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Is Walmart In Japan In 2022? (Yes, But Not What You Think)
Japan boasts the third-richest global economy, making it a natural choice for American companies to seek to make a home there.
That can be difficult, though, especially for Western companies, who may lack insight into the particular culture of Japan and its shoppers.
You may have been curious about Japan’s Walmart stores if your visit to the Land of the Rising Sun was successful. While the short answer is yes it isn’t exactly as you may think.
Japan: How many Walmarts are there?
Walmart doesn’t have any actual store-brand locations in Japan; instead, Walmart owned and operated the established Japanese Seiyu grocery stores.
According to Bridget Goldschmidt of ProgressiveGrocer.com, there are about 300 Seiyu locations all throughout Japan.
Some of these are located in Tokyo’s vicinity, including a number near Nagano or Kyoto.
Seiyu – What’s it all about?
Seiyu stands for the Japanese grocery store chain, which Walmart bought to its full ownership in 2008.
Established in 1963, the company has long been known for its reliability in Japan. Walmart acquired a 37% stake in the company and began their acquisition of it in 2002.
Walmart was able to acquire a majority of the stake three years later.
Walmart, six years following its original investment in Seiyu, became its sole owner.
Seiyu Supermarkets is more similar to Walmart Neighborhood Markets. Seiyu Supermarkets is closer to Walmart Supercenters.
And then there is one Seiyu General Merchandise store, which doesn’t sell any food, located in Tokyo.
Christian Monson wrote about Japan shopping. He described many similarities and contrasts between Seiyu’s and Walmart.
For starters, Monson thinks the Seiyu Supermarkets are almost totally comparable to Walmart Neighborhood Markets.
Seiyu supermarkets can feel almost like Western supermarkets according to Mr.
The hypermarkets have the biggest differences, in Monson’s opinion, though.
Seiyu hypermarkets can be found in basements of big buildings, in bustling cities like Tokyo.
Walmart may have had this in mind when they were interested in Seiyu’s acquisition. Supercenters in major cities aren’t known for being accessible.
Monson mentions also that Seiyu products may be very different and culturally sensitive. Some stores, for instance, sell kimonos in one size fits all.
Which Japanese Challenges did Walmart Have to Face?
Or, ask people more directly: Why didn’t Walmart succeed in Japan?
When Walmart announced they were giving up 85 percent of their shares, it came after years of slogging through the Japanese retail market with little to show.
This market also has other sellers running, tails tucked; the French Carrefour from France and Alliance Boots in the UK.
Why is it so difficult to get by in Japan?
While this attitude may be somewhat unbending in some ways, it wasn’t fast enough to impact Seiyu’s underperforming sales.
Changes in the supply chain caused a very popular item to disappear from shops. This alone led customers to abandon Seiyu.
The same article also stated that Walmart’s higher-ups were more focused on managers than employees.
Walmart’s preference for frozen foods, which are very common in the U.S., was confusing to Japanese customers who were used to buying fresh produce and meats.
Is Rakuten Part Of Walmart?
Rakuten is a partner in business and a stakeholder with Walmart.
Rakuten bought 20 percent of Seiyu’s shares (Walmart will still retain a 15 per cent share). This was after Walmart sold most of its shares.
Walmart was also joined by Rakuten for the launch of an online store, called Walmart Rakuten Ichiba.
The idea was to create an eCommerce platform for American goods that Walmart would fulfill.
Additionally, Rakuten and Walmart teamed up to offer online grocery delivery and e-readers/ebooks/audiobooks, a la Amazon.
Rakuten does not belong to Walmart. However, they are close friends in many areas and have multiple investments.
Walmart might interest you if you’re looking for more information.
Walmart has been present in Japan ever since the beginning of 2000. But it is clear that things have not always gone as planned.
Walmart’s failure to adapt to deeply embedded Japanese culture and customs was evident.
Walmart should still be interested in their strong ties with Rakuten Japan’s largest online retailer.
.Is Walmart In Japan In 2022? (Yes, But Not What You Think)