Walmart nearly exits Japan after selling Seiyu stake

Tough market: Walmart and Seiyu signs are seen in Tokyo. Walmart has struggled in Japan, like other foreign entrants such as Tesco PLC and Carrefour SA who were lured by the high spending power of Japanese consumers but were frustrated by tough competition. — AP

TOKYO: Walmart Inc is selling a majority stake in Japanese supermarket chain Seiyu to investment firm KKR and e-commerce company Rakuten for over US$1bil, after suffering years of poor profitability amid stiff competition.

The deal, which values Seiyu at 172.5 billion yen (US$1.65bil) including debt, comes after on-off speculation about the world’s biggest retailer looking to exit Japan. It is below the 300-500 billion yen it reportedly sought a few years ago.