communicate a growth strategy centered on expanding SMバロー’s presence in the Kanto region and establishing a dominant position in the Kansai region
19Provide investors with opportunities to visit new stores, manufacturing plants, and other sites, promoting their understanding of operations
20Continually communicate information on existing-store trends, the effects of new store openings, profitability, and other matters
21Expand opportunities for dialogue with investors
Plan assumptionsWACC (company estimate): 4.0%–5.0%; cost of equity (company calculation based on CAPM): 6.5%–7.5%. Business assumptions, including foreign exchange rates, raw material prices, and market growth rates: Not disclosed.
Reason for revision or withdrawal
The company reassessed its current situation and recognized the issues, and therefore updated the content of its initiatives for future improvement. New quantitative targets are scheduled to be set under the next medium-term management plan from the fiscal year ending March 2028 onward.
| Item | Details |
|---|---|
| Plan name | Current medium-term management plan |
| Plan period | Current medium-term management plan: final fiscal year is the fiscal year ending March 2027 (start year: Not disclosed). Next medium-term management plan: from the fiscal year ending March 2028; quantitative targets through the fiscal year ending March 2030. |
| Progress against the plan | Partially revised |
| ROE target | 8% or higher → 8% or higher（0%） |
| ROIC target | At least 5.5% → At least 5.5%（0%） |
| Payout ratio / DOE policy | Dividend payout ratio of approximately 30%; DOE (dividend on equity) floor of 2%. Applicable period: Not disclosed. Progressive dividends will be paid. |
| Cost of capital | WACC (company estimate): 4.0%–5.0%; cost of equity (company calculation based on CAPM): 6.5%–7.5%. |
| Self-assessment of PBR and share price | PBR for the fiscal year ending March 2026 was 1.06x, exceeding the target of 1x. Although PBR exceeded 1x as the share price rose, it remained below the average PBR of 1.18x and PER of 18.4x for food retailers listed on the Prime Market, and the company recognizes substantial room for improvement. |
| Investment amount by sector | Field Store Investment / Amount Not disclosed, Field Strengthen the manufacturing base, including establishing new factories / Amount Not disclosed, Field Store Renovations / Amount Not disclosed, Field M&A / Amount Not disclosed |
| Plan assumptions | WACC (company estimate): 4.0%–5.0%; cost of equity (company calculation based on CAPM): 6.5%–7.5%. Business assumptions, including foreign exchange rates, raw material prices, and market growth rates: Not disclosed. |
| Key initiatives | Promote destination stores and expand store openings in the Kanto region, Strengthen the manufacturing base, including establishing new factories, Strengthen individual stores by combining store formats with priority categories, Strengthen the food business through group collaboration and actively introduce group private-label products, Mutual supply of private-label products with コーナン商事, Expand openings of PRO specialty stores, Strengthen the grooming and dog-training divisions, Expand openings of pet specialty stores, Strengthen the school business, Expand contracts for elementary-school swimming classes, Improve logistics efficiency and expand transportation methods, Expand external sales of materials, consumables, and other products, Strengthen recruitment of new members in connection with SMバロー’s expansion into the Kanto region and store renovations, Continue incentives for new members, Strengthen management of renovation investments, mainly for unprofitable stores, to reduce impairment losses, Make effective use of group assets by reducing inventories and converting closed SM stores into manufacturing plants, Flexibly utilize interest-bearing debt while maintaining financial soundness, stability, and external credit ratings, Communicate a growth strategy centered on expanding SMバロー’s presence in the Kanto region and establishing a dominant position in the Kansai region, Provide investors with opportunities to visit new stores, manufacturing plants, and other sites, promoting their understanding of operations, Continually communicate information on existing-store trends, the effects of new store openings, profitability, and other matters, Expand opportunities for dialogue with investors |
| Results under the previous plan | ROE of at least 8%, PBR above 1x, and ROIC of at least 5.5% → Fiscal year ending March 2026 results: ROE 9.2%, PBR 1.06x, and ROIC 5.6% |
| Reason for revision or withdrawal | The company reassessed its current situation and recognized the issues, and therefore updated the content of its initiatives for future improvement. New quantitative targets are scheduled to be set under the next medium-term management plan from the fiscal year ending March 2028 onward. |
| Publication date | 13 May 2026 |
Items this document does not state (11)
Sales TargetOperating profit targetOperating profit margin targetNet income targetTreasury share acquisition policyTotal investment planSegment targetNon-financial targetsSize of the Target MarketRisks identifiedDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.To reassess the current situation and recognize the issues, and to update the initiatives for future improvement. New quantitative targets are scheduled to be set under the next medium-term management plan from the fiscal year ending March 2028 onward.
How to read this page
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.