【Japan】Despite Declines in Store Count, Customer Numbers, and Sales for “4℃”, Parent Company’s Performance is Excellent. The “4℃ Debate” is Now a Thing of the Past (Weekly SPA!)

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Editor’s Note

This article examines the ongoing challenges facing 4℃, highlighting a multi-year trend of declining sales, customer numbers, and store count. The data underscores the significant pressures on the brand’s retail performance.

Declines in Stores, Customers, and Sales

In fact, 4℃’s sales have decreased significantly. Sales for the first half of fiscal year 2025 were 3.6 billion yen, a decrease of approximately 20% compared to the same period last year. Sales for the first half of fiscal year 2024 also decreased by 10%.
Customer numbers decreased by 5.5% in the first half of fiscal year 2025 and by 6.6% in the first half of fiscal year 2024. Consequently, the number of stores has also decreased, with 77 stores as of the end of August 2025, a net decrease of 3 stores in one year.

Strong Performance of the Parent Company

However, Yondoshi Holdings itself is a company with excellent performance, achieving a 67% increase in revenue and a 35% increase in operating profit for the first half of fiscal year 2025. While it may appear that the successful reversal of the male-to-female ratio for its flagship brand 4℃ is the reason, the situation is not that simple.
The reversal of the gender ratio also meant the departure of traditional customers. The reality is that 4℃’s reforms are still ongoing, and the brand alone has not yet achieved revenue growth. One can see a strong determination to increase the female ratio in order to enhance customer lifetime value.

Subsidiary for Pre-owned Luxury Watches

So, how was Yondoshi able to achieve double-digit growth in revenue and profit? There are two reasons. One is the effect of M&A. The other is the strong performance of its apparel business.
Yondoshi made Rashin, a company dealing in pre-owned luxury watches such as “Rolex”, a subsidiary in December 2024. This company operates stores under the name “GINZA RASIN” in Ginza and Shinjuku.
Rashin’s recent performance has been strong, with sales for the fiscal year ending February 2024 increasing 23% year-on-year to 18.5 billion yen and operating profit increasing 56% to 1.5 billion yen.

“Under inflation, the prices of luxury watches remain stable. Particularly in Japan, the ‘Rolex’ devotion is deeply rooted, and ‘GINZA RASIN’ boasts one of the industry’s top product lineups. Since they have sales staff capable of handling English and Chinese, they can also cater to inbound demand.”

It is likely to become a pillar supporting Yondoshi’s performance in the medium to long term.

Surprising Aspect: Apparel for the Masses

The growth of the apparel business is also remarkable. For the first half of fiscal year 2025, it achieved a 3% increase in revenue and a 12% increase in operating profit. The brand being expanded is the daily fashion brand “Palette”. Its stores are primarily located in Ito-Yokado, Aeon, and Daiei, with a particular strength in the Kansai region.
It’s hard to believe that Yondoshi, which sells jewelry and accessories, operates a shop dealing in affordable clothing for the masses. The operating company, Aju, was established in 1996 and has been steadily working on the business for nearly 30 years. Its sales exceeded 10 billion yen in 2021.
It has now become a driver of Yondoshi’s growth.

“The reason 4℃ can proceed with reforms despite decreasing customer numbers and revenue is precisely because other businesses are generating sufficient sales and profit. Around the time Palette’s sales exceeded 10 billion yen and the business began to gain traction, they started focusing on rebranding 4℃, and the results of the gender ratio reversal emerged at the timing of making Rashin a subsidiary. It gives the impression of skillfully advancing reforms.”

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⏰ Published on: December 04, 2025