Seiyu, Wal-Mart's Japanese arm, has booked a net loss of over JPY20.9bn (US$193.7m) for 2007 due to a series of asset write-downs.

The company, which warned of the losses on Tuesday (12 February), posted its annual results today.

Seiyu said it had missed its sales and earnings targets after seeing operating profit tumble 87% to JPY434m and sales dip 0.9% to JPY952.3m.

The retailer said its food sales were "comparatively steady" last year, although general merchandise sales had slowed.

During the latter past of last year, Seiyu introduced a series of price cuts and remodelled 80 stores - just under a quarter of its outlets - under its Sensei! Kando Kakaku programme.

"The sales of remodeled stores have been growing due to merchandise assortment adapted to local taste and preferences, enhanced perishables departments, and improved store environment for customers to enjoy shopping," the retailer said.

Wal-Mart moved to take total control of Seiyu mid-way through last year amid concerns over the company's performance. The US retail giant now owns 96% of the business.