Retailer Seven & I Holdings Co. may close about 30 money-losing branches in the Ito-Yokado Co. department store chain by February 2013, sources said Thursday.
The retrenchment, its biggest ever, would represent around 17 percent of the 180 Ito-Yokado stores nationwide.
Ito-Yokado is believed to have suffered its first operating loss ever from March to August and plans to close small and medium-size stores, mostly in rural areas. Seven & I Holdings was scheduled to report its earnings for the six-month period later in the day.
For the business year through next February, the company is negotiating with local communities to shut four stores in Hokkaido, Miyagi, Nagano and Shizuoka prefectures, the sources said. It plans to close seven to eight stores the following year through February 2011.
Ito-Yokado also hopes to turn around its operations by opening five large stores and merging some existing stores with The Price, a discount chain, in fiscal 2010.
Seven & I's move follows restructurings undertaken by its rivals to boost lackluster sales, particularly of clothing, caused by the global economic slump.
Aeon Co. announced last October that it expects to close 60 stores. Daiei Inc. said in April it plans to close 20.