Posted on: Wednesday, December 8, 2004

Wal-Mart among suitors for Daiei

By Yuri Kageyama
Associated Press

TOKYO — Wal-Mart Stores is among the potential suitors for cash-strapped Japanese supermarket chain Daiei Inc., which is undergoing government-guided rehabilitation, while the U.S. retail giant hopes to grow in the world's second largest retail market.

A Wal-Mart spokeswoman in Tokyo confirmed yesterday that the retailer, based in Bentonville, Ark., remains interested in Daiei. Wal-Mart is interested in international growth and will look at opportunities, she said, while refusing to elaborate.

Daiei is being restructured under the Industrial Revitalization Corp. Japan, set up by both the public and private sectors to help struggling companies. Japanese retailers also have been reported as prospective bidders, including Ito-Yokado Co. and Aeon Corp.

Daiei has four stores in Hawai'i operated by Honolulu-based The Daiei (USA) Inc., a subsidiary of Daiei Inc.

Wal-Mart Stores Inc., the world's largest retailer, has a 37.3 percent stake in Japanese retailer Seiyu Ltd., which runs about 400 stores nationwide. Adding even a part of Daiei's approximately 200 stores to its chain would be a big plus for Wal-Mart.

Since its arrival in Japan in 2002 through its Seiyu partnership, Wal-Mart has been gradually introducing its computerized systems, cost cuts and global-supply chain to its Japanese stores by remodeling stores and opening large-scale supermarkets, which are still relatively rare in Japan.