Japanese retail giant Seven & I plans to close 40 of its Ito-Yokado branded supermarkets and general merchandise stores by 2020.
Japan’s Nikkei reports that Seven & I, which is the parent of the 7-Eleven retail brand, expects the closures will boost profits. Forty stores represents about 20 per cent of its Ito-Yokado chain, which is struggling with lacklustre sales, especially of its apparel lines.
“Seven & I will target money-losing and old locations outside major metropolitan areas for closings. More resources will be poured into Tokyo-area stores instead,” the Nikkei reported.
The company’s financial year ends in February and by then, the first of the stores to be closed will be identified, with 10 more each year after that.
While Seven & I posted a record profit in the six months to August, its Ito-Yokado arm actually lost money.
The company says it will continue to open new stores as opportunities arise, but most likely only about one each year.
The Nikkei reported that the company may also close some poor-performing Sogo and Seibu department stores, but there were no details of that plan.
