Wal-Mart Stores have taken over the world. Monday they announced the company would take over its subsidiary in Japan, Seiyu Ltd. Wal-Mart plans on changing this slump for one of the world’s largest economies.
The move allows this largest retailer an added investment, up to almost $900 million dollars just for Japan. Wal-Mart has 50.9 percent of shares in Seiyu, and pays $1.23 per share. The growth of the highly successful retail chain ensures the long-term achievement will only prosper for Japan.
If the deal is successful Seiyu will be deleted from the Tokyo Stock Exchange.
Wal-Mart’s fast moves are necessary for growth. Management changes are promised, alongside improvement for less than great sales. Many assumed the world’s largest company would have no problem moving in because of Wal-Mart’s increase buys of Seiyu’s stocks. It was only a matter of time.
Seiyu’s net loss in less than a year came to 11.42 billion yen, from just half of that from a loss a year before. Wal-Mart stores in the U.S. have also lost a third quarter of it’s profits. Although they ensure they were going to cut cost controls.
Wal-Mart’s expansion has traveled all over including China and even India. Since Japan such a great commodity for the retail market, they plan on opening larger supermarkets, remodeling the stores, and introducing more high scale technology. For Wal-Mart it is just one country at a time.
http://www.msnbc.msn.com/id/21419150/
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