Daiei Inc., Japan's ailing supermarket operator, is ready to make its third -- and final -- attempt at rehabilitation. On Monday, the state-run Industrial Revitalization Corp. of Japan (IRCJ) formally selected trading house Marubeni Corp. and investment fund Advantage Partners as Daiei's business sponsors. The revival plan has the support of major creditor banks.
The "scrap and build" plan calls for closing unprofitable stores throughout the country and opening small and medium-size stores in the greater Tokyo and western Kinki regions. This means that Daiei has abandoned its broad policy of running general-merchandise stores and has adopted a narrower strategy focused on food supermarkets.
By contrast, other supermarkets are trying to expand their networks of one-stop centers. With Japanese society aging at an accelerating pace, the supermarkets are targeting elderly consumers who prefer to shop at stores that offer a full range of products. Thus Daiei's "food-only" policy marks a complete departure from the all-inclusive strategy.