The retail market transformed through the union of AEON Co., Ltd., Tsuruha Holdings and Welcia Holdings
Japan’s retail landscape experienced a significant reform through the establishment of the AEON capital alliance. The final agreement concerning the AEON capital alliance was signed by AEON Co. Ltd., Tsuruha Holdings, and Welcia Holdings on April 11th, 2025. The merger marks Japan’s biggest drugstore industry combination through this official action.
The formation of AEON capital alliance signifies what?
This collaboration represents more than just business combination. It’s a nationwide strategy to:
- Unify over 5,600 stores
- Serve 100 million+ customers
- Reach ¥3 trillion in sales
The three companies plan to unite their approaches for logistics management as well as purchasing operations together with pharmacy service operations. Apart from delivering services to ASEAN markets AEON plans to leverage their existing international business platforms. The three businesses strive to develop a unified chain structure throughout the AEON capital alliance by concentrating on well-being and everyday necessities in addition to health services.
Key facts about the AEON capital alliance
- AEON will control 50.9% of Tsuruha.
- The 100% subsidiary of Tsuruha includes Welcia.
- Together they control 25% of the drugstore market sales in Japan.
- A complete stock exchange along with a complete buyout of shares should take place by early 2026.
Through successful collaboration between partners the AEON capital alliance seeks to achieve ¥50 billion in savings during the next 3 years.
Why now?
Rural areas in Japan are experiencing increasing demand for retail locations which offer combination services between fresh food and medicine and ordinary household products and healthcare resources.
- Fresh food
- Medicine
- Household goods
- Health services
The new alliance from AEON fills the existing industry demand.
The expansion strategy of these group companies will be forceful in health system markets that have not yet fully matured. The current AEON store locations provide Tsuruha as well as Welcia with market entry support in these areas.
The AEON capital alliance will carry out what future development plans do they have in their roadmap?
- New private brands launching soon
- Integrated pharmacy services
- Unified logistics centers
- Shared data from 50+ million loyalty users
- Faster rollout of digital health services
The AEON capital alliance established a blueprint that aims to achieve its growth goals until 2032.
- 7% operating margin
- ¥2.1 trillion in profit
- 5,000+ pharmacy-equipped stores
How will customers benefit?
- Lower prices from shared sourcing
- Better stocked stores
- More in-store pharmacies
- Simple payment and loyalty systems
- Consistent product quality across Japan
Who leads the alliance?
- As the leader within the group AEON maintains its position throughout the organization.
- Tsuruha remains the core company
- The pharmacy and logistical expertise of Welcia brings additional strengths to the organization.
- AEON capital alliance provides more than just a massive scale of operation. The approach effectively constructs an innovative health-oriented retail model for upcoming times.