Japan Electronics Retailers Yamada, Edion Announce Integration

Tokyo, June 5 (Jiji Press)–Japanese home electronics retailer Yamada Holdings Co. and rival Edion Corp. said Friday that they have reached a basic agreement to integrate their operations with combined annual sales of around 2.5 trillion yen. They plan to establish a holding company and become wholly owned subsidiaries of the new entity. Edion Chairman Masataka Kubo is set to become president of the holding company, while Yamada Holdings Chairman Noboru Yamada will become chairman. At a press conference in Tokyo, Kubo underscored his commitment to transforming the company into “a platform that surpasses conventional electronics retail stores.” He also revealed that Yamada Holdings had initiated discussions on integration in April last year. Yamada explained the reason for the integration, citing the shared view of the two companies on future challenges facing Japan. Yamada Holdings and Edion, which plan to carry out the integration Oct. 1, 2027, have a total of some 36,000 employees and over 9,900 stores including franchise outlets. Yamada Holdings, whose core subsidiary is Yamada Denki Co., is already the industry’s top player. The integration will create an even bigger group far ahead of competitors, including second-biggest Nojima Corp. The two companies hope to leverage economies of scale to reduce procurement costs and develop competitive private-brand products. They will also explore ways to mutually utilize their customer bases and expand their business fields through merger and acquisition deals. The name of the holding company has yet to be decided, while its headquarters is expected to be located in Tokyo. The two companies will continue to operate under their respective brands for the time being, and an equal number of directors will be appointed from each of the two companies to the holding company’s board. Both firms will be delisted from the Tokyo Stock Exchange’s Prime section, with the holding company expected to be listed in October 2027. The Japanese home electronics market has reached a plateau due to demographic factors, while competition has intensified with the rise of online shopping and the entry of companies from other industries. In addition, the business environment is changing drastically amid an increase in electronics products made overseas and those developed by companies other than electronics manufacturers, such as Japanese household goods maker Iris Ohyama Inc. and discount store operator Don Quijote Co. Against this background, home electronics retailers face an increasing need to reassess their strategies. END [Copyright The Jiji Press, Ltd.]