Dive Brief:

• Walmart has reportedly approached major retailers and private equity funds about selling its Japanese supermarket chain Seiyu, multiple sources familiar with the matter told the Nikkei business daily Thursday.
• The sale could amount to between 300 billion and 500 billion yen ($2.7 billion to $4.5 billion), according to Nikkei. Walmart told Reuters it does not comment on market speculation and the company did not immediately respond to Retail Dive's request for comment.
• Just last month, Walmart sold an 80% stake in its Brazilian operations to private equity firm Advent International. And in April, the company announced a merger between its U.K.-based Asda grocery and upmarket U.K. grocer Sainsbury's. Under the terms of that deal, it would still hold 42% of the combined business.

Dive Insight:

Walmart is taking major steps to rethink its international plan, starting by shedding struggling businesses in countries with less growth potential than the U.S., China and India.

In its latest move, it may be ditching Seiyu, which it spent up to 100 billion yen ($878 million) to acquire in 2007 by buying out the firm's remaining minority shareholders. From 2002 to 2007, the retail giant funneled more than $1 billion into the Japanese chain just as it was headed for its sixth straight annual loss, according to a Reuters report at the time. Seiyu was delisted from the Tokyo Stock Exchange in 2008 and the chain has continued to struggle under Walmart's ownership, which means finding a buyer could be a challenge. Many of Seiyu's 335 stores are aging and its rivals are also struggling, Reuters reports.

The Japanese market has been tricky for international retailers to tap into. French grocer Carrefour exited the country in 2005 and British brand Tesco did the same in 2011. But Amazon has been able to go head-to-head with Japan's No. 1 e-commerce company, Rakuten. In fact, in 2016, Amazon overtook Rakuten in market share in the country with 23% of the market, compared to Rakuten's 18.5%, according to data collected by the Financial Times.

Selling Seiyu wouldn't mean Walmart is entirely giving up on Japan, though. The company announced a "strategic alliance" with Rakuten in January. That partnership included a joint venture for a new online grocery delivery service and solidified Walmart as the exclusive mass retail partner for Rakuten's Kobo e-book and audiobook brand.