Kohnan nine-month sales up 8 per cent

Kohnan, a Japanese home improvement retailing chain that also has a presence in Vietnam and Cambodia, reported a slight increase in its net sales for nine months ending November 2023 despite uncertainties in the business environment. The company's financial statement for the period shows that Kohnan's net sales grew 7.8 per cent to JPY 343.846 bn Japanese yen (2.11 bn euros) during the period.

"The outlook for business conditions in the retail industry, which is mainly where the Kohnan Group develops its business, continues to be uncertain as it has been affected by rising costs, such as raw material expenses, logistics expenses, utilities expenses and personnel expenses," the company stated in its financial report. "Under these circumstances, the group is working on various measures to achieve the plan of its Medium-Term Management Plan Part III, 'We love Kohnan! Just fit for you now and always,' which was released in April 2021," they added.

This comes after the company finalised its acquisition of Oita-based Home Improvement Hirose Co. Ltd. in June 2023 through a merger with Kohnan's erstwhile subsidiary, Beavertozan Co. Ltd. The merger, which resulted in the acquisition of 100 per cent of Home Improvement Hirose and the absorption of Beavertozan, added 32 outlets to Kohnan's store network.

The company also disclosed that apart from the 32 Home Improvement Hirose outlets that were added, it also opened 22 stores and closed three in Japan during the period, bringing its store count in the country to 574. Meanwhile, they added two stores in Vietnam as of end September 2023, bringing their store count in the country to 13, the company said. Kohnan also has three stores in Cambodia.

Kohnan, which is headquartered in Osaka, operates home improvement stores mainly in Japan's Kinki region under the following formats: Home Center Kohnan (community-based daily essentials retailer), Kohnan Pro (targeting professionals), Camp Depot (specialist store for camping goods), and Ken Depot (membership wholesale business for construction materials, catering to the Tokyo metropolitan area).  Its subsidiary in Vietnam started operations in 2016, while its Cambodia unit opened its first store in 2022.

Jennee Grace U Rubrico