Japan's Seiyu has announced that its parent, US retail giant Wal-Mart, is gearing up for expansion in the Japanese market with the establishment of a holding company to prepare for M&As and expansion of operations.

The holding company now controls Seiyu's 387 Seiyu supermarkets and 271 Seiyu GMSs (food & general merchandise stores).

Since taking full control of Seiyu last year Wal-Mart has indicated it will be going after competitors in Japan for M&As this year.

"The decision will continue to strengthen Wal-Mart's presence in the second-largest retail market in the world," Wal-Mart said.

Any future additions to the Seiyu family are expected to become subsidiaries of the holding company, which is wholly owned by the US retailer.