United News International (UNI)- Walmart has decided to part ways with its Japanese supermarket unit Seiyu as a result of fierce competition from online retailers.
The company has already approached several large retailers with talks of selling the unit for between 300 billion yen and 500 billion yen.
According to Reuters, a sale would be the latest exit by Walmart from a lower-growth market as it looks to invest in places like China and India.
However, finding a buyer may prove difficult as they will have to incur costs for reorganizing Seiyu’s distribution centers and its 335 locations.
The decision comes as Walmart tries to keep up with fast growing online retailers like Amazon.
To strengthen its online presence in Japan, Walmart partnered with e-commerce company Rakuten in January.
The companies are planning to launch an online grocery service together.