Wal-Mart cuts costs at Seiyu

US retail giant Wal-Mart is to speed up integration of subsidiary Seiyu into its global operations as it works to decrease costs at the flailing Japanese retailer.

Mike Duke, the new head of Wal-Mart's international division, said that Wal-Mart would source an increased percentage of items supplied to the Japanese market using its global procurement operations. "There may be even greater opportunities where Wal-Mart has purchasing abilities and very good relationships with multinational suppliers," he told the FT.

The integration of Seiyu stores into the company's global data network should also ensure a reduction in costs. Seiyu shareholders have approved a plan for the retailer to fully become part of Wal-Mart. Ed Kolodzieski will be the new chief executive, after working as COO of Wal-Mart's international division.