Kohnan Shoji President Naotaro Hikita (疋田直太郎) discussed the company's next move: conducting a tender offer for Alenza Holdings and changing the ownership relationship so that Alenza Holdings becomes an equity-method affiliate, thereby complementing the companies' regional networks and strengthening the pet business. Amid population decline and efforts to address the shift to e-commerce, the two companies are pursuing a growth strategy through cooperation.
As consolidation in the home-improvement retail industry continues, Kohnan Shoji is seeking to complement its regional network and businesses by making Alenza Holdings an equity-method affiliate through a tender offer for the company. The companies have explained that their store networks do not overlap and are expected to complement each other.
In terms of regional complementarity, Alenza Holdings has a strong store network in areas including Tohoku, Chubu, Chugoku and Shikoku, while Kohnan has a nationwide presence but relatively few stores in certain regions. The companies said they can make up for each other's gaps.
In terms of business complementarity, Kohnan Shoji intends to incorporate Alenza Holdings' expertise in the pet business and specialty stores and strengthen its own previously underdeveloped pet business. The companies plan to cooperate in areas including product development, logistics and store operations.
The companies confirmed a policy of expanding cooperation in areas including private-label products, the professional market, e-commerce and overseas operations, and pursuing a growth strategy that makes use of each other's expertise.