Japanese retailer Seiyu, in which Wal-Mart owns a majority stake, has warned that it expects to post yet another annual loss in 2007.
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Seiyu, which runs 400 stores throughout Japan, forecast it would book a net loss of JPY5.9bn (US$49.9m) for the year, after it recorded a net loss of JPY6.9bn for the first six months of 2007.
Despite “steady” food sales and growing customer numbers, Seiyu posted an operating loss of JPY2.2bn. The company pointed to a slowdown in sales of seasonal merchandise such as apparel and consumer durables, as well as sluggish growth of tenant sales. Both factors led to sales dipping 1.4% to JPY461.6m during the first half.
Nevertheless, for the full year, Seiyu expects sales to rise to JPY963m and to be able to post an operating profit of JPY4.6bn.
“We didn’t achieve a satisfactory level of performance in the first half 2007, but we see signs of improvement in various parts of our business,” CEO Ed Kolodzieski said.
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By GlobalData“We will expand our activities in areas where positive results have been produced. At the same time, we will steadily advance our initiatives for improving the operational infrastructure.”
