Global private equity major KKR has announced its increased stake in Seiyu, a leading supermarket chain in Japan, through the purchase of Rakuten’s stake in the company.
KKR’s stake in Seiyu will rise from 65% to 85% as a result of the transaction. The collaboration between KKR, Rakuten, and Walmart, Seiyu’s third shareholder, has been instrumental in supporting the growth and development of Seiyu since KKR and Rakuten initially invested in the company in 2021.
The partnership has focused on various initiatives to enhance Seiyu’s offerings to customers. These initiatives include the implementation of cashless payment methods such as Rakuten Pay and Rakuten Edy, the utilization of Japan’s leading membership loyalty program, Rakuten Points, improvements in product quality and selection, particularly for fresh produce and delicatessen items, optimization of store operations and processes leveraging KKR’s operational expertise, and the enhancement of online-merges-with-offline (OMO) initiatives through strategic collaboration among the shareholders.
Following the transaction, Rakuten will remain a strategic partner to Seiyu and will continue working closely with the company’s management and shareholders to further strengthen its value proposition and convenience for customers. The goal is to prioritize customer satisfaction while aiming to make Seiyu Japan’s top supermarket and online supermarket by 2025.
Hiro Hirano, Co-Head of Private Equity for KKR Asia Pacific and CEO of KKR Japan, expressed enthusiasm for deepening the relationship with Seiyu and unlocking the company’s full potential through the strategic partnership with Rakuten and Walmart. The focus remains on delivering greater value and convenience to customers across Japan and maintaining Seiyu’s strong growth.
Seiyu’s President and Representative Director, Tsuneo Okubo, highlighted the company’s medium-term management plan, aiming to establish itself as Japan’s leading supermarket and online supermarket by 2025.
Okubo emphasized the importance of investing in human capital, information systems, and stores to generate greater profits and value through high-quality products and strengthened sales capabilities. The partnership with Rakuten and the ongoing business transformation program have contributed to Seiyu’s success, with a 50% year-on-year growth in operating income in FY22.
Kazunori Takeda, Director and Group Executive Vice President of Rakuten Group, praised the fruitful collaboration with Seiyu, crediting KKR’s support and retail expertise for the growth of the Rakuten Seiyu Netsuper online grocery delivery service. Takeda affirmed the commitment to continue working together to enhance convenience for customers.
The details of KKR’s investment, made through its Asian Fund IV, have not been disclosed at this time. – BusinessNewsAsia.com