21 February 2005 – Tokyo (JPN): Wal-Mart plans to turn Japanese retailer Seiyu into a subsidiary this year, raising its stake in the company from 37 per cent to more than 50 per cent, according to CEO of the retail giant’s international division John Menzer.
Seiyu, which has shareholders’ equity of only Â¥1.1 billion ($10.5 million), intends to issue more shares to provide it with more financial options, and will likely offer Wal-Mart the chance to buy additional shares as well as increase its stake, Menzer suggested.
He also indicated that Wal-Mart would need to be flexible regarding strategy, since Seiyu must offer fashionable products in response to the importance of brands among Japanese consumers.
