Rakuten faces ¥27 bn impairment loss on online grocery business

Rakuten Group, Inc. announced it expects to record an impairment loss of approximately ¥27 billion in its consolidated financial statements for the third quarter of the fiscal year ending December 31, 2025. This follows a strategic re-evaluation of its online grocery business, which includes Rakuten Seiyu Netsuper and the fulfillment center-based online grocery delivery service. The company's decision to withdraw from the Ibaraki warehouse (Kansai area) further contributed to this impairment.

The impairment loss stems from customer acquisition falling short of initial projections, despite efforts to rebuild product procurement and expand the customer base. Challenges cited include longer-than-anticipated product procurement process development and environmental shifts, such as consumers returning to physical stores post-COVID-19. Rakuten will implement measures like strengthening its ecosystem collaboration, expanding product lineups, and restructuring logistics to improve profitability.

Despite these challenges, Rakuten Group remains committed to the online grocery market, aiming to provide convenient services as a key business segment. The recoverable amount for this asset group was determined to be zero, with future cash flows being negative for the cash-generating unit.