What Cawachi does

Cawachi Pharmaceutical Co., Ltd. (株式会社カワチ薬品) is a publicly listed (TYO:2664) Japanese regional drugstore chain founded in 1980 and headquartered in Oyama City, Tochigi Prefecture. The company operates a mega drugstore format that combines OTC pharmaceuticals, prescription dispensing through licensed pharmacists, health foods, cosmetics, daily necessities, and food products under one roof, complemented by in-store services including dietitian consultations, skin measurement, esthetic treatments, and self-teeth whitening. Operations span 14 prefectures across the Tohoku, Kanto, and Chubu regions through three distinct store formats: the core Cawachi drugstores, the Kuramochi chain focused on western Ibaraki Prefecture, and the i-cocochi beauty specialty format concentrated in Tochigi. The company employs between 1,001 and 5,000 staff, including pharmacists, registered sellers, dietitians, and beauty advisors, and is led by President and Representative Director Shinji Kawachi.

Revenue is generated almost exclusively through physical retail sales of consumer health, beauty, and daily necessity products, supported by a loyalty point program (1 point per ¥200 purchase, redeemable at 500-point increments for ¥500 discount coupons) and a branded mobile app offering digital flyers, app-exclusive coupons, and integrated point card functionality. An additional medication handbook app allows customers to photograph and pre-submit prescriptions to reduce wait times. Distribution is entirely company-owned and domestic, with no wholesale, franchise, or digital channel outside the app. Marketing is driven primarily through the corporate website, the mobile app, point card promotions, and in-store campaigns. The company has earned Platinum Kurumin certification (2020) from Japan's Ministry of Health, Labour and Welfare for advanced work-life balance and childcare support systems.

Recent activity indicates a mature company prioritizing incremental store refreshes, deeper pharmacy service integration, and shareholder returns over aggressive expansion. Store-level initiatives in 2026 include a new dispensing pharmacy at the Ishinomaki Hebata Store in Miyagi Prefecture and the renovation/reopening of the Kanuma Store in Tochigi Prefecture, alongside articles of incorporation amendment and the introduction of interim dividends. The provided financial series shows revenue and profitability declining across the 2022–2026 window, consistent with a regionally anchored chain under pressure from broader Japanese drugstore sector consolidation, demographic headwinds in Tohoku/Kanto regional markets, and competitive intensity from larger national chains.

Name

Cawachi

Legal name

株式会社カワチ薬品

Website

https://cawachi.co.jp

Company type

Private

Founded year

1980

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Cawachi Pharmaceutical is a publicly listed Japanese regional drugstore chain (TYO:2664) operating mega drugstores, Kuramochi, and i-cocochi beauty specialty formats across 14 prefectures, serving general consumers with OTC medicines, prescription dispensing, cosmetics, and daily necessities.

Ownership category

akta.pro rank

Product category

Drugstore Retail

NAICS

Pharmacies and Drug Retailers (45611)

SIC

Retail-Drug Stores And Proprietary Stores (5912)

akta.pro primary industry

Discount Drugstores (Value-Focused Chain Pharmacies) (CRAEAHAA)

akta.pro secondary industries

Discount Drugstores with Front-End General Merchandise (Value GM) (CRAEAHAI), Variety Stores with Pharmacy / Health & Beauty Focus (CRAGAJAL)

Keywords

• Drugstore retail
• Pharmacy dispensing
• OTC medicines
• Beauty cosmetics
• Health foods

Headquarters

HQ city

Oyama

HQ country

Japan

HQ region

Asia

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Supply Chain, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Retail Sales of Health and Beauty Products: Revenue generated from retail sales of over-the-counter medicines, prescription drugs (dispensing pharmacy), cosmetics, health foods, daily necessities, and other consumer goods across physical store locations.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels3 records

Core offering

Cawachi operates a network of mega drugstores in Japan that combine OTC pharmaceuticals, prescription dispensing, cosmetics, health foods, daily necessities, and food products under one roof. The company runs three retail formats: the main Cawachi drugstores across 14 prefectures, Kuramochi drugstores concentrated in western Ibaraki, and i-cocochi beauty specialty stores in Tochigi. Each location is staffed by licensed pharmacists, registered sellers, and dietitians who provide professional health consultations alongside retail shopping.

