Seven & I Holdings has indicated that it will convert 20% of its Ito-Yokado supermarkets into its newly-launched discount format this year.
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The news follows a major shakeup of the organisation and personnel within the Ito-Yokado chain.
Reports in the Japanese media put the total planned investment at around JPY10bn (USD109.85m). However, when contacted by just-food, the company refused to confirm this level of investment.
“We will be focusing on discount store outlet formats, which we have found to be more profitable as they have proved popular with price-sensitive customers in the new economic climate,” a Seven & I spokesman told just-food.
The company has abandoned previous tactics, such as an aggressive programme of new store openings. Instead it will look to overhaul its product line-up and renovate existing stores, the group revealed.
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By GlobalDataAbout ten stores will be converted into Ito-Yokado “The Price” discount stores offering food at prices 10%-30% lower than those in regular Ito-Yokado stores.
The company had previously opened two Ito-Yokado stores in Tokyo.
