Japan’s Don Quijote signals interest in Walmart chain Seiyu

Bloomberg

Don Quijote Holdings Co.’s chief is interested in buying the Seiyu retail chain if Walmart Inc. is selling its Japanese operations.
The Japanese discount store operator would take a serious look at Seiyu if Walmart puts it up for sale, according to comments made by Chief Executive Officer Koji Ohara at a briefing in Tokyo. He added that real estate is essential for retail and there are many locations the company doesn’t have access to.
A Don Quijote spokesman confirmed Ohara made the comments, which were reported earlier by Reuters.
The world’s largest retailer has held preliminary talks with investment banks about a possible sale of Seiyu, people with knowledge of the matter said
last month. Walmart hasn’t started a formal sale process, and there’s no certainty the deliberations will lead to a transaction, the people said.
Walmart said at the time it’s committed to building its Japanese business.
Walmart has been reshaping its international operations. In recent months, the retailer has sold a majority stake in its Brazilian business, agreed to cede control of its British chain Asda and spend $16 billion to acquire India’s e-commerce leader Flipkart in its biggest-ever deal.
Don Quijote, which operates discount chains across Japan, has been lauded for its unique approach to retailing, selling everything from home furnishings to electronics. The stores’ appeal among tourists has helped the company reach double-digit sales growth in recent years despite a challenging domestic retail
environment.