Japan Business

Toshiba is likely to report a loss of about $986 million at its HD DVD business for the year, after deciding to discontinue the format and cede victory to Sony's Blu-ray format. Production line changes and other charges associated with the shuttering will double the loss that Toshiba had previously expected. (Digital Media Wire, 3/19/08)

Wal-Mart said it will buy the remaining 4% of Seiyu, Japan's fifth-biggest retailer by sales, that it doesnt already own as Wal-Mart seeks the flexibility it says it needs to turn around the money-losing supermarket operator. Since entering the Japanese market in 2002, Wal-Mart has been gradually raising its stake in Seiyu, which has about 400 stores nationwide. But Wal-Mart has also struggled to make money in Japan as Japanese still prefer to go to smaller neighborhood stores for everyday food and other needs. In addition, Wal-Mart's "Everyday Low Price" strategy has backfired in Japan, where consumers tend to equate low prices with low quality. Overall, Wal-Mart's track record at its international operations has been uneven. While its business has flourished in Mexico and Latin America, shopping cultures in other regions, such as Asia, have failed to respond to the sales format that proved successful in the US. (Los Angeles Times, 3/19/08)