Headlines

A Yen for Seiyu

Wal-Mart adds to its stake in struggling Japanese retailer, giving it almost total control

Published

17 years ago

December 6, 2007

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Wal-Mart Stores Inc. (Bentonville, Ark.) has raised its stake in the Japanese retailer The Seiyu Ltd. (Tokyo) to 95.1 percent, giving it managerial control of the money-losing chain and solidifying its foothold in an intensely competitive market.

Wal-Mart, which had already owned 50.9 percent of Seiyu, had previously announced it was looking to gain full ownership in hopes of speeding management decisions for Seiyu's turnaround.

Since entering the Japanese market in 2002, Wal-Mart has been gradually raising its stake in Seiyu, the fifth-biggest retailer here with about 400 stores nationwide. But Seiyu has struggled amid intense competition from smaller retail chains and major local companies that are introducing Wal-Mart-style mega-stores and price-slashing. The chain has continued to lose money since Wal-Mart struck the Japan partnership. Seiyu has said it is expecting its sixth straight year of losses this year.

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