Plan calls for continued investment, while adjusting store portfolio
Company Website:
http://www.stock.walmart.com
TOKYO -- (Business Wire)
Note: This is an English translation of the release issued in Japanese.
Seiyu GK (“Seiyu”) today announced its plan to invest in several areas
of strategic focus over the next few years to allow for improved
in-store customer experience and greater access to online shopping.
Through these investments, Seiyu will further enhance its capability to
provide customers with a better shopping experience, focused on
freshness and convenience. At the same time Seiyu will steadily driving
EDLC (Every Day Low Cost) and improve productivity across the company,
with the objective of significantly strengthening its EDLP (Every Day
Low Price) strategy.
Seiyu’s EDLP strategy has led to increasing customer recognition of low
prices, and sales and profit growth over the last five years. The
company saw its accelerated growth continue during the first half of
this fiscal year, significantly outperforming the overall market.
Performance was driven by price leadership, as well as ongoing
initiatives to enhance its fresh and deli offerings, and fuel growth of
its private brands and services under SEIYU.com.
Building on its strong performance, Seiyu will upgrade its overall store
portfolio and close nonperforming stores that are not aligned with the
company’s strategy.
Outline of the Strategic Investments:
■ Accelerate store remodels to offer more comfortable and convenient
shopping experiences:
Seiyu will accelerate remodels of existing stores, with particular focus
on enhancing fresh and deli categories to provide customers with a more
comfortable and convenient shopping experience and a better fresh
offering. With an eye on increasing customer needs, the company plans to
remodel approximately 50 stores in 2015, aiming to create a lively
shopping environment where customers can enjoy quality fresh foods or do
quick shopping for prepared meals. Through these remodels, the company
will also improve productivity and efficiency of its store operations.
■ Enhance capabilities to manufacture deli products and control
quality of fresh foods:
Seiyu will invest in the deli manufacturing facilities of Wakana, a
wholly owned subsidiary of the company, to improve overall productivity
and enhance production capabilities. It will introduce more versatile
cooking and processing equipment providing greater flexibly to increase
and upgrade menu variety. Regarding fresh foods, the company will set up
dedicated quality control (QC) facilities and teams at all distribution
centers (DCs) by the end of 2015, establishing a system to implement
DC-based comprehensive inspections on all major produce items. The
inspection results will be shared with suppliers to pursue continuous
improvement both in quality and productivity. This QC system will expand
to meat and fish categories in the future.
■ Portfolio optimization:
In order to further drive EDLC and improve profitability of its entire
business, Seiyu will close approximately 30 existing nonperforming
stores. The company will focus resources on driving continued strong
performance in locations that are convenient for customers and allow for
an improved shopping experience.
■ Continue to expand the capacity of SEIYU.com:
In the Greater Tokyo area, where demand for online grocery home delivery
is growing, Seiyu will increase its fulfillment and service capacities
in the next three years. With a goal to expand the service coverage to
the entire metropolitan area, the company will accelerate steps to
improve productivity of its online grocery operations in order to serve
rapidly growing customer needs more efficiently and cost-effectively.
About Walmart
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save
money and live better -- anytime and anywhere -- in retail stores,
online, and through their mobile devices. Each week, more than 250
million customers and members visit our 11,100 stores under 71 banners
in 27 countries and e-commerce websites in 11 countries. With fiscal
year 2014 sales of over $473 billion, Walmart employs approximately 2
million associates worldwide. Walmart continues to be a leader in
sustainability, corporate philanthropy and employment opportunity.
Additional information about Walmart can be found by visiting http://corporate.walmart.com
on Facebook at http://facebook.com/walmart
and on Twitter at http://twitter.com/walmart.
Contacts:
Wal-Mart Stores, Inc.
Media Relations Contact
Randy
Hargrove, 800-331-0085
or
Investor Relations Contact
Carol
Schumacher, 479-277-1498
Source: Wal-Mart Stores, Inc.
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