Tokyo Wal-Mart Stores Inc.â€™s Japan unit, Seiyu Ltd. said it likely lost twice as much money in 2007 as previously forecasted due to slumping sales and a charge to write down the value of some stores, according to Reuters.
The retail giant has invested approximately $2.2 billion in the Japanese division since 2002. However, the supermarket remains mired in the red amid tough competition with rivals such as Aeon Co.Â
Seiyu, which Wal-Mart has a 96% stake in, said it now expects to post a group net loss of 20.9 billion yen for 2007â€”its sixth straight loss. The loss puts the company at a deficit of 10.4 billion yen.Â
Seiyuâ€™s same-store sales fell 1.2% in 2007, due to sluggish demand for apparel and household goods. After reevaluating their earnings potential based on recent sales data and surrounding competition, the retailer also said it will book a charge of 6.5 billion yen to write down the value of about 10 stores.