Wal-Mart offers rescue package to Japanese supermarket
Turnaround proposal for Daiei
Wal-Mart hopes to increase its presence in the Japanese market through a rescue package for underperforming supermarket chain Daiei.
Reports in Japan say the world’s biggest retailer plans to submit a proposal for turning Daiei around to the Industrial Revitalization Corporation of Japan (IRCJ).
Daiei has been struggling for sales in the highly competitive Japanese consumer market, and has had problems servicing its high levels of debt. A key part of Wal-Mart’s plan would be to use its buying power to enable Daiei, Japan’s third biggest supermarket chain to source more cheaply.
Wal-Mart already has a presence in the Japanese market through its stake in the Seiyu chain, which now offers Wal-Mart ranges including the George clothing brand.
The Japanese media has reported that John Menzer, president of Wal-Mart’s international division, has visited the IRCJ to formally express an interest in supporting Daiei.
