Wal-Mart Japan unit to close 20 stores, cut staff

TOKYO, Sept 29 (Reuters) - Wal-Mart Stores Inc's (WMT.N) Japan unit Seiyu Ltd said it will close about 20 unprofitable stores and cut 6 percent of its workforce as it struggles to gain traction in the world's second-largest economy.

But Seiyu, which became a fully-owned subsidiary of the world's largest retailer earlier this year, said it would also look to open stores in new regions and consider acquisitions to help it expand.

Seiyu Senior Vice President Ryo Kanayama said targets may include supermarket chains with a nationwide network.

"Operations that are highly complementary with our store network are attractive," he said at a media briefing. "Our stores are concentrated in the Tokyo metropolitan area. We would look at areas outside that area."

Seiyu has lost money for six straight years through 2007, hurt by tough competition with bigger rivals such as Seven & I Holdings (3382.T) in a mature market.

Seiyu said it would launch an early retirement scheme likely to attract about 350 employees, or about 6 percent of its total full-time workforce.

The company said refurbishing its large stores had helped boost sales recently. Same-store sales rose 0.6 percent for the six months ended in June, it said. (Reporting by Taiga Uranaka; Editing by David Holmes)