Wal-Mart Made Inroads into Japanese Market

American retail giant Wal-Mart Stores is taking a minority stake in Japanese No. 4 supermarket chain Seiyu, and advances into Japanese market.

Wal-Mart and Seiyu announced at press briefing in Tokyo on the 14th, “Wal-Mart agreed with Seiyu to buy 6.1 percent of Seiyu stocks in May, and to raise its stake up to 66.7 percent by 2007. ” It might cost 260 billion yen for final takeover.

Japanese distribution market will have changed map with the arrival of Wal-Mart, which earns yearly 29 trillion yen through 4,400 stores and 1.3 million personnel in 9 countries including America, England, Mexico and Korea.

Seiyu has been trying to introduce foreign capital in the long recession in order to clear out the insolvent bonds of affiliate banks and to strengthen business through the improvement of outworn equipments

ksshim@donga.com