Don Quijote, Japan's popular discount variety store chain, is acquiring a major supermarket chain with 64 years of history. The move reflects a broader consolidation trend in the retail industry as small and mid-sized operators struggle with high inflation and labor shortages.
Pan Pacific International Holdings (PPIH), the operator of Don Quijote, will acquire supermarket chain Olympic Group for approximately 25 billion yen (about 236.5 billion won, or roughly $1.6 billion), the Nihon Keizai Shimbun reported Wednesday. PPIH plans to make Olympic a wholly owned subsidiary through a share swap by July.
After the acquisition, PPIH is expected to convert Olympic's approximately 60 stores into "Robin Hood," its new food-focused retail brand. Robin Hood combines Don Quijote's strengths in household goods and cosmetics with prepared dishes, vegetables, meat, fish and other fresh food items cooked and sold on-site. PPIH previously declared plans to expand the Robin Hood chain to 200 to 300 stores by June 2035. With Olympic operating approximately 120 stores primarily in the Tokyo metropolitan area, the acquisition is expected to accelerate those plans. Some larger stores will also be converted into Mega Don Quijote outlets, the company said.
Rising prices, labor shortages and the growth of online shopping have eroded profitability for Japanese retailers. Olympic Group's annual revenue in 2024 was 98.6 billion yen (approximately 932.9 billion won), a roughly 40% decline from 158.5 billion yen in the fiscal year ending February 2001, when the company was in its growth phase. PPIH, by contrast, has achieved rapid growth year after year, led by Don Quijote's ultra-low-price, high-variety strategy. PPIH posted revenue of 2.2467 trillion yen for the fiscal year ending June 2025 (July 2024 to June 2025), up 7.2% year-on-year.
PPIH has a track record of acquiring struggling supermarket chains, including Nagasakiya in 2007 and UNY in 2019. Last year, Trial Holdings, a major discount retailer, acquired supermarket chain Seiyu. Bluezone Holdings (formerly Yaoko), a large supermarket chain, also made successive acquisitions of industry peers Bunkado and Delight Holdings.
"Japan has many mid-sized regional supermarkets, each with its own distinct local character," the Nikkei reported. "Until now, market concentration in the supermarket industry had not progressed significantly, but as the industry landscape shifts, mergers and acquisitions are becoming increasingly active."