What: Following the uproar leading to a unusual strike, Fortress has decided to keep all stores, including the ailing ones.

Why it is important: The flagship, which is profitable, will still be turned into a consumer electronics store.

Fortress Investment Group, after acquiring Sogo & Seibu, intends to keep all 10 department stores in Japan operational and retain the current workforce. Seven of these stores are in the Tokyo metropolitan area, with the remaining three in Akita, Fukui, and Hiroshima. Despite the challenges faced by the regional stores, Fortress is committed to supporting them. The U.S. investment firm has increased its renovation budget from JPY 20 billion to JPY 60 billion. This includes plans to introduce an outlet of the prominent electronics retailer, Yodobashi Holdings, in Tokyo's Seibu Ikebukuro store. Yodobashi, in collaboration with Fortress, contemplates further expansion in other locations with a proposed investment of nearly JPY 300 billion. The Yodobashi outlet in the Seibu Ikebukuro store is projected to utilize half the total retail space. Additionally, any job redundancies caused by the renovation will be accommodated by other companies affiliated with Fortress or Seven & I Holdings, the former owner of Sogo & Seibu.

Fortress to keep all Sogo Seibu stores for now