Daiei Inc. might shut down all of its stores in Okinawa, Shikoku and the Chugoku region based on a revival plan mapped out by the Industrial Revitalization Corp. of Japan, sources said Thursday.
Daiei may also close all but two stores in the Tohoku region, the sources said.
The government-backed body, which has decided to help rehabilitate the struggling retailer, plans to pare down Daiei's business areas as it believes Daiei's past policy of sticking to nationwide operations was one factor that contributed to its poor performance.
But the plan is likely to be finalized by taking into account the intentions of sponsors to be chosen in the spring, according to the sources.
Daiei currently has six outlets in the Chugoku region, four in Shikoku and two in Okinawa.
The retailer will shut down 53 loss-making outlets, mainly general merchandise stores, out of its 263 stores, and open 100 new supermarkets in the Tokyo and Osaka areas.