Walmart
announced
today it will sell most of its shares in Seiyu, the Japanese supermarket chain it acquired 12 years ago, to KKR and Rakuten. The deal values Seiyu at about $1.6 billion and means Walmart will almost completely exit its operations in Japan.
Under the agreement, investment firm KKR will buy a 65% stake in Seiyu, while
Rakuten,
Japan’s largest e-commerce company, will take a 20% stake through a newly created subsidiary called Rakuten DX
. Walmart will retain a 15% stake in Seiyu.
After struggling with strong competition in Japan and low margins, Walmart
reportedly considered
relisting Seiyu or its holding company, Walmart Japan Holdings last year.
Rakuten is already familiar with Seiyu’s business because it
formed a strategic alliance with Walmart in 2018
that included launching an online grocery delivery service in Japan. Called Rakuten Seiyu Netsuper, the online delivery service includes a dedicated fulfilment center, in addition to inventory picked up from Seiyu’s supermarkets.
Walmart and Rakuten partner on grocery delivery in Japan, Kobo e-books and audiobooks in U.S.
After the deal, Seiyu will be part of Rakuten DX, which is intended to bring more brick-and-mortar stores online through Rakuten’s e-commerce and cashless payment channels.
Japan’s online grocery delivery market has trailed behind other countries, due in part to the reluctance of shoppers to purchase fresh food online. But the COVID-19 pandemic prompted a rapid shift in consumer habits. According to
a July 4 report from the Japan Times
, internet sales accounted for about 5% of total grocery sales, compared to 2.5% before the pandemic.
Rivals to Rakuten include grocery delivery services run by Aeon (in partnership with Ocado), Amazon and Ito-Yokado.
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