Just last week, reports surfaced that Walmart was considering parting ways with Seiyu, its Japanese brick-and-mortar banner. But after the reports hit news headlines, Walmart is now claiming it has not decided to sell Seiyu, as it wants to further develop its business in Japan, according to Reuters.
“Walmart has not made a decision to sell Seiyu. We are not in any discussions with prospective buyers, and we continue to build our Japan business towards the future to meet the changing needs of customers there,” a spokesperson for Walmart told Reuters.
While Nikkei Asian Review reported Walmart was looking to depart from the Japanese market, along with Seiyu, Walmart also has an online grocery delivery service in Japan with e-commerce firm Rakuten, as we covered on our sister publication AndNowUKnow.
Reuters reports that Japanese supermarkets are currently facing lower profits due to rising competition from online retailers, discount drugstores, and convenience stores. However, the news source claims that Seiyu, with more than 300 stores, would be a large asset for another company to benefit from as Japan is a broadening market for global private equity funds.
But could this also be the reason Walmart is choosing to hold onto the supermarket chain for now? Stick with Deli Market News as we continue to report on the latest retail happenings.