Wal-Mart's Japanese Seiyu division announces cutbacks

BENTONVILLE, Ark. & TOKYO, Japan Wal-Mart's Japanese subsidiary, Seiyu, announced plans to close 20 stores, which will affect 5% of the company’s 392 stores in the country, and 350--or 6%--of Wal-Mart’s approximately 5,700 full-time employees there. The decision came because of falling revenues and a sixth-straight net loss in 2007.

The company stated that despite the closure, it will look to open stores in new geographic regions and consider acquisitions as a method of expansion. Plans include the renovatation of 100 large stores and the opening of smaller stores in areas not currently served by Seiyu.

Acquisition targets may include supermarket chains with a nationwide network, according to Seiyu senior vp Ryo Kanayama. "Operations that are highly complementary with our store network are attractive," he said at a media briefing. "Our stores are concentrated in the Tokyo metropolitan area. We would look at areas outside that area."

Wal-Mart took control of Seiyu in 2008, after a six-year investment in the Japanese company.