Pan Pacific International Holdings Corporation

On the day the liquor tax reform unified the tax rates on beer, happoshu, and third-category beer, discounted beer hit store shelves nationwide. With the new tax rate, prices were cut by about 9 yen per 350 milliliters, and manufacturers aiming to expand demand have successively renewed their flagship products. Aeon is holding a fair adapted for home consumption from the world's largest beer festival, Oktoberfest, at about 2,450 stores nationwide through the 12th, offering beer and sausages imported directly from Germany. The MEGA Don Quijote Omori Sanno store set up displays promoting the price cuts and a tasting corner, and its operator, Pan Pacific International Holdings, increased inventory above normal levels. While some say there is little movement toward lowering prices at restaurants, the gyoza specialty chain Nikujiru Gyoza no Dandadan is running a campaign through the 31st offering draft beer at 55 yen off at all its stores.

Pan Pacific International Holdings, which operates the discount chain Don Quijote, announced on the 1st that it has signed a business transfer agreement with major toy retailer Toys R Us Japan. Toys R Us Japan filed for application of the Civil Rehabilitation Act with the Tokyo District Court the same day, and according to Teikoku Databank, its total liabilities stand at approximately 13.2 billion yen. Pan Pacific International Holdings plans to take over all stores by the end of this month after obtaining court approval, inheriting the brand and main debts while continuing operations, and aims to return to profitability quickly through strengthened sales efforts. Toys R Us Japan has operated more than 150 toy stores nationwide under the Toys R Us name and others, but in recent years it had continued to post losses against the backdrop of a declining birthrate. Pan Pacific International Holdings is also involved in the toy business and judged that combining the two companies' shares would allow it to establish an overwhelming position in Japan's toy market. President Hiroshi Mori, at a press conference on the 1st, stressed that the addition of Toys R Us Japan's broad customer touchpoints will contribute to the group's sustainable growth.

Don Quijote announced on the 25th that it will cut the price of its private-brand "Jounetsu Kakaku Honkaku Lager Beer" starting October 1. The price of a 330-milliliter can will be revised from 164 yen to 153 yen. The company aims to lower the price by more than the beer tax reduction under the liquor tax revision taking effect the same day, in a bid to appeal to budget-conscious shoppers. Under the liquor tax revision, beer will drop by about 9 yen per 350 milliliters, while happoshu low-malt beer and chuhai cocktails will rise by about 7 yen.

Don Quijote announced on the 16th that it will release a fleece priced at 999 yen before tax, rolling it out sequentially at Don Quijote group stores nationwide starting in early October. With inflation driving a growing preference for thrift, the company aims to attract shoppers by offering a low-priced product. It achieved the low price by reviewing costs related to production and logistics, and the company says it will "continue to build a system that allows us to keep offering this price." Sales will begin ahead of the nationwide rollout in Hokkaido and the Tohoku region from the 21st, expanding nationwide in early October. The fleece comes in six unisex sizes, with children's sizes also available, and a lineup of 17 colors including black and beige.

Shares of Pan Pacific International Holdings surged more than 4% from the previous day, extending their winning streak to four sessions. As persistent inflation strengthens consumers' frugal mindset, the operator of Don Quijote is reliably capturing cost-of-living demand, fueling expectations for earnings growth. For the cumulative first three quarters of the fiscal year ending June 2026, consolidated results showed revenue of 1.8265 trillion yen, operating profit of 137.5 billion yen, and net profit of 93.9 billion yen, achieving increases in both revenue and profit. The full acquisition of the Olympic group was also completed on July 1. Shareholder benefits include electronic money majica points granted twice a year, with experience-based menu items added starting from the rights as of the end of December 2025.

As Japan is hit by extreme heat with maximum temperatures exceeding 40 degrees Celsius, portable coolers that require no installation and are easy to use are gaining popularity. At Bic Camera Yurakucho store, products in the 30,000 to 50,000 yen range are selling well, driven by last-minute demand for air conditioning and waiting times for installation work, leading to recommendations for customers who need immediate cooling. Usage is also increasing in rooms without air conditioning, such as kitchens and washrooms. According to Pan Pacific International Holdings, which operates Don Quijote, sales are particularly strong in Hokkaido, where air conditioner penetration is low. New entrants are appearing one after another. Following Bic Camera's launch of a private brand product last year, Nitori Holdings began handling portable coolers this year, and Sharp introduced a high-performance model with an air purification function at an estimated price in the 90,000 yen range. While energy-saving performance is inferior to typical air conditioners, Nitori Holdings expressed hope for a faster-than-expected sellout, and a Don Quijote representative pointed out the need for differentiation amid intensifying price competition.

Pan Pacific International Holdings announced it will donate a total of 40 million yen as grants to children's cafeterias nationwide, using funds raised through the group's first digital corporate bond. The support will be carried out through a project with the certified NPO National Children's Cafeteria Support Center Musubie, and will be used for creating places for children, food assistance, and multi-generational exchange. In addition, as student life support, 930 applicants through the majica app received majica money worth 35,000 yen each. The company decided in June 2025 to issue a digital bond targeting 100 million yen for UCS card members, and issued it in August of the same year. This donation materializes the youth support purpose stated at the time of issuance, serving as an example of linking digital bonds with social contribution.