Wal-Mart announced it will buy the remaining four percent of Seiyu, the Japanese chain it now operates despite major losses. Seiyu's failure has been blamed on a number of issues, including cultural intolerance. The major issue with its Japanese subsidiary, however, seems to be a failure of the low price model that has made Wal-Mart so famous here. Wal-Mart claims the purchase is to increase the 'flexibility' it needs to improve the store. It seems owning 96% of the company wasn't enough to control the company.

Here's the story from the AP:

Wal-Mart Stores will buy the rest of Japanese chain Seiyu as the U.S. retail giant seeks the flexibility it says it needs to turn around the money-losing supermarket operator.

Seiyu, Japan's fifth-biggest retailer by sales, said shareholders approved the move at a meeting earlier Tuesday.The vote allows Wal-Mart to buy the remaining 4 percent of Seiyu it doesn't already own.

Since entering the Japanese market in 2002, Wal-Mart has been gradually raising its stake in Seiyu, which has about 400 stores nationwide. But Wal-Mart has also struggled to make money in Japan. Although mall-style shopping is increasingly popular here, for everyday food and other needs, shoppers tend to go to smaller neighborhood stores.

In February, Seiyu reported a net loss of 20.93 billion yen (US$216 million; €137 million) for last year, underscoring the tough time Wal-Mart is having in returning the Japanese company to the black.