Chapter 2: How Are Home Improvement Stores and Drugstores Similar, and How Do They Differ?

Home improvement stores and drugstores are both lifestyle-oriented retail formats that directly support consumers’ everyday concerns and needs. In that sense, both function as part of the social infrastructure of daily life. According to the Japan Association of Chain Drug Stores, the drugstore industry in Japan reached approximately ¥9.2 trillion in sales in fiscal 2023. Meanwhile, the Japan DIY Homecenter Association reports that home improvement stores have expanded to more than 5,000 locations nationwide. At the company level, Cainz operates over 250 stores with annual sales exceeding ¥500 billion, while DCM Holdings also maintains a large nationwide network. These facts illustrate that both sectors are firmly established as essential components of everyday life in Japan.

However, it would be misleading to treat them as a single category simply because they are both “lifestyle retail.” The motivations for visiting, purchase frequency, product characteristics, and the role expected of stores differ significantly between the two. As a result, OMO design cannot be applied uniformly; it must be tailored to the specific nature of each format.

Similarities: Positioned as Everyday “Infrastructure”

The most important similarity between home improvement stores and drugstores is their role as everyday infrastructure. Drugstores, by definition, handle pharmaceuticals, cosmetics, daily necessities, household goods, and food. This broad assortment positions them not merely as places to buy medicine, but as convenient, everyday shopping destinations.

Home improvement stores, on the other hand, play a parallel role in supporting housing and living environments. According to the Japan DIY Homecenter Association, the sector developed around DIY-related products and has evolved alongside changes in lifestyle values, including growing interest in more creative and self-directed living. These stores serve as hubs for home maintenance, repairs, disaster preparedness, and gardening.

In this sense, both formats are places consumers turn to when they face problems or want to improve their daily lives. Drugstores support hygiene and health, while home improvement stores support living spaces and physical environments. Any discussion of OMO design must begin with this shared role.

Difference 1: Purchase Motivation and Visit Frequency

The most significant difference lies in purchase motivation and visit frequency. Drugstores are characterized by frequent visits, driven by the need to replenish daily essentials such as toiletries, food, and health products. Their role extends beyond addressing illness to maintaining everyday life.

In contrast, home improvement stores tend to attract more purpose-driven visits. Customers often come with specific goals—DIY projects, repairs, storage solutions, or disaster preparedness. Purchases are less about routine replenishment and more about solving defined problems.

This distinction directly impacts OMO design. In drugstores, it is critical to support repeated behaviors such as checking prices, confirming inventory, using coupons, and earning or redeeming points. In home improvement stores, the focus shifts to supporting each visit as a meaningful event—helping customers research products, confirm availability, and receive expert advice when needed.

In other words, drugstores require “frequency-driven OMO,” while home improvement stores require “task-oriented OMO.”

Difference 2: Product Types and Price Ranges

Another major difference lies in product characteristics and price ranges. Drugstores primarily offer small, fast-moving consumer goods such as toiletries, cosmetics, and food. As noted in reports from MatsukiyoCocokara & Co., their business spans beauty, health, and daily necessities, with a strong emphasis on repeat purchases. Purchasing decisions are typically quick and routine.

Home improvement stores, by contrast, handle a wide range of products including tools, building materials, storage solutions, furniture, and gardening supplies. Many of these require careful consideration of size, specifications, and compatibility. Some items are large or require multiple components to complete a project, and price ranges can vary widely.

As a result, the type of information required online differs significantly. In drugstores, the key is enabling quick confirmation for immediate purchase. In home improvement stores, the priority is ensuring accuracy—helping customers choose the right product for their specific needs.

This difference shapes how OMO should be designed. Drugstores emphasize inventory visibility and promotional integration, while home improvement stores require broader support, including product details, store layout, pickup options, and consultation opportunities.

Implications for OMO Design

These differences can be summarized as follows: drugstores are “high-frequency, everyday retail,” while home improvement stores are “low-frequency, problem-solving retail.” This distinction translates directly into different OMO design philosophies.

