Core Insights - Ito-Yokado is further reducing its presence in the Chinese market by exiting its last store in Beijing, the Asian Games Village store, and selling approximately 90% of its subsidiary's shares to a local company [3][4] - The company will focus on enhancing the profitability of its six existing stores in Chengdu after this adjustment [3][7] Group 1: Company Operations - Ito-Yokado has transitioned to retaining only brand licensing in Beijing, while its operational focus will shift to Chengdu, where it has a stronger foothold [3][5] - The company has a history in China dating back to 1996, with its first store opening in Chengdu, and it has since expanded its operations to include various retail formats [4][5] - Despite the reduction in store numbers in Beijing, Chengdu has seen steady growth, with the number of stores increasing from 7 in 2017 to a peak of 11 in 2021 [6][7] Group 2: Market Position and Challenges - Ito-Yokado was once a leading player in the Chinese retail market, ranking among the top 30 fast-moving consumer goods chains in 2012 with annual sales exceeding 7 billion yuan [7] - The rise of online retail and new retail formats has diminished the appeal of its traditional "supermarket + department store" model, leading to a decline in market share [7][8] - In 2024, the company reported a sales decline of 18.6% in Chengdu, with total sales reaching 3.72 billion yuan, while maintaining its position at 96th in the Chinese retail chain rankings [7][8] Group 3: Strategic Direction - The return of former chairman Mitsuhiro Miura aims to revitalize the company's strategy in China, focusing on adapting to the new consumer landscape and developing a long-term growth strategy [8][9] - The company has initiated significant renovations in its stores, starting with the Chengdu Jin Hua store, as part of a "shrink and attack" strategy to concentrate resources in high-potential areas [8][9]