Japan’s Sumitomo Corporation will buy a 22 per cent stake of Simple Mart, the second-largest supermarket company in Taiwan.

The trading company will pay around ¥4.5 billion yen (US$41.1 million) for the stake in a transaction set for August, the two sides have agreed.

Sumitomo has a partnership with Simple Mart’s parent, Taipei-based insurance and retail group Mercuries & Associates, in drugstore businesses in Taiwan. The Japanese investment will help Simple Mart double its store count by 2023.

Founded in 2006, Simple Mart has more than 600 stores across Taiwan.

Sumitomo will analyse data from Simple Mart’s online sales and rewards program to identify shopper favourites and improve store systems.