Wal-Mart raises Seiyu stake to 95% to speed up retailer's turnaround

Wal-Mart Stores has raised its stake in supermarket chain Seiyu to 95.1 percent, Seiyu said Wednesday, marking the U.S. retailer's latest attempt to solidify its foothold in the difficult Japanese market.

A customer walks by Seiyu's Totsuka store in Yokohama on Tuesday. AP PHOTO

Wal-Mart Stores Inc., the world's biggest retail chain, already owned 50.9 percent in Seiyu Ltd. But it launched the effort to buy more shares in October to attain full ownership.

The results of the bid, which ended Tuesday, were confirmed by Seiyu spokeswoman Shoko Nagata.

The effort underlines Wal-Mart's strategy of taking a lead in speeding up management changes to turn around Tokyo-based Seiyu's struggling business, and ends for now doubts about whether Wal-Mart may exit Japan.

Last year, Wal-Mart sold its operations in Germany and South Korea.

Since entering the Japan market in 2002, Wal-Mart has been gradually raising its stake in Seiyu, which has some 400 stores nationwide.

Wal-Mart, based in Bentonville, Ark., has about 3,000 stores outside the United States. Its third-quarter profits rose 8 percent on better-than-expected revenue of $91.95 billion (¥10.2 trillion) in the period ending Oct. 31, up 8.8 percent on year.