Japanese supermarket chain Daiei is set to become a full subsidiary of Aeon.

Aeon, which currently owns 44.15 per cent of Daiei, will buy the remaining stake of the struggling supermarket chain for 27.8 billion yen ($255 million).

Household spending in Japan has declined, resulting in an operating loss of 3.9 billion yen ($35.7 million) for Daiei in the quarter ending May.

Aeon has already started to restore Daiei’s profitability by renovating aging stores and focusing on food sales.

The company says it will continue reforming Daiei, together with its other supermarket stores, which have also struggled from stiff competition from the likes of Seven & I Holdings.