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The third largest Japanese operator of a number of supermarkets,
shopping centres, and department stores in collaboration with the world's
largest retailer, has reported loss for the sixth year running.
Wal-Mart had invested about $2bn in Japanese venture that has about 400
stores. Its venture with Seiyu has yet to turn a profit.
That's not all. Only, a year ago in 2006, the world's giant retailer had
to wind up its operation in Germany and South Korea. Many experts attribute
this to the retailer's inability to adopt to local requirements as the
company is believed to be also facing difficulties in the U. K. according
to indiaretailbiz.com.
The net loss in Japan is more than twice the earlier forecast of ¥
10.4 billion ($200 million). Seiyu has also scaled down the estimates
of operating profits by 90%, from ¥ 4.6 billion to ¥ 400 million.
Sales, during the year, are expected to decline marginally from ¥
963 billion.
Seiyu has attributed its losses to decline in demand of clothing, seasonal
household products, and speciality products.
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