Walmart says it will close 30 stores in Japan to restore profitability.

The world’s largest retailer says the stores – trading under the local Seiyu brand – are underperforming. They represent seven per cent of the company’s 434 strong Japanese network.

A further 50 stores in Japan will be remodelled to better appeal to local customer dynamics and the company says it will put a fresh focus on eCommerce to drive both sales and brand awareness.

“The company will focus resources on driving continued strong performance in locations that are convenient for customers and allow for an improved shopping experience,” Wal-Mart said in a statement.

Walmart took control of the Seiyu chain in 2008, six years after entering Japan via a strategic stake in the business. While the network has been expanding, sales have not been growing at the anticipated rate, with Japanese consumers slow to adopt the US giant’s discount format.

Walmart cut its global full year profit forecast in August, citing rising costs.