Walmart to relist Seiyu in global business revamp

1 min readUpdated Jun 28, 2019Jul 23, 201911:15 PM

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Walmart says it plans to relist its Seiyu retail business in Japan on the stock market, freeing capital to focus on its China and India business units.

While the US retailer will retain a majority interest in Seiyu, it believes floating the unit will allow it to operate more independently.

The move is part of a three-year business plan for Seiyu, part of a broader push to reshape Walmart’s international business.

“As the parent loses the wherewithal to support low-performing overseas units, revamping those operations has become imperative,” observed Nikkei writer Kento Hirashima.

Walmart had previously been tipped to sell the Japanese business unit, but has discarded that option.

Seiyu also plans to expand its online grocery retail business and boost its range of fresh produce and prepared foods.

Walmart forged an investment and operational alliance in 2002 before Walmart took full control six years later and Seiyu was delisted from the Tokyo Stock Exchange.

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What this means

Walmart's decision to partially relist Seiyu is a pragmatic pivot from a complete sale, allowing capital redeployment while retaining influence. This move pressures rivals in Japan's competitive retail landscape, particularly those with less agile e-commerce strategies. Compared to Panpuri's aggressive 16-store Asian expansion or 7-Eleven's experiential concept store in Macau, Walmart's focus is on financial restructuring and operational autonomy rather than physical expansion. The hybrid model offers a balance of local market responsiveness and global strategic alignment, potentially working well if Seiyu can use newfound independence. We'll be watching the initial stock market valuation and Seiyu's subsequent e-commerce growth figures.

Rajiv Menon · Retail News Asia newsroom

Questions & Answers

Why is Walmart relisting its Seiyu business in Japan?

Walmart intends to free up capital by relisting Seiyu. This will allow the company to focus its resources on its business units in China and India, as part of a broader international business reshaping.

Will Walmart still have control over Seiyu after the relisting?

Yes, Walmart will retain a majority interest in Seiyu even after it is floated on the stock market. The aim is for Seiyu to operate more independently while remaining under Walmart's overall control.

What are Seiyu's business plans for the future?

Seiyu's three-year business plan includes expanding its online grocery retail operations. It also aims to boost its offerings in fresh produce and prepared foods to cater to changing consumer demands.

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