TOKYO - Japan's largest consumer electronics retailer, Yamada Holdings Co., and Edion Corp., another key company in the industry, said Friday they had agreed to merge under a holding company to be established in October 2027.
Their combined sales would total around 2.5 trillion yen ($15.6 billion), more than double the 982.80 billion yen posted by No. 2 competitor Nojima Corp. in the previous fiscal year.
The move comes amid intensifying competition with industry rivals and e-commerce platforms as Japan's population shrinks. The companies hope that the merger will strengthen their product development capabilities and accelerate efficiency as they endeavor to release products under a private brand.
Noboru Yamada, chairman of Yamada Holdings, is set to become chairman of the holding company, while Masataka Kubo, chairman of Hiroshima-based Edion, will assume the role of president.
"The industrial structure is undergoing major changes, and scale is a significant advantage," Yamada said at a press conference.
Kubo said they will seek to cut costs through joint procurement, as "it is important to provide good products at lower prices."
The holding company, whose name has yet to be decided, will be headquartered in Tokyo. Existing store brands, including Yamada Denki and Edion, will remain for the time being.
"Together, we can accomplish transformative changes that neither company could achieve on its own," the two companies said in a release.
Combined, the group will operate around 10,000 stores, including franchises, and employ approximately 36,000 people.
