Sakae Isaka, an Ito-Yokado Co. senior managing director, will succeed Toshifumi Suzuki as president, and Suzuki will become chairman and chief executive officer, company sources said Saturday.
Isaka, 60, is scheduled to be informally appointed at a board meeting Thursday and to take up the post after a shareholders' meeting May 22.
Suzuki, 70, has served as president since taking the post in October 1992.
The sources said Ito-Yokado hopes the shakeup rejuvenates its leadership.
After the May shareholders meeting, the company will introduce a chief operating officer post to try to increase management transparency and speed up decision-making by separating the functions of control and operations, the sources said.
Ito-Yokado also plans to shorten the term of its board members from two years to a year.
Suzuki will double as chairman and CEO, overseeing the entire Ito-Yokado group, and Isaka will be in charge of operations, doubling as president and chief operating officer, the sources said.
Isaka became senior managing director in May 2001.
The business environment surrounding the supermarket chain is severe, due to restructuring costs. Ito-Yokado's group net profit tumbled 80.9 percent year-on-year to 6.79 billion yen in the first half of the retailer's 2002 business year, to Aug. 31.
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