Can Welcia Evolve from Being a "Store that Sells Medicine" to a "Regional Health Infrastructure"?

When Viewed from Japan, Welcia's Expansion Is More Than Just Retail News

An article about Welcia on a German financial news site presents the company as a "drugstore chain continuing to grow in Japan's pharmaceutical retail market" from an investor's perspective. It expands its store network, incorporates dispensing pharmacies, and captures the stable demand for pharmaceuticals and daily necessities. In Japan, where aging is advancing, spending related to health, care, and daily consumption remains robust, making it an attractive investment target.

However, when this story is re-examined from a Japanese perspective, a slightly different picture emerges. Welcia's growth is not merely a story of "more drugstores." It encapsulates issues faced by Japanese local communities, such as healthcare, caregiving, shopping difficulties, living costs, the point economy, and retail restructuring, all within a single store.

For us, drugstores are no longer just places to buy medicine. Cold medicine, prescription drugs, detergents, cosmetics, food, beverages, caregiving supplies, baby products, supplements, and daily necessities. For some, they are closer than supermarkets, cheaper than convenience stores, and more accessible than pharmacies. Welcia's expansion indicates how significant this business model, which fills the "gaps in daily life," has become in Japan.

Particularly important is the company's concept of being the "No.1 health station in the region." This is not just a catchphrase. It reflects the idea of becoming a hub that not only sells products and medicines but also understands the concerns and challenges of local residents, supporting them in health, prevention, treatment, and care.

In Japan, there are countless small health issues in daily life, such as minor health concerns that don't warrant a hospital visit, questions about drug interactions, how to choose caregiving supplies, and consultations about nutritional supplements. This is precisely the area Welcia is targeting. It is less intimidating than medical institutions, more specialized than convenience stores, and closer to health consultations than supermarkets. Such intermediary places will become increasingly necessary in future Japanese society.

The Growing Value of "Nearby Pharmacies" in an Aging Society

Japan's aging population is a significant tailwind for the drugstore industry. Of course, one should be cautious about simply describing aging as a business opportunity. There are serious issues such as medical costs, caregiving burdens, elderly living alone, lack of transportation, and weakening community ties.

However, from the perspective of residents, having a pharmacy or drugstore nearby where they can seek advice provides great reassurance. They can go to pick up prescription drugs, choose over-the-counter medicines, quickly buy caregiving supplies, and purchase food and daily necessities all at once. If necessary, they can consult with pharmacists or registered sellers.

Welcia's strength in stores with integrated dispensing creates this sense of reassurance. Customers who come with prescriptions can buy daily necessities and food while waiting. Conversely, customers who come for regular shopping can consult about medicine and health. Having both dispensing and retail in the same store increases reasons for visiting and extends contact with customers.

This is a value that is difficult to replace with online sales alone. Of course, online purchasing of pharmaceuticals and daily necessities will continue to expand. However, for the elderly and those with chronic illnesses, being able to "ask someone nearby" is significant. There are many situations where people want to confirm things face-to-face, such as drug explanations, symptom consultations, the feel of caregiving supplies, and choosing health foods.

Furthermore, in rural and suburban areas, the role as shopping support becomes more significant. Welcia is also deploying mobile sales vehicles called "Uetan-go," which not only handle food, daily necessities, cosmetics, and general pharmaceuticals but also combine online health consultations and payment services. Such initiatives are not merely sales expansion strategies but are close to being part of the community's living infrastructure.

Thus, viewing Welcia's growth merely as "an increase in the number of stores" would be misleading. In the context of Japanese society, the issue is how much the drugstore can take on the functions of healthcare, caregiving, shopping, and community interaction.

Integration with Tsuruha Marks a New Stage for the Drugstore Industry

The most significant change surrounding Welcia is its business integration with Tsuruha Holdings. On December 1, 2025, the management integration of Tsuruha Holdings and Welcia Holdings was realized. This resulted in the birth of a massive drugstore alliance with 5,659 domestic stores, sales of approximately 2.3124 trillion yen, and 116,343 employees.

In Japan's drugstore industry, restructuring has been ongoing for a long time. The integration of Matsumotokiyoshi and Cocokara Fine, the expansion of Sugi Pharmacy, the strengthening of food at Cosmos Pharmaceutical, and the integration of Tsuruha and Welcia. Industry companies are competing for consumers' wallets and time by combining not only pharmaceuticals but also food, cosmetics, daily necessities, dispensing, points, apps, and private brands.

