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

Japan’s economy is the third most prosperous in the entire world. Therefore, it makes sense that American businesses want to set up shop in Japan.

However, this can be difficult especially for Western companies that may lack knowledge of the specific culture in Japan or their 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.

What is the number of Walmarts in Japan?

Walmart Japan has no actual stores by its own brand. Walmart Japan is the owner and operator of Japanese Seiyu grocery chains.

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

You will find them in Tokyo or near Osaka, Nagano, Kyoto and Nagasaki.

Seiyu, What Are You?

Seiyu is the name of the Japanese grocery chain that Walmart took full ownership of in 2008.

Founded in 1963, the chain had long been a trusted presence in Japan. Walmart acquired a 37% stake in the company and began their acquisition of it in 2002.

Walmart was able to acquire a majority of the stake three years later.

The company became sole owner three years later. This was just six years from its original investment.

There are three types of Seiyu stores: Seiyu Supermarkets, which are more like Walmart Neighborhood Markets; Seiyu Hypermarkets, which are like Walmart Supercenters.

And then there is one Seiyu General Merchandise store, which doesn’t sell any food, located in Tokyo.

Christian Monson wrote an article about Japan Shopping and described similarities and distinctions between Seiyu, Walmart, and other retailers.

Monson is of the opinion that Seiyu Supermarkets have a lot in common with Walmart Neighborhood Markets.

Seiyu Supermarkets have the same feel as Western supermarkets.

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 may have had this in mind when they were interested in Seiyu’s acquisition. Supercenters in major cities aren’t known for being accessible.

Walmart acquired Seiyu to gain full access in one or two cities to millions more shoppers!

Monson says that Seiyu’s products can have culturally-appropriate variations. For example, certain stores may sell kimonos suitable for all members of the family.

Which Japanese Challenges did Walmart Have to Face?

As some may prefer, they ask: “Why did Walmart fail to succeed in Japan?”

Walmart had spent years slogging through Japan’s retail market without much success and announced their intention to give up 85 percent.

Another retailer has been forced to run, tails down: Alliance Boots UK and French Carrefour.

So why is it so tough to make it in Japan?

Unfortunately Walmart’s model, which offers steeply discounted merchandise, ran up against Japanese dislike for goods that are “cheap.”

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.

A change in the supply chain led to a popular item vanishing from stores; that alone caused customers, comfortable with the previous selection, to avoid Seiyu .

According to that same article, Walmart higher-ups focused more on managerial staff than store employees.

For Japanese consumers who are used to fresh fruits and meats, Walmart’s focus on frozen food (which is very popular in the U.S.A.) was disconcerting.

Is Rakuten Part Of Walmart?

Rakuten is a partner in business and a stakeholder 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.

It was an eCommerce platform selling American goods. Walmart fulfils 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.

You might be curious to find out more information about Walmart. This includes whether Walmart is located in India, Delhi or New Zealand.

Conclusion

Walmart is a Japanese company that has been present in Japan since 2000. However, it’s obvious that things aren’t always going the way Walmart would like.

Walmart was not used to Japanese culture and norms. This may have contributed to their failure.

Walmart will be able to benefit from their close connections with Rakuten Japan Online, which is Japan’s largest retailer online, in future projects.

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