What: Sogo & Seibu, which merged in 2003, will be sold to a non-Japanese company next year.

Why it is  important: A foreign investor fully focused on maximising its exit might contribute to shaking and modernising the Japanese department stores landscape.

Sogo & Seibu will be sold to US investment fund Fortress Investment Group by Seven & I in February 2023 for $1,73bn. The plan is to revamp the Sogo & Seibu department store by teaming up with appliances retailer Yodobashi Camera Co (which will become a major tenant in the 10-large store fleet) and review costs.

Seven & I, which bought the Sogo & Seibu company in 2006, operates a chain of outlets selling cosmetics within Sogo & Seibu and this business will not be sold. Seven & I will focus on its Seven-Eleven convenience store business.

Seven & I to sell Sogo & Seibu to US fund Fortress Investment