In drugstores, the focus is on creating a continuous cycle of pre-visit, in-store, and post-visit engagement. Mobile apps and membership programs play a central role. MatsukiyoCocokara & Co. has developed its official app to integrate inventory checks, pricing, and customer ID functions, while also emphasizing personalized engagement through digital touchpoints.

Similarly, Tsuruha Holdings integrates loyalty programs, coupon distribution, and prescription-related services through its app ecosystem. These efforts aim to increase visit frequency and strengthen ongoing customer relationships. In drugstores, OMO is fundamentally about sustaining continuous engagement.

In home improvement retail, OMO is structured around individual projects. Cainz provides features such as online ordering, in-store pickup, inventory visibility, and store location guidance through its app. The “My Store” function allows customers to check stock availability and navigate stores efficiently, aligning well with purpose-driven shopping behavior.

DCM Holdings also emphasizes the integration of physical stores and online services, promoting a seamless BOPIS (Buy Online, Pick Up In Store) model. In this context, store visits are not just for pickup—they are opportunities for additional purchases, consultation, and problem-solving.

Thus, OMO in home improvement retail must support the entire flow of planning, execution, and completion of a task or project.

Conclusion

Home improvement stores and drugstores share the common role of supporting everyday life, yet they differ fundamentally in purchase motivation, visit frequency, product characteristics, and the role of the store.

Drugstores function as high-frequency retail that supports daily life, while home improvement stores serve as problem-solving destinations for specific needs. These differences directly influence how OMO should be designed. Drugstores require a continuous engagement cycle across pre-visit, in-store, and post-visit stages, while home improvement stores require a project-based approach that supports research, confirmation, pickup, and consultation.

Understanding these distinctions is the first step toward designing effective OMO strategies tailored to each retail format.

In the next chapter, we will further examine the evolving role of physical stores, using real company data and case studies to provide a more concrete analysis.

References

■ Public Statistics and Industry Data

Ministry of Economy, Trade and Industry (METI)E-Commerce Market Survey of Japanhttps://www.meti.go.jp/statistics/tyo/tyoukei/result-2.html

※ Provides foundational data such as e-commerce market size and penetration rate, which underpin OMO-related consumer behavior

Small and Medium Enterprise Agency (METI)Retail and Distribution Industry Materials (Definition of Drugstores)https://www.chusho.meti.go.jp/koukai/shingikai/torihikimondai/021/dl2/028.pdf

※ Defines drugstores as retail formats handling pharmaceuticals, daily goods, food, and related products

Japan Association of Chain Drug StoresIndustry Statistics and Market Datahttps://www.jacds.gr.jp/

※ Includes market size (approx. ¥9 trillion) and number of stores

Japan DIY Homecenter AssociationIndustry Overview and Business Descriptionhttps://www.diy.or.jp/i-information/association/jigyo/

※ Covers industry structure, number of stores, and characteristics of home improvement retail

■ Drugstore Company Case Studies

MatsukiyoCocokara & Co.Integrated Reporthttps://www.matsukiyococokara.com/sustainability/integrated_report/pdf/MC%26C_integrated_report_2025.pdf

※ Covers product composition, customer strategy, and digital/app initiatives

Corporate History and Overviewhttps://www.matsukiyococokara.com/company/history/

※ Background of digital transformation and customer touchpoint strategies

Tsuruha HoldingsGroup Information and Corporate Strategyhttps://www.tsuruha-hd.com/company/group/groupinfo/

※ Covers app integration, prescription services, and customer engagement initiatives

■ Home Improvement Retail Case Studies

CainzOfficial Release (App and Store Integration Features)https://www.cainz.co.jp/news/4150/

※ Includes inventory search, in-store pickup, and “My Store” functionality

DCM HoldingsIntegrated Report 2024https://www.dcm-hldgs.co.jp/grp/pdf/grp/ir/ir-library/integrated-report/2024_view.pdf

※ Covers OMO strategy, BOPIS model, and online-offline integration policies

■ Supplementary Consumer Behavior Data

Ministry of Internal Affairs and CommunicationsFamily Income and Expenditure Surveyhttps://www.stat.go.jp/english/data/kakei/index.html

※ Provides supporting data on household consumption and shopping frequency