Japan would appear to be a promising market for big-box retail, but not for Wal-Mart (WMT). Japan is one of the world’s largest economies and wealthiest nations, but too few people want to shop at Seiyu Ltd., Wal-Mart’s unit there.
The world’s largest retailer has just announced that it will have its sixth year of losses in Japan, a market where its has burned through over $1 billion. But, things are no better and the locals like Aeon have it by the throat.
Seiyu is a public company, but Wal-Mart owns over 50% of its shares. It has not been able to apply its retail wizardry to fixing the Japanese companies problems. And, that is not likely to happen. The Wal-Mart formula does not work everywhere. The company has had to exit German and South Korea due to poor results. But, the WMT formula appears to work well in other markets including China and Mexico.
Time for Wal-Mart to sell it interest to the public investors in Japan or a private equity concern and move on to more fertile ground.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
