About Us

JR East to Acquire Shares of Kinokuniya Group

East Japan Railway Company
Kinokuniya Co., Ltd.
January 26, 2010

East Japan Railway Company (President Satoshi Seino, head office Shibuya–ku, Tokyo, below referred to as JR East) and group companies of Kinokuniya Co., Ltd. (President Shin Masui, head office Minato–ku, Tokyo, below referred to as the Kinokuniya) agreed today that JR East would acquire shares of the Kinokuniya group.


Operating status of companies concerned

The JR East Group aims to achieve sustained growth as a trusted group creating lifestyle services, and with proactive development of its lifestyle services business in particular, plans to boost business income from non–transportation businesses to 40% of all business income by FY2017.
Specifically, JR East is developing "ekinaka" (commercial areas within the ticketed parts of stations) and station buildings, etc. mainly in the Tokyo metropolitan area and at the same time proceeding with local area business development that will vitalize outlying areas. These activities innovate JR East’s business sectors and models and further enhance value for our customers and within the Group.
Meanwhile, the Kinokuniya group, established in 1910, opened Japan’s first supermarket in Aoyama, Tokyo in 1953. Since then, as a food specialty store, it has continued to benefit customers in their food needs by strengthening networks of producers, ensuring thorough product quality, developing products that anticipate the needs of the times and providing the best service.


Purpose of acquisition

This share acquisition will leverage the strengths of each party, namely the Kinokuniya group’s strength mainly in distribution including producer networks and purchasing power, and JR East’s strength in station and station–area development know–how, since its stations are used by 16.8 million people a day. Together as a group, these businesses will grow further by providing even greater customer value and strengthening and refining existing business areas.
In addition, by combining JR East’s railway network and Kinokuniya group’s distribution system integrating trade goods purchasing, product development and sales, this new organization will make it possible to develop new businesses that contribute to area vitalization.


Share acquisition scheme

First, companies in the Kinokuniya group will merge into a single entity under their current ownership, then JR East will acquire all the issued shares of the newly merged company.



Planned for April 1, 2010.
(Reference) Overview of Companies Concerned
Trade name East Japan Railway Company
(JR East)
Kinokuniya Co., Ltd. Kinokuniya Co., Ltd. Kinokuniya Food Center Co., Ltd.
Representative Satoshi Seino Shin Masui Shin Masui Shin Masui
Location 2–2–2 Yoyogi, Shibuya–ku, Tokyo 3–11–7 Kita–Aoyama, Minato–ku, Tokyo 7–18–1 Todoroki, Setagaya–ku, Tokyo 7–1–34 Shimorenjaku, Mitaka–shi, Tokyo
Established April 1987 January 1948 August 1975 August 1973
Major business areas Railroad services, advertising, commercial operations within facilities, travel, real estate leasing, credit card services, etc. Fresh and preserved food, grains, alcoholic beverage, etc. sales, etc.

13 stores
Fresh and preserved food, grains, alcoholic beverage, etc. sales, etc. Pickled foods, side dishes, tofu, soy milk drinks, etc. manufacturing and sales

1 store, 1 factory
Bread baking, sales, etc., meat processing and sales, side dishes manufacturing, sales, etc.

3 stores,
1 factory
End of fiscal year March 31 March 31 March 31 March 31
Employees 61,040
(April 1, 2009)
(March 31, 2009)
(March 31, 2009)
(March 31, 2009)
Capital 200,000 million yen 100 million yen 10 million yen 29,4 million yen
Business income in most recent business year 2,696,999 million yen
(year ended March 2009)
13,812 million yen
(year ended March 2009)
2,565 million yen
(year ended March 2009)
4,276 million yen
(year ended March 2009)
Business income shown is on consolidated basis for East Japan Railway Company (JR East) and non–consolidated basis for the Kinokuniya group.