Wal-Mart has started a restructuring programme at its Seiyu subsidiary in Japan that will see the world’s largest retailer close around 23 stores in the country.
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The US retail giant revealed the plans as part of its company-wide quarterly statement to the US Securities and Exchange Commission.
Wal-Mart said it would close “approximately” 23 outlets and “certain excess properties”. The retailer added: “This restructuring involves incurring costs associated with lease termination obligations, asset impairment charges and employee separation benefits.”
In the nine months to the end of October, Wal-Mart booked after-tax operating losses as discontinued operations of $22m.
Wal-Mart first invested in Seiyu in 2002 but Japan’s fifth-biggest retailer by sales has struggled in a competitive market. Seiyu became a wholly-owned Wal-Mart subsidiary in March 2008.
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By GlobalData
