Ito-Yokado to close 40 stores
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Japanese retail giant Seven & I plans to close 40 of its Ito-Yokado branded supermarkets and general merchandise stores by 2020.
Japan’s Nikkei reports that Seven & I, which is the parent of the 7-Eleven retail brand, expects the closures will boost profits. Forty stores represents about 20 per cent of its Ito-Yokado chain, which is struggling with lacklustre sales, especially of its apparel lines.
“Seven & I will target money-losing and old locations outside major metropolitan areas for closings. More resources will be poured into Tokyo-area stores instead,” the Nikkei reported.
The company’s financial year ends in February and by then, the first of the stores to be closed will be identified, with 10 more each year after that.
While Seven & I posted a record profit in the six months to August, its Ito-Yokado arm actually lost money.
The company says it will continue to open new stores as opportunities arise, but most likely only about one each year.
The Nikkei reported that the company may also close some poor-performing Sogo and Seibu department stores, but there were no details of that plan.
Questions & Answers
Q.Which specific types of Ito-Yokado stores are being targeted for closure?
Which specific types of Ito-Yokado stores are being targeted for closure?
The company intends to close money-losing and older Ito-Yokado locations situated outside of major metropolitan areas. Resources will instead be redirected towards stores within the Tokyo region.
Q.What is the timeline for the planned closure of the 40 Ito-Yokado stores?
What is the timeline for the planned closure of the 40 Ito-Yokado stores?
The first stores to be closed will be identified by the end of the current financial year in February. Following this, approximately 10 additional stores will be closed each year.
Q.Is the Seven & I parent company also performing poorly, like its Ito-Yokado division?
Is the Seven & I parent company also performing poorly, like its Ito-Yokado division?
No, Seven & I as a whole reported a record profit during the six months leading up to August. Only its Ito-Yokado arm experienced a financial loss during that period.
Q.Will Seven & I completely stop opening new Ito-Yokado stores in the future?
Will Seven & I completely stop opening new Ito-Yokado stores in the future?
The company states it will continue to open new stores when suitable opportunities arise. However, it is expected that this will only amount to approximately one new store opening per year.
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