Walmart plans to re-listing Seiyu, to get more investment. (Image via Japan Times)

Walmart Plans to Re-Listing Seiyu Japan

Toska Dhia Andana
Business & Industry
Retail & Food Services
Jun 27, 2019
2241
The supermarket rivalry in Japan is tight. Supermarkets such as Aeon Co. and Seven & I Holdings Co. are one of the biggest supermarkets in Japan, making other supermarkets like Seiyu failing to reach the top. Walmart Inc. invented in Seiyu in 2002 and now relisting Seiyu. What exactly happened?

Six years after Walmart invested in Seiyu, they took it private in 2008. Since then, Seiyu has been invested in the area of digital operation. However, the supermarket faced cost pressures and failed to grow in its home market. Many foreign retails have failed to build their steps in Japan though, as Tesco PLC and Carrefour SA stepped back from the Japanese retail industry.

Some of the struggles are consumers in Japan demand fresh food and efficient customer service. With those two demands, it is hard for the supermarkets to sell products in low price. That makes the industry to be highly competitive which made foreign retails to stay out of Japan.

In the Seiyu case, Walmart is reported has been trying to help them with other innovations, but still failed to compete with the rivals. Last year, Seiyu launched an online grocery store, to ease the consumers to shop. Not only that, they did it to compete with the rival, Amazon Fresh service. Nonetheless, it is reported that Seiyu has closed unprofitable stores.

Walmart hopes with listing Seiyu in the market, it will strengthen the in-stores and online store’s values.

Source: https://www.bloomberg.com/news/articles/2019-06-26/walmart-plans-to-re-list-japan-unit-seiyu-keep-majority-stake

Japan , Supermarket , Walmart , Seiyu , Retail , Listing