Walmart Offloads Japanese Supermarket Chain
It’s been four years since Walmart officially sold a majority of its shares in the Japanese supermarket chain Seiyu to global investment firm KKR and internet services company Rakuten. Now on March 5, KKR and Seiyu have signed a definitive agreements to sell Seiyu to Trial Holdings Inc., a distribution and retail business operator in Japan that operates a network of stores offering “everyday essentials” in Kyushu. As part of this transaction, Walmart will also sell its remaining 15% stake in Seiyu to Trial.
Since 2021, KKR and Walmart have collaborated closely to support Seiyu’s growth through technology adoption. According to Walmart, Seiyu has benefited from a range of value creation efforts such as:
- Improving the quality and selection of products, especially for fresh produce, delicatessen and Seiyu’s in-house brands.
- Developing standard operational processes and adopting technological solutions, such as self-checkout and automatic restocking systems, to aid workers, leading to solid man-hour productivity increases.
- Transforming Seiyu from a traditional general merchandise store into a “supermarket” by optimizing its product assortment and distribution strategies.
- Accelerating Seiyu’s digital transformation to enable a superior customer experience, including by strengthening and modernizing its IT infrastructure.
Tsuneo Okubo, CEO of Seiyu, said: “We would like to thank our longstanding shareholders, including KKR and Walmart, for their support, which has enabled us to create substantial value for our customers and business. Over the past few years, we have leveled up our merchandising strategies and in-store operational capabilities while reinvesting in our stores, employees and IT capabilities as part of our transformation. We now look forward to building on this success with the support of our new shareholder Trial in Seiyu’s next chapter.”
KKR made its investments in Seiyu from its Asian Fund IV. The transaction is expected to close in the second quarter of 2025, subject to regulatory and customary closing conditions.
Meanwhile, Walmart recently posted another strong quarter, reporting revenue of $180.6 billion, up 4.1%, for the three-month period ended Jan. 31. The gross margin rate in its fourth quarter went up 53 basis points, led by Walmart U.S.
The company raised its dividend 13% to 94 cents per share, its largest increase in more than a decade.
Each week, approximately 270 million customers and members visit Walmart’s more than 10,750 stores and numerous e-commerce websites in 19 countries. With FY2025 revenue of $681 billion, the company employs approximately 2.1 million associates worldwide. Bentonville, Ark.-based Walmart U.S. is No. 1 on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. PG also named Walmart one of its Retailers of the Century.
