Ailing retail giant Daiei Inc. is likely to undertake more decentralized merchandising and store operations as part of its restructuring efforts, a key manager in its group said Wednesday.
Heihachiro Yoshino, president of Maruetsu Inc., a supermarket chain 36 percent owned by Daiei, will become Daiei's vice chairman in May.
He said Maruetsu's strength lies in a high level of store autonomy that enables outlets to best meet local demands.
Yoshino, a former senior Daiei official, will return to help turn around the parent chain, whose sales are more than six times that of Maruetsu.
Daiei posted a drop in same-store sales for the seventh straight month in March.
Maruetsu, which runs 280 supermarkets mainly in the Tokyo area, reported Wednesday its same-store sales in the year through February grew 0.5 percent over the year before. It said it expects its earnings to more than double for the current year to 2.65 billion yen due to the absence of shareholding losses.
In addition to localized store management, the firm attributed its solid performance to an array of high-end niche products. Such goods tout food safety, health qualities and environmental friendliness.
Yoshino also said longer operating hours helped customer traffic. Currently, 67 outlets close at 11 p.m. or later, and 30 are open 24 hours.
"We hope to promote strong sales (at Daiei) by sharing knowhow on store operation, merchandising and procurement, as well as by fostering personnel exchanges," Yoshino said.
Daiei will announce its annual earnings Friday.