The integration of Welcia and Tsuruha further intensifies this competition. A larger procurement scale will be advantageous in product sourcing. If logistics can be integrated, inventory management and delivery efficiency can also be improved. If customer IDs, apps, and point bases are linked, it will be possible to offer promotions and health proposals tailored to each consumer.

On the other hand, the larger the scale, the more challenges arise. How to organize brands? Will stores in different regions compete with each other? Will system integration proceed smoothly? Will the burden on employees increase? Can the expertise as a dispensing pharmacy be maintained? While growth generates efficiency, it also widens the gap with the field.

In Japanese retail, what matters to consumers is not the integration itself but how "the usual store" changes after integration. The product lineup changes. The point system changes. Business hours change. Closures and renovations occur. Staff arrangements change. Such small changes quickly become topics on social media.

For investors, the integration of Welcia and Tsuruha is a story of synergy, while for consumers, it is a matter of "what will happen to the local store." This difference in perspective should not be overlooked.

Expectations and Concerns Are Simultaneously Visible on Social Media

A search of public social media reveals three main reactions to Welcia.

The first is an appreciation for everyday convenience. Posts with a sense of daily life, such as "buying a drink on the way home," "it's helpful to have one nearby," and "I can shop while getting my prescription filled," can be seen. This indicates that Welcia is already part of the daily routine rather than a special destination.

The second is reactions to products and campaigns. On social media, lottery sales, point initiatives, cosmetics, food, and alcoholic beverages at Welcia sometimes become topics. Despite being a drugstore, there are many instances where attention is drawn to products other than medicine. This is evidence that Welcia is perceived not as a "pharmacy" but as a "comprehensive lifestyle store."

The third is concerns about integration, closures, and store restructuring. Related to the integration with Tsuruha, there are reactions of welcome and surprise about becoming "one of Japan's largest drugstore chains," while in some regions, voices associate closures and store reorganizations with the integration. Although the reasons for individual store closures cannot be determined solely from social media, residents view corporate restructuring from the perspective of "whether the store near me will remain."

Additionally, the feeling that "there are too many drugstores" is often seen on social media. In areas where multiple similar drugstores line up along main roads or in residential areas, a sense of convenience coexists with discomfort about over-expansion. While Welcia, Tsuruha, Sugi Pharmacy, Matsukiyo Cocokara, and Cosmos compete, consumers have more choices, but some are concerned about the impact on small local pharmacies and shops.

The reactions on social media reveal that Welcia is not about "liking or disliking" but has become so ingrained in daily life that it easily evokes both expectations and dissatisfaction.

Japanese Consumers Value "Everyday Usability" Over Scale

From an investor's perspective, sales scale, number of stores, synergy effects, dispensing integration rate, logistics efficiency, and customer data utilization are noteworthy. However, what Japanese consumers evaluate in their daily shopping is much more specific.

Is the desired medicine available? Is the wait time for prescriptions not long? Is it easy to consult with staff? Are foods cheap? Is it easy to use points? Is the app not cumbersome? Is there parking? Is the store easy to navigate? Is it open at night? Is it easy for elderly family members to visit?

These detailed experiences create Welcia's brand value. Even if headquarters efficiency increases through large-scale integration, consumers will leave if the store experience deteriorates. Conversely, if integration improves product lineup, pricing, points, dispensing, and consultation systems, the value to consumers will be significant.

Especially in Japan, drugstores partially substitute the roles of food supermarkets and convenience stores. Some people use them as places to buy food cheaply, while others buy cosmetics and daily necessities in bulk. Some use them as prescription pharmacies. Some municipalities expect them to monitor the elderly and support shopping.

This multifunctionality is both Welcia's strength and its challenge. A store that handles everything is convenient, but there is also the risk of everything becoming mediocre. Maintaining high standards in pharmaceutical expertise, food price competition, cosmetic proposal power, caregiving consultation functions, and community support requires personnel, education, systems, and field flexibility.

Labor Shortage and Maintaining Expertise Are Major Challenges

An unavoidable challenge in Welcia's growth strategy is the labor shortage. Operating a drugstore involves many tasks, such as cashiering, stocking, ordering, cleaning, customer service, promotions, inventory management, and dispensing reception. Furthermore, in stores with integrated dispensing, securing pharmacists and specialized staff is essential.

As the labor force population decreases across Japan, the more stores are added, the harder it becomes to secure personnel. In stores with long business hours, shift management also becomes a significant burden. Late-night or 24-hour operations are convenient for users but not easy for workers.

