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Japan-Update

Store makeover costs seen eating into Yamada Denki profit

Inventory liquidation also hurts first-half results

A Yamada Denki store in Maebashi, Gunma Prefecture, specializes in furniture sales and home renovations.

TOKYO -- Japanese electronics retailer Yamada Denki's pretax profit apparently fell about 10% on the year in the April-September term as expenses rose for reorganizing existing stores to accommodate the company's new businesses of furniture sales and home renovation service.

Pretax profit probably reached only about 25 billion yen ($219 million), undershooting an earlier guidance of 31.6 billion yen and a 14% increase.

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