Discount retailer Wal-Mart (NYSE:) is planning a 22-store expansion into the Japanese market, . The new stores will be added to the more than 350 current stores in Japan, one of the world’s largest consumer markets.
The Arkansas-based chain became involved in Japan 10 years ago with their purchase of a minority stake in the Seiyu chain of supermarkets. With subsequent purchases, Seiyu is now a wholly owned subsidiary of Wal-Mart. The chain operates its stores in Japan under the Seiyu name.
Corporate belief is that the increasing number of single and lower-income households in Japan is leading to a greater acceptance of Wal-Mart’s operational philosophy of lower-priced products. The Japanese market traditionally has been skeptical of lower prices, equating them with lower-quality merchandise.
Wal-Mart currently has a 2.6% market share in the Japanese retail market, vs. a of the American market. The chain has more than three times the revenue of chief American competition Target (NYSE:) and Costco
(NASDAQ:), according to .
The commitment to Japanese expansion goes along with Wal-Mart’s expansion in other areas. Last week, the company announced that it intended to open stores in India within two years.
Other stories about Wal-Mart from InvestorPlace:
