Japanese retailer Aeon is mulling a number of structural changes as it attempts to return to profitability, having posted its first loss in seven years earlier this month.
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Aeon posted a net loss of JPY29.45bn (US$32.6m) in the nine months ended 20 November, down from a profit of JPY31.92bm in the corresponding period a year earlier.
An Aeon source told just-food that the company’s previous aggressive store opening strategy is out, with at least 60 unprofitable stores to be closed over the next three years.
Aeon said: “We have pinpointed weaknesses in our organisation and will be strengthening crossed cooperation with each company in the group from now on.”
Aeon is hoping that its recent tie up with Japan’s biggest trading house, Mitsubishi Corp., will translate to more efficient procurement given Mitsubishi’s global business reach, especially in China.
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By GlobalData“Dealings that overlap between each company are being consolidated. And group management efficiency improvements are being implemented,” Aeon said.
An alliance in procurement and financial services between Ministop Co. and Lawson Inc., Aeon’s convenience-store affiliates, will also be strengthened.
