Is Walmart In Japan In 2022? (Yes, But Not What You Think)

Japan is third in world economy wealth, and it only makes sense for American business to want to have a presence there.

That can be difficult, though, especially for Western companies, who may lack insight into the particular culture of Japan and its shoppers.

You might be curious if you have ever been to the Land of the Rising Sun or if you’ve visited Japan. The answer is yes, but it’s not exactly what you might think.

Is Walmart In Japan In 2022?

Walmart’s Japan presence can be seen in its retaining share of the supermarket chain Sieyu and in its partnership to Rakuten. Rakuten is the nation’s top eCommerce platform. Sieyu had been a Walmart subsidiary until recently. But, in November 2020, Walmart announced it was going to sell 85 percent.

Below are details about Walmart Japan Stores, Walmart’s Relationship with Rakuten and Walmart selling their shares in Seiyu.

Is Japan home to many Walmarts?

Walmart Japan does not actually have Japanese store locations. Instead, Walmart Japan owned and operated Japanese Seiyu grocery outlets.

According to Bridget Goldschmidt of ProgressiveGrocer.com, there are about 300 Seiyu locations all throughout Japan.

These include a dozen or so clustered in and around Tokyo, as well as locations near Nagano, Kyoto, Osaka, and Nagasaki.

Seiyu – What’s it all about?

Seiyu stands for the Japanese grocery store chain, which Walmart bought to its full ownership in 2008.

The Japanese chain, which was founded in 1963 had been around for a long time. Walmart first purchased a 37-percent stake in the business in 2002.

Walmart seized the majority stake in three years.

Three years later, just six years after the initial investment, Walmart was made solely owner and absorbed Seiyu in its portfolio.

Seiyu Supermarkets can be compared to Walmart Neighborhood Markets. Seiyu Supermarkets may look more like Walmart Supercenters.

There is also one Seiyu General Merchandise shop in Tokyo that doesn’t sell food.

Christian Monson published a piece about Japan’s shopping and highlighted some similarities and differences in Walmart and Seiyu.

Monson says that Seiyu Supermarkets is almost as comparable to Walmart Neighborhood Marts.

Seiyu supermarkets can feel almost like Western supermarkets according to Mr.

Monson believes that the greatest differences exist between hypermarkets.

Seiyu’s Hypermarkets are found underground of huge buildings located in busy city centres like Tokyo.

Walmart could have been attracted to Seiyu for this reason. Supercenters tend not to be easily found in large urban areas.

Walmart gained full access to new millions of shoppers by acquiring Seiyu in just a few cities.

Monson also remarks that the products in Seiyu stores can be quite different (and culturally appropriate); for example, some stores sell kimonos for the entire family.

Japan: What were the challenges faced by Walmart?

As others ask, why did Walmart fail Japan?

Walmart’s announcement that it would give up 85 percent of its shares came after many years spent in Japan, with very little.

The same market sent others retailers running, tails tucked. These include Alliance Boots and French Carrefour.

So how is it possible to succeed in Japan?

Unfortunately Walmart’s business model of steeply discounted products ran into Japanese distaste for “cheap” products.

Although the attitude is unbending at times, it was not fast enough to significantly impact Seiyu’s already low-performing sales.

Nikkei also points out Walmart’s failure to consider local business customs as well as dietary preferences and labor relations.

The supply chain changed, and a beloved item disappeared from stores. Customers, who had been comfortable with it, decided to not buy Seiyu.

That same article stated that Walmart executives were less concerned about store employees than they are with management.

Walmart’s preference for frozen foods, which are very common in the U.S., was confusing to Japanese customers who were used to buying fresh produce and meats.

Is Rakuten Part Of Walmart?

Rakuten was and remains a joint stakeholder and business partner with Walmart.

Rakuten was actually able to buy a 20% share in Seiyu, while Walmart will continue to hold a 15% stake.

And Walmart teamed up with Rakuten in 2018, when they jointly launched an online store called the Walmart Rakuten Ichiba Store.

The eCommerce platform sold American goods and Walmart fills the orders.

Additionally, Rakuten and Walmart teamed up to offer online grocery delivery and e-readers/ebooks/audiobooks, a la Amazon.

Rakuten, while not being part of Walmart’s portfolio, is closely linked to the company in many ways.

Walmart might interest you if you’re looking for more information.

Conclusion

Walmart has been present in Japan ever since the beginning of 2000. But it is clear that things have not always gone as planned.

Deeply embedded Japanese culture and norms, very different from what Walmart is used to in the States, seemed to contribute to the retail giant’s floundering.

However, their close ties to Rakuten, Japan’s largest online retailer, should yield interesting and ongoing projects in the future for Walmart.

.Is Walmart In Japan In 2022? (Yes, But Not What You Think)