It All Started with a 2-Tsubo (About 6.6㎡) Shop! A Journey of Trustworthiness and Sincerity

Rattling.

Clatter, clatter.
Every path begins with a single footstep.
Those footsteps eventually form a path, and over time, they transform into a railway called history.

As we run along this railway, we weave a story that connects the past to the future.

This is a story of a journey that leads to tomorrow.

"Company Journey" introduces the history of various companies in the Seven & i Group by portraying them as "stations", weaving the past and present of their journey.

The journey begins at the "Trustworthiness and Sincerity" station.
Your travel companion is "Mezamē", a dreamy sheep full of curiosity.　　
Let’s explore together the aspirations of those who aimed for a new era.

Outside the "Trustworthiness and Sincerity" station lies Asakusa in the 1920s. Amid the crowd of people in traditional kimono, Western-style clothing, signaling the dawn of a new era, was gradually becoming more noticeable.

Observing this change was Toshio Yoshikawa, the uncle of Masatoshi Ito, the founder of Ito-Yokado and the man who laid the foundation of Seven & i Holdings. Recognizing the coming era of Western attire, he declared, "The time for tabi socks is over, it’s now the age of Western-style socks!". With this vision, he opened a Western clothing store, "Yokado" in Asakusa, Taito-ku, Tokyo.
(*Note: The store was originally named "Meugaya" at the time of its opening.)

The business steadily expanded, and in 1940, Masatoshi Ito's brother Yuzuru opened Ito-Yokado, which was divided into two branches. Together with their mother, Yuki, Yuzuru took the lead in building up Ito-Yokado.

However, in March 1945, The store was destroyed by fire in the air raid. Although the Ito family survived unharmed, they had to restart the business from scratch.

In January 1946, on a quiet street corner in Kitasenju, a new chapter began. They rented a small space just 3 ken (about 5.46m) wide and 2 tsubo (about 6.6㎡) in front of a soba shop and reopened their Western clothing store.

It was a faint and fragile light, barely flickering, in postwar Japan’s struggle to rebuild. Yet, guided by that small beacon, Yuki and Yuzuru took their first steps, one by one, on the path of commerce.

In the postwar era, when resources were scarce and hearts were hardened, black markets flourished, and business was often conducted at exorbitant prices, Yuki’s greatest focus was on how to approach business.

"Building trust through treating customers and business partners with care and sincerity is the foundation of business."
(Words of Yuki Ito)

Instead of chasing immediate profits, she focused on engaging sincerely with each customer, handling business with integrity. It was this integrity that nurtured trust with people.

It was Yuzuru who, deeply influenced by Yuki's approach to business, added his own strong sense of purpose. He never allowed shortcuts in their work, and he taught Masatoshi this lesson:

"Even on a crooked path, walk straight."(Words of Yuzuru Ito)

This became a guiding principle, not only in business but in life itself.

From learning by the example of his mother and older brother, Masatoshi Ito formed his own beliefs about business.

"Customers don’t just come to you."
"Business partners don’t just sell to you."
"Banks don’t just lend to you."
"That’s why trust is essential in business."

He consistently valued taking the initiative to approach others and building trust step by step.

Thus, the small light that shone in a mere 2 tsubo shop gradually grew into a guiding light for many people.

While the black market is spreading, where people only pursue profit,  Ito-Yokado upheld fixed-price sales. Fixed-price sales meant offering the same price to all customers. This was the complete opposite of the free-market system of the black markets.

Furthermore, Yokado implemented the "two-piece profit" method, where they sold a dozen items but only took profit from two. They sold essential goods at the minimum profit, establishing a business policy that prioritized customers above all else.

If they had been solely focused on economic growth, this would have been an unthinkable choice. What lay at the
foundation of Ito-Yokado was the integrity in business that Yuki, Yuzuru, and Masatoshi had built over time. And it was this integrity that nurtured trust with their customers and business partners.

"Trust is not guaranteed by money or goods, but by human integrity, seriousness, and above all, by being genuine."

"Trust is not something that can be built overnight. It is something that naturally comes with consistent effort, built day by day. The repeated, steady accumulation of small actions is the foundation and the essence of business."

And so, ten years after restarting, the newly reborn Ito-Yokado, which began as a small 2 tsubo shop, steadily grew and reached the significant milestone of 100 million yen in annual sales. However, this joy was short-lived, as Yuzuru, the cornerstone of Ito-Yokado, suddenly passed away.

Masatoshi hesitated to take over the business in place of his older brother. This was because Masatoshi was his half-brother.

Despite this, his great older brother, Yuzuru, had taken him in when he had nearly lost his place in the world and even sent him to school. Yuzuru had not only blood-related siblings but also children of his own... It was not an easy decision to make.

It was Hiroyoshi Sekiguchi, the president of Umeya, a senior in the same industry, who pushed Masatoshi Ito forward in his time of struggle.

Mr. Sekiguchi was managing Umeya as its founder's adopted son-in-law. Sharing a similar position, he took great care in supporting Masatoshi, who was about 20 years younger.

At times, Mr. Sekiguchi would prioritize attending the Ito family meetings over his own family’s health condition, even when they had to undergo surgery.

Supported by the two life mentors, Yuzuru Ito and Mr. Sekiguchi, Masatoshi moved forward on his path.

With the teachings of his mother and older brother, the support of Mr. Sekiguchi, and above all, a deep sense of gratitude toward the customers who supported the business day by day, Masatoshi established Yokado Co., Ltd. in 1958. This marked the birth of what would later become Ito-Yokado.

"My principle in business is to 'never forget the spirit of gratitude' ".

The spirit of "okagesama" (thanks to you) was passed down as the foundation of the business.

In 1961, as Japan was entering its period of rapid economic growth, a new wind began to blow. The market was shifting dramatically, and the traditional forms of business were changing. To study the markets ahead of Japan, Masatoshi participated in a study tour to The United States. He was shocked by the mass consumption society he witnessed in the U.S.

"From now on, it will be the era of self-service chain stores, not department stores."

Driven by this conviction during his study tour, Masatoshi set out to expand a chain of superstores. Despite facing numerous challenges such as securing funding from banks and recruiting talent, he carefully addressed each one, steadily advancing toward becoming a large corporation.

However, no matter how large the company became, the traces of that small 2 tsubo clothing store remained.

This is clearly reflected in the "inverted pyramid" structure, where the customer is always at the top of the company.

"We want to be a trustworthy and sincere company that is trusted by our customers."
"We want to be a trustworthy and sincere company that is trusted by our business partners, shareholders, and the local community."
"We want to be a trustworthy and sincere company that is trusted by our employees."

With these thoughts in mind, the trustworthiness and sincerity toward our customers, business partners, shareholders, and the local community continues to be passed down to this day.

"The most important thing for our company has undoubtedly been our customers. Equally important, however, is our business partners. The belief in valuing both customers and business partners continues to be a tradition of our company."

And, above all, we must never forget the presence of our employees. Masatoshi spoke of his greatest joy as a business owner being when "employees are praised." The employees who interact with customers and business partners on the front lines earn trust because of their sincere approach.

Through the "Trustworthiness and Sincerity" built by each individual, the company has grown.

Who is the store for, and how should we engage with our customers? The answer began in that small 2 tsubo shop, and it still quietly, yet powerfully, lives on today.

How was the journey through the history of the Seven & i Group with Mezamē, a company of "Trustworthiness and Sincerity"?

The journey toward tomorrow is far from over.

This text has been translated using an automatic translation tool.