Product overview

Cawachi is a regional drugstore/pharmacy chain operating a mega drugstore format that combines OTC pharmaceuticals, prescription dispensing, health foods, cosmetics, daily necessities, and food products. The company operates under multiple sub-brands including the main ドラッグストア カワチ, the Ibaraki-focused ドラッグストア クラ Moch, and the beauty-focused アイココチ. Key services include prescription dispensing with home care capabilities, point card loyalty programs across all brands, mobile apps with digital flyers and coupons, and specialty services such as esthetic treatments at Kuramochi, skin measurement and teeth whitening at i-cocochi. The company also offers original products across its store network.

Differentiator

Problem solved

Functional benefit

Brands

• クラ Moch: Drugstore chain operated in southwestern Ibaraki Prefecture, offering esthetic services.
• アイココチ (i-cocochi)

Products and services

• Prescription Dispensing Service (処方せん調剤) Pharmacy services with licensed pharmacists providing prescription dispensing, medication counseling, and home care services at Cawachi drugstores. Targeted at walk-in customers and patients requiring prescription fulfillment.
• Esthetic Salon Services (エステサービス) Affordable esthetic treatments at Kuramochi stores including gold course, petit esthetic, and platinum courses, plus add-on services such as collagen introduction and facial massage. Targeted at beauty-conscious local consumers.
• Skin Measurement Service (肌測定) Complimentary skin analysis at i-cocochi stores measuring skin texture, transparency, elasticity, wrinkles, melanin, and skin tone to generate personalized skincare recommendations. Targeted at beauty product shoppers.
• Self Teeth Whitening Service (歯のセルフホワイトニング) Self-administered teeth whitening service using LED irradiation technology, offered at the i-cocochi Oyama Tatsuki store in Tochigi. Targeted at retail beauty customers seeking cosmetic dental care.
• Cawachi Official Mobile App (カワチ公式アプリ) Mobile application for iOS and Android that integrates the Cawachi point card, provides digital flyers, app-exclusive coupons, campaign information, and store search functionality for retail customers.
• Medication Handbook App (お薬手帳アプリ) Application that lets users photograph and send prescriptions to Cawachi pharmacies in advance to reduce wait times, with alarm functionality to prevent forgotten medication doses. Targeted at prescription medication users.

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators2 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• Welcia Holdings: Welcia is one of Japan's largest drugstore chains, operating a similarly integrated drugstore + dispensing pharmacy + beauty format. Directly comparable to Cawachi's mega-drugstore model and a key national competitor in the Kanto/Tohoku regions where Cawachi operates.
• Cosmos Pharmaceutical: Cosmos is a discount drugstore chain focused on food + drug + dispensing pharmacy under one roof. Closely matches Cawachi's mega-drugstore format with cost-leadership positioning in regional Japan.
• Matsukiyococokara & Co. Formed from the merger of Matsumotokiyoshi and Cocokara Fine, this is one of Japan's largest drugstore chains with a strong beauty and health advisory positioning. Directly comparable to Cawachi's i-cocochi beauty banner in particular.
• Sundrug: Sundrug operates discount drugstores across Japan with a value-focused chain pharmacy model very similar to Cawachi's positioning. Comparable in store format, target customer (value-conscious health & beauty shoppers), and growth-by-expansion strategy.
• Tsuruha Holdings: Tsuruha is a top-tier Japanese drugstore chain with a national footprint and a similar dispensing pharmacy-led mega-drugstore strategy. Highly comparable on store format, customer base, and growth-via-M&A playbook.
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Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Cawachi