The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

KKR has announced the sale of the Japanese supermarket chain Seiyu to Trial Holdings for JPY 380 billion ($2.54 billion). This transaction also includes Walmart divesting its remaining 15% stake in Seiyu to Trial Holdings.

The deal represents a strategic realignment for both KKR and Seiyu, positioning the supermarket chain for continued growth under new ownership.

Established in 1963, Seiyu is a nationwide supermarket chain in Japan with over 240 retail locations. Operating through supermarket and hypermarket formats, as well as the Seiyu Netsuper delivery service, it offers customers a wide range of products, including fresh food, general merchandise and apparel.

KKR's journey with Seiyu began in 2021 when it acquired a 65% majority stake from Walmart. This was followed by an additional purchase of 20% from Rakuten in 2023, bringing its total ownership to 85%. The acquisition by Trial is expected to close in Q2 of 2025, pending regulatory approvals.

Trial Holdings, primarily focused on discount retail, aims to use this acquisition to expand its footprint in Japan, creating a retail group with consolidated sales exceeding JPY 1 trillion ($6.69 billion). The company anticipates synergies from the deal, particularly in enhancing its e-commerce capabilities.

The sale comes after a transformative period for Seiyu, during which KKR and Walmart implemented significant operational improvements.

Key initiatives included:

Enhancing product quality: Seiyu has focused on improving the quality and variety of its offerings, particularly in fresh produce and private label products, which have become essential revenue streams.

Operational efficiency: The supermarket chain has introduced advanced technologies, such as self-checkout systems and automated restocking processes, leading to enhanced productivity and reduced labor costs.

Business model evolution: Seiyu has shifted from a traditional general merchandise store (GMS) to a more competitive supermarket model, optimising product assortment to better meet consumer needs.

Digital transformation: Investments in IT infrastructure have allowed Seiyu to enhance customer experience through improved online services and delivery options.

Hiro Hirano, deputy executive chairman of KKR Asia Pacific and CEO of KKR Japan, said: “We are incredibly proud of what we have achieved with Seiyu and our strategic partners Walmart and Rakuten over the course of our ownership, and how this has delivered tremendously for Seiyu’s customers and our investors."

He continued: "Seiyu serves as an outstanding example of how global investors with deep local knowledge, global connectivity and know-how can help iconic Japanese brands and local champions unlock their full potential. We are confident that Seiyu is well-placed to build on its achievements and wish the company and Trial continued success.”

Tsuneo Okubo, CEO of Seiyu, thanked KKR and Walmart for their support, emphasising the company’s advancements in merchandising and operational capabilities.

"Over the past few years, we have leveled up our merchandising strategies and in-store operational capabilities while reinvesting in our stores, employees and IT capabilities as part of our transformation," he added. "We now look forward to building on this success with the support of our new shareholder Trial in Seiyu’s next chapter."