TOKYO -- Japanese retail giant Aeon announced on Tuesday that it has agreed to buy Tokyo-based Inageya, a major supermarket chain serving the Tokyo metropolitan area. Aeon intends to invest tens of billions of yen to increase its stake in Inageya from 17% at present to over 50% by the end of February 2024.
Supermarkets in Japan are struggling with sluggish sales due to inflation and falling demand as more people get out of their houses with the easing of the COVID-19 pandemic. Investments to develop online offerings and delivery services are necessary, but expensive. Aeon, by expanding its subsidiaries and alliances hopes to make these investments and its procurement of goods more cost-effective.