Japan: Ito-Yokado may close 10% of its supermarkets
The holding company is considering plans to shut 15 to 20 loss-making midsized Ito-Yokado stores, including an outlet in Tsuchiura, Ibaraki Prefecture, within three years, according to the sources.
The supermarket operations suffered a 52.7 percent year-on-year plunge in group operating profit in March-May 2012.
The setback came as the surge in demand caused by the March 2011 earthquake and tsunami that hit the Tohoku region fell off.
Also, stores in smaller cities failed to boost sales due to competition from large-scale shopping malls equipped with amusement facilities.
While closing underperforming stores, Seven & i will increase the number of its Ario large-scale shopping malls and food-centered small stores.
Source: yomiuri.co.jp
