Aeon plans 500 Tokyo small supermarkets - Nikkei

NEW YORK, April 13 (Reuters) - Aeon Co Ltd (8267.T: Quote, Profile, Research) intends to open about 500 small convenience store-sized supermarkets in the Tokyo area by February 2012, making it the first major retailer to build such a network, the financial daily Nikkei said in its Tuesday edition.

The paper said the stores will be located only in the Tokyo metropolitan area.

It said Aeon expects to spend about 15 billion yen on the stores and hopes to reap sales of about 100 billion yen ($999.3 million) per year.

Nikkei said the stores will have retail space of 130 to 200 square meters each, about the same size as convenience stores, but carry merchandise like perishables and Aeon private label items. The stores will operate from 6 a.m. to midnight.

Sales of large supermarkets have stalled with the turndown in the economy and Aeon is likely to report its first net loss in seven years for the year ended February 2009. As a result, Nikkei said Aeon is cutting down spending on large stores in suburban shopping centers to concentrate on small supermarkets and other growth areas. ($1=100.066 yen) (Reporting by Gerald E. McCormick; editing by Gunna Dickson)