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TOKYO, JAPAN - JAPANESE supermarket chain Seiyu, a subsidiary of US retail giant Wal-Mart Stores, said on Monday it will close 20 stores in a bid to turn a profit after six straight annual losses.
The company did not say whether it would cut jobs. The Nikkei newspaper said 350 positions would go through early retirement.
'We shall stop operations and close about 20 existing stores that do not fit into the new basic store format,' said a statement from the company, which runs about 400 stores nationwide.
Although Seiyu has taken similar measures in the past, it is the first major restructuring since Wal-Mart took full ownership of the company in Dec.
The Japanese supermarket operator said it continued to renovate stores and improve its product lineup.
Critics have said Wal-Mart's mass-market formula faces a tough sell in Japan, where customers are known for being ready to pay higher prices for luxury or convenience.
Wal-Mart in 2006 exited Germany and South Korea amid criticism that it could not adapt to local tastes but it has pledged to keep up a presence in Japan, the world's second largest economy. -- AFP
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