Moreover, Welcia's goal of becoming a "health station" cannot be achieved by merely displaying products. Pharmacists, registered sellers, dietitians, beauty advisors, and staff knowledgeable about caregiving are needed. If a store claims to be a place for consultation, it also requires the time and personnel to handle consultations.

Here lies Welcia's greatest dilemma. While efficiency is necessary for growth, health consultations and community support require time that may seem inefficient. While increasing sales requires store turnover rates, building trust requires careful attention to each individual.

For Welcia to be truly appreciated in the future, maintaining on-site expertise and workability, not just expanding in scale, will be crucial. Consumers remember the staff's response more than the store's sign.

"Shopping Support" in Rural Areas, "Time-Saving and Convenience" in Urban Areas

When viewing Welcia from a Japanese perspective, regional differences are also important.

In rural and suburban areas, drugstores hold significance as shopping infrastructure. Having a store nearby where food, daily necessities, and pharmaceuticals can be purchased together is significant for the elderly who cannot drive and families with children. The initiative of mobile sales vehicles can also be seen as addressing these regional issues.

On the other hand, in urban areas, drugstores become places for time-saving. Located near stations, shopping streets, and residential areas, they allow for the purchase of medicine, cosmetics, beverages, and daily necessities after work. Prescription drugs can also be picked up. They offer a wider product range than convenience stores and take less time than supermarkets. For busy urban dwellers, drugstores are efficient supply points.

For Welcia to grow further, a uniform store model nationwide will not suffice. In rural areas with advancing aging, caregiving, mobile sales, health consultations, and food strengthening become important. In urban areas, reducing dispensing wait times, app integration, self-checkout, cosmetic proposals, and nighttime operations are required. In residential areas, a product lineup that supports family life is necessary.

Despite being a large chain, how well it can respond to regional differences will determine Welcia's next growth phase.

Can Drugstores Become the "Gateway to Healthcare"?

In Japan, congestion in medical institutions and rising medical costs have been long-standing issues. If appropriate consultations and self-care can be provided at the stage of mild health issues or health concerns, it benefits both residents and the healthcare system.

Drugstores can serve as that gateway. Pharmacists and registered sellers can advise on choosing over-the-counter medicines and encourage medical visits when necessary. Dietitians can provide dietary consultations. They can guide the selection of caregiving supplies. Through health measurements and events, they can raise awareness of prevention.

Welcia's health station concept aligns precisely with this direction. The idea of supporting pre-illness, prevention, treatment, and care as a single flow suits Japan's aging society.

However, caution is also necessary here. Drugstores are not medical institutions. The line between what can and cannot be done is important. If it becomes excessive sales guidance, trust will be lost. Expanding health consultations without sufficient expertise carries risks. Therefore, the roles of professionals such as pharmacists, collaboration with local medical institutions, and the accuracy of information provision are crucial.

For Welcia to become the "gateway to healthcare," it needs not only the power to sell but also the power to discern. What can be sold, what can be consulted on, and what should be referred to medical institutions. That judgment forms the foundation of trust.

The Point Economy Also Supports Welcia's Strength

When discussing Japanese drugstores, the point economy cannot be ignored. On social media, Welcia is often discussed in the context of points and campaigns. For consumers who want to buy daily necessities and food cheaply, point redemption is a reason to visit.

As high prices continue, consumers are becoming sensitive to differences of a few yen or tens of yen. Drugstores are chosen while being compared to supermarkets, convenience stores, and e-commerce. Earning points, using them, and benefiting from campaigns. This experience creates customer habits beyond mere discounts.

For Welcia, point initiatives are a weapon to increase visit frequency. Dispensing and health consultations have limited frequency, but food and daily necessities are purchased regularly. When the appeal of points is added, customers naturally choose the store.

However, changes to the point system can easily lead to backlash. If usage becomes complicated, redemption rates decrease, or target products change, these changes are quickly shared on social media. How points and apps are organized after integration will be a part of high consumer interest.

From an Investor's Perspective, a "Defensive Growth Stock"; From a Consumer's Perspective, "Local Infrastructure"

The original article focused on the stability of Welcia as an investment target. Pharmaceuticals, dispensing, daily necessities, and caregiving supplies are less susceptible to economic fluctuations. In Japan, where aging is advancing, demand related to health tends to remain long-term. This is certainly an attractive element for investors.

However, from the perspective of Japanese residents, Welcia is not a stock market listing but a local store. Does it have the desired products? Is it cheap? Is it convenient? Can you consult with them? Is it clean? Are the staff friendly? The accumulation of such experiences forms the true foundation of corporate value.

These two