German mail-order retailer Otto Group is to buy Sumitomo Corporation’s 49 per cent stake in joint venture Otto-Sumisho Inc to help reach a goal of 60 billion yen annual sales in Japan by 2010.
Though financial details were not disclosed but the sale is expected to be complete on December 28 when the joint venture will be renamed Otto Japan Inc, Otto Group said in a statement, reports Thomson Financial.
Otto-Sumisho — founded in Tokyo in 1986 — has more than 6 million registered customers that subscribe to catalogs including Bon Prix and Home Collection.
‘Japan being its most important market in Asia, the Otto Group aims at further strengthening and expanding its Asian activities from its Japanese base,’ Otto Group said.
The company also said it plans to grow its business in Japan by boosting internet sales, sales via mobile phones and through ‘possible mergers and acquisitions in the sector of store retailing.’
