US retailer Walmart has officially announced that they will be selling 85% of its stake from the wholly-owned Japanese supermarket. Walmart known as a leader in the retail market has been facing several losses after the global lockdown has been making several internal changes. The company has said that they will be selling a major portion of their share in Japanese subsidiary Seiyu. Walmart has also stated that it will be retaining a 15% stake in the company. It looks like from this deal, Walmart will be getting 172.5 billion by selling companies stocks. A popular global investment firm KKR & Co has come forward in getting 65% of the company share making it the single largest company to holds the majority of its share.
Japanese online retailer Rakuten has announced that they will be purchasing 20% of the stake from Walmart. KKR and Rakuten are the two companies that will be working together in bringing in experts from the industry for increasing their sales through online platforms. It looks like these companies will be working forward to bring in some of the initial measures to transform their selling through the online platforms. Retail industries are planning to develop mobile applications for selling their products. Many big players in the retail industry have been facing huge losses in recent days. It looks like the technology has once again proved its potential in developing online platforms for selling products.
Many might have known about the boom in the online e-commerce platform where these applications give access to know about the millions of products from the internet. Looks like Seiyu Chief Lionel Desclee will continue to carry forward his role in guiding the company in the transition period. It looks like after this period he will be taking a new role at Walmart. It’s said that all these three companies will be residing the new CEO of the Japanese supermarket subsidiary Seiyu. Bentonville which is an Arkansas-based Walmart has been operating its stores in various parts of Europe and other parts of the continent have acquired a small portion of the Seiyu in 2002.
Seiyu has been officially declared to be coming under the guidelines of Walmart. Japanese retail market has been a tough ground for foreign players entering the market, Walmart being a giant in the industry has somehow managed to enter the Japanese market through its innovative marketing strategy. Japanese buyers were initially questioning the fewer price products as a cheaper one but as time passes Japanese people have attracted the discounted products. It took a long time for these companies to teach their customers that they will be offering high-quality products at a cheaper price.
A trend that has been kicked started soon after the lockdown to move the retail business into the online platforms. Online shopping and ebook-service support are the two core areas that Rakuten and Walmart have been concentrating on for a quite long period of time. Seiyu is a group of many retail stores located in various parts of Japan, it’s calculated that this company has 300 stores in total operating in Japan. This retail store founded in 1963 has been operating for more than a couple of decades has generated USD 524 billion as revenue in the fiscal year